You Might Not Need 20% Down | Arizona Programs That Help First-Time Buyers
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If you've been quietly scrolling through Zillow late at night, doing math in your head, and then closing the tab because you're pretty sure you just don't have enough saved — this one's for you. 🏡
I hear this all the time: "I want to buy, but I don't have 20% saved." And honestly? Most people don't. Most people don't need to. That number has been floating around like some kind of golden rule of homeownership for decades, and it's kept so many people on the sidelines who actually could have been making equity instead of paying someone else's mortgage.
Here's what I wish someone had told me sooner: Arizona has some of the most generous down payment assistance programs in the entire country. And there is a very real chance that one of them has your name on it.
Let's break it all down, no real estate or financing jargon, no gatekeeping.
First, Let's Bust the 20% Myth
The idea that you need 20% down to buy a home is just... not true. It became popular because putting 20% down lets you avoid paying private mortgage insurance (PMI), which is an added monthly cost. But it's not a requirement. It's a choice, and for many buyers (especially first-timers) it's not even the best choice.
FHA loans, for example, allow you to buy with as little as 3.5% down if your credit score is 580 or above. On a $400,000 home, that's $14,000 instead of $80,000. That's a number a lot more people can actually work toward.
And here's the thing: in Arizona, you might not even need to save that 3.5% on your own. That's exactly where down payment assistance programs come in. 🙌
So What Is Down Payment Assistance, Exactly?
Down payment assistance (DPA) programs are funds offered by state housing agencies, county programs, and nonprofit organizations to help qualified buyers cover their down payment and sometimes closing costs too. They're not shady deals or "too good to be true" situations. They're real programs, funded at the state and local level, specifically designed to help people like you get into a home.
Some of these programs come as a forgivable "second mortgage". Meaning if you stay in the home for a certain number of years, you never have to pay it back. Others are deferred loans at 0% interest, which means no payments until you sell or refinance. Either way, they're significantly lowering the cash you need at closing.
Arizona Down Payment Assistance Programs to Know in 2026 🗺️
Here are the big ones operating right now in the Phoenix Valley and across the state:
📋 Quick note before we dive in: Program details, income limits, and eligibility requirements can change, so always verify the latest specifics with your loan officer before making any decisions. Also worth noting, sometimes you don't need a down payment assistance program at all and can qualify for a home on your own! Everyone's situation is different, which is why having the right lending partner matters. Need a recommendation for a savvy loan officer who knows these programs inside and out? Reach out and I'll connect you with the best in the biz.
✦ AzIDA HOME+ PLUS Program
This is the flagship statewide program and honestly one of the best options for a wide range of buyers. It's run by the Arizona Industrial Development Authority (AzIDA) and is available in every county, every zip code in Arizona.
- Assistance: Up to 5% of the loan amount toward your down payment or closing costs
- Loan type: Paired with a 30-year fixed-rate mortgage
- Assistance structure: A deferred second mortgage at 0% interest, forgiven over time
- Income limit: Up to approximately $155,386/year (as of April 2026)
- Credit score: Minimum 640
- Requirement: At least one borrower must complete a homebuyer education course
- First-time buyer required? No — this one is open to repeat buyers too
One thing I love about this program: it's self-funded and consistently available year-round. No scrambling to catch it before the money runs out.💰
✦ Home in Five Advantage (Maricopa County)
If you're buying in the Phoenix metro area, this one is worth knowing about. Home in Five is specifically for Maricopa County and provides serious support for low-to-moderate income buyers.
- Assistance: Up to 5% toward down payment and closing costs
- Bonus: Educators, first responders, veterans, and active-duty military can qualify for up to 6%
- Structure: Forgivable second mortgage at 0% interest
- First-time buyer required? Primarily yes, though some exceptions apply for veterans
I love this program as it recognizes the community members who show up for all of us every day. Teachers, nurses, firefighters, y'all deserve to plant roots here too. ❣️
✦ Arizona Is Home Program
This is a newer initiative that's gained real traction in 2025 and 2026. It's designed specifically for first-time buyers and provides meaningful assistance to bridge the affordability gap.
- Assistance: Up to 4% of the loan amount as a second mortgage
- Income limit: At or below 120% of the Area Median Income (AMI)
- In Maricopa and Pima counties: Silent second mortgage (no monthly payments)
- In rural counties: Often forgivable after five years of residency
- First-time buyer required? Yes — you cannot have owned a home in the last three years
✦ Pathway to Purchase
This program is limited to specific cities in Arizona — 17 designated municipalities — but if you're looking in one of those areas, it can be a great option.
- Structure: 30-year fixed-rate mortgage with a second mortgage for down payment assistance
- Terms: Five-year lien at 0% interest
- First-time buyer required? Yes — no homeownership in the last three years
Not sure if your target neighborhood qualifies? That's the kind of question worth asking before you fall in love with a specific zip code — and I'm always happy to help you find out.
Don't Sleep on FHA Loans Either
Even without a specific DPA program layered on top, FHA loans are designed to make homeownership accessible. They're insured by the Federal Housing Administration and offer some of the lowest down payment requirements available.
With a credit score of 580 or above, you can put as little as 3.5% down. FHA loans also tend to be more forgiving of credit history and have competitive interest rates. Many buyers stack an FHA loan with a down payment assistance program for even more buying power.
On a $400,000 home, an FHA loan at 3.5% means you'd need $14,000 down. And with a down payment assistance program covering that amount, you could potentially be walking into a home with very little out of pocket.
What Do You Actually Need to Qualify?
Every program has its own guidelines, but here's a general picture of what most DPA programs in Arizona are looking for:
- Credit score: Most programs start around 620–640 minimum
- Income: Limits are actually quite generous in Arizona, many programs allow household income up to $155,000+
- Primary residence: You need to be buying a home you plan to live in, not an investment property
- Homebuyer education: Most programs require at least one borrower to complete a short online course. I know, a little silly, but don't worry, I've done it too🫠.
- Working with an approved lender: DPA programs are accessed through participating lenders, so who you work with matters
You don't have to have a perfect financial story. You just have to have a real one. These programs exist because the path to homeownership isn't the same for everyone, and that's okay. 💛
You Might Be Closer Than You Think ✨
I've has so many conversation with potential buyers who came in convinced they couldn't do it yet. They were paying over $2,300/month in rent, had decent credit, a steady job, and maybe $8,000 in savings. And after we ran the numbers with a DPA program? They were pre-qualified buyers who could write an offer that weekend.
That's not to say it's easy or that there aren't real steps to get there. It means the roadblock you've been staring at might be smaller than it looks. AND it might just need someone to walk through it with you (cough cough,🙋♀️)
The Phoenix market has cooled a bit heading into mid-2026 (unlike the weather), with median prices down slightly from a year ago. That means there's real opportunity out there right now for buyers who are ready to move. And programs like HOME+ PLUS and Home in Five aren't going anywhere.
If any of this is sparking something in you, I'd love to chat and get to know your goals. No agenda, no rushing you anywhere you're not ready to go. Just honest information about what's possible for you right now. 🏡
I work with first-time buyers across the Phoenix Valley and would love to help you figure out if one of these programs is a fit.
Let's explore your options →