Red Rock Down Payment Assistance and First-Time Homebuyer Programs

Down payment assistance programs in Red Rock

Down payment assistance and first time home buyer programs aim to help home buyers make a larger down payment, cover closing costs, or a combination of both. There are several types of home buyer benefits, including grants, forgivable loans, and interest rate reductions and tax credits.

A grant is similar to a scholarship for college. You apply, and if you qualify for the program (i.e. meet all the criteria and the entity still has the money), you can receive funds toward your down payment or for another upfront cost related to your home purchase. 

A down payment loan (or second mortgage loan) is a loan you acquire in order to have the funds for a down payment. Many loan types require a minimum down payment between 3% and 20%. If you don’t have this money saved (many first-time home buyers don’t) then a down payment loan is an option to help you qualify. Some loans are even forgivable if you meet certain requirements like staying in the home for a few years.

Less commonly, some programs come with lower interest rates and tax credits (e.g., mortgage credit certificates) to help lower your monthly payments.

Pathway to Purchase Down Payment Assistance

The Pathway to Purchase Down Payment Assistance Program provides prospective homebuyers with a maximum of $20,000 towards their downpayment and closing costs. This program is an initiative of the Arizona Department of Housing and assists residents in 17 cities, including Arizona City, Avondale, Buckeye, Casa Grande, Coolidge, Douglas, El Mirage, Fort Mohave, Goodyear, Huachuca City, Laveen, Maricopa, Red Rock, Sierra Vista, Snowflake, Tucson, and Yuma.

Assistance type: Deferred Payment Loans

Sponsor: Arizona Department of Housing

Assistance amount: 10% of the loan amount up to a maximum of $20,000.

Purchase price limit: $371,936

Eligibility requirements

• Buyers must have a minimum FICO score of 640 and a maximum 45% debt-to-income (DTI) ratio.
• All buyers must attend a homebuyer education course, obtain a certificate of completion, and receive a home inspection.
• You cannot own another home to qualify for this program, but you do not need to be a first-time homebuyer.

Statewide down payment assistance programs available in Red Rock

Home Plus Home Buyer Down Payment Assistance Program

The Arizona HOME Plus Homebuyer Down Payment Assistance Program is a statewide initiative aimed at helping creditworthy renters who qualify for a mortgage but struggle with the downpayment and closing costs associated with homeownership. The HOME+Plus program provides a 30-year fixed-rate mortgage that can be used toward the down payment, closing costs, or a combination of both.

Assistance type: Fixed-Rate Mortgage

Sponsor: Arizona Industrial Development Authority (AzIDA)

Assistance amount: 4% of the home’s purchase price

Eligibility requirements

• The borrower’s annual income must not exceed $112,785.
• All applicants must have a minimum credit score of 640 or better.
• One borrower must complete a homebuyer education course before closing.

The Chenoa Fund Down Payment Assistance Program

The Chenoa Fund Down Payment Assistance program is another statewide initiative that offers 3.5% of the purchase price towards down payments throughout Arizona. This program helps individuals or families in need of down payment assistance but lacks a high credit score that other assistance programs require.

Assistance type: Forgivable Loan

Sponsor: CBC Mortgage Agency (CBCMA)

Assistance amount: 3.5% of the purchase price

Purchase price limit: $280,880

Eligibility requirements

• Applicants do not need to be first-time homebuyers, but they cannot own another home to qualify for the program.
• Buyers must have a minimum FICO score of 620.
• The program may only be used to purchase a home, with no refinancing.

Disclaimer: This article is for informational purposes only and should not be considered as legal or financial advice. Please consult an attorney, mortgage lender, or CPA for guidance on your specific situation.