Many Arizona buyers put down far less than 20%. Conventional loans can go as low as 3% down for qualifying buyers, FHA as low as 3.5% and VA as low as 0% for eligible veterans. On top of that, Arizona and Maricopa County offer down payment assistance, including the statewide Home Plus program and Maricopa County's Home in Five programs. Assistance can be a grant, a forgivable loan or a loan you repay, and you usually apply through an approved lender, not directly.
Arizona first time buyers have access to several loan programs designed to lower the barrier to entry, from low down payment conventional loans to state backed down payment assistance. Here's an honest overview, your lender will confirm exact eligibility and current terms.
I spent time as a loan officer before I became a broker, and I'm a CPA. The biggest mistake I see is people waiting years to save 20% when they could have qualified for a program with far less down. Here's what's out there.
Conventional loans with low down payments
Many conventional loan programs now allow as little as 3% down for qualifying first time buyers, which is a significant departure from the 20% down assumption many buyers still carry. Under 20% down, expect private mortgage insurance, which can usually be removed later as your equity grows.
FHA loans
FHA loans remain popular for first time buyers due to more flexible credit requirements and down payments as low as 3.5%. They do carry mortgage insurance requirements worth understanding fully before you commit.
VA loans
Eligible veterans and active duty service members can access VA loans, which often allow 0% down and don't require private mortgage insurance, one of the strongest loan programs available for those who qualify.
USDA loans for eligible areas
Some areas surrounding Chandler may qualify for USDA loans, which can offer 0% down financing for eligible rural and suburban edge properties, worth checking if you're open to slightly further out locations.
Arizona down payment assistance
Arizona offers down payment assistance that can help cover down payment and closing costs for qualifying buyers, often structured as a second loan that's forgivable or deferred. The main programs you'll hear about in the Phoenix area:
| Program | Run by | Where |
|---|---|---|
| Home Plus | The Arizona Industrial Development Authority | Statewide |
| Home in Five Advantage and Home in Five Platinum | Maricopa County and Phoenix industrial development authorities | Maricopa County |
| Arizona Is Home | The Arizona Department of Housing with the Arizona Industrial Development Authority | Check current eligible areas |
The Arizona Department of Housing lists current statewide options on its Programs for Homebuyers page, and Maricopa County describes Home in Five on its housing assistance page. Percentages, income limits and credit score minimums change during the year, so confirm current terms before you plan around any program.
How down payment assistance generally works
Most programs provide funds toward your down payment and closing costs, structured as a grant, a forgivable loan, or a deferred second loan that becomes due upon sale, refinance, or payoff of the first mortgage. The structure matters enormously to your long term plans.
Programs typically consider income limits, purchase price limits, credit score and sometimes first time buyer status, often defined as not having owned a home in the past three years. Some require a homebuyer education class. And you usually don't apply to the program yourself. You apply through a lender approved for it.
"Free money" vs. loans you'll repay
Not all assistance is free, some programs are true grants, while others are loans that must eventually be repaid. And a program's interest rate can be a little higher than a loan without assistance. Ask your lender to show you both side by side, the payment with assistance and the payment without it, so you can see the real tradeoff.
The seller can help with closing costs too
On top of any program, your offer can ask the seller to pay some of your closing costs. Every loan type limits how much a seller can contribute, and the limit depends on the loan and your down payment. For example, FHA generally allows seller contributions up to 6% of the price, and conventional loans with less than 10% down generally allow up to 3%. VA has its own rules. Your lender will confirm the exact limit for your loan before we write the offer.
Asking for seller help is a negotiated term, so it works best when the rest of your offer is strong. Sometimes a slightly higher price with a seller credit gets you to the closing table with more cash left in your pocket. I'll run both versions with you.
Homebuyer education
Many assistance programs require a homebuyer education class before closing, and even when it's optional, it's worth your time. Look for a class from a HUD approved housing counseling agency, and keep the certificate, because your lender will ask for it. Take it early in your search so it doesn't hold up your closing.
Getting started, in order
1 - Pull your credit report and fix any errors you find.
2 - Gather two years of tax returns, recent pay stubs and bank statements.
3 - Talk to a lender approved for the assistance programs you're interested in.
4 - Ask to see your payment with and without assistance, side by side.
5 - Take the homebuyer education class if your program requires it.
6 - Get a written pre approval before you start touring homes.
How I help you navigate this
I don't originate loans, but I work with lenders who specialize in first time buyer programs, and I make sure you understand your real options before you assume you need a large down payment you don't actually have to have. Then I help you figure out your comfortable number in How much home can you comfortably afford in Arizona?
Once you know which programs might fit, the Home Clarity Quiz helps you get clear on the home itself, what you want, where, and what you won't give up, so your search starts with a plan.
The bottom line
You may qualify for more assistance than you think. Let's connect you with a lender who can lay out your real options clearly.
Let's take the confusion out of this decision, schedule your clarity call today.
Questions, answered.
Do I have to be a first time buyer to qualify for these programs?
Some programs are specifically for first time buyers, often defined as not having owned a home in the past three years, while others, including Home Plus, are open more broadly. Your lender can clarify.
Can I combine down payment assistance with an FHA or conventional loan?
Often yes, depending on the specific program, this is exactly the kind of detail your lender needs to confirm for your situation.
Is down payment assistance free money?
It depends on the program, some are grants, others are forgivable after a period, and others are loans that must be repaid. Understanding the difference matters, and I'll make sure you're asking your lender the right questions.
How do I apply for Home Plus or Home in Five?
Through a lender approved for that program. The lender checks your eligibility and handles the application along with your mortgage.
Can I use more than one down payment assistance program?
Usually not. Most purchases use one assistance program, so compare them with your lender and pick the one that fits best.
Can the seller help pay my closing costs?
Yes, if they agree. Your offer can ask for a seller credit, and each loan type limits how much the seller can contribute. Your lender will confirm the limit for your loan before we write the offer.
Want to talk it through?
Bring me the specifics of your situation and I will tell you straight what I would do. No pitch, nothing to sign, and no obligation to work with me afterward.
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