Why This Program Matters Right Now
Arizona buyers continue to face affordability pressure from high home prices, elevated mortgage costs and the upfront cash required to close. Even when a buyer can qualify for a mortgage, the down payment and closing costs can create a major barrier.
The Arizona Department of Housing HOME Plus Program is worth highlighting because it directly targets that upfront cost problem. It provides down payment assistance and closing cost assistance that can help eligible buyers reduce the amount of cash needed at closing.
What This Program Provides
The Arizona Department of Housing HOME Plus Program provides up to 4% of the purchase price to help eligible buyers cover down payment and closing costs.
The program is provided through the Arizona Industrial Development Authority. It is available statewide in Arizona and can be used with approved first mortgage options.
Funds may be used for:
- Down payment assistance
- Closing cost assistance
The minimum assistance amount is 2% of the purchase price. The maximum assistance amount is 4% of the purchase price.
Program Structure
The HOME Plus assistance is structured as a 0% interest forgivable second mortgage.
The down payment assistance second mortgage is fully forgiven after five years, or 60 months. If the homeowner sells or refinances the Home Plus first mortgage within the first 60 months, the second lien must be repaid.
Arizona IDA does not subordinate the second lien or make exceptions to the repayment terms.
The program does not use taxpayer funds. It is self-funded through money raised in the national capital markets and income generated from program operations. The program is continually funded and does not have a stated sunset date.
Key Numbers
- Maximum assistance: 4% of the purchase price
- Minimum assistance: 2% of the purchase price
- Interest rate on assistance: 0%
- Forgiveness period: Five years, or 60 months
- Maximum household income: $146,503 for all Arizona counties
- Minimum household income: N/A
- Minimum borrower contribution: N/A
- Credit score requirement: 640
- Repayment required: No, if the borrower meets the five-year forgiveness requirement
- Repayment triggered: Sale or refinance within the first 60 months
- Prepayment penalty: None
- Maximum purchase price: Not publicly disclosed
Eligibility Requirements
To use the Arizona Department of Housing HOME Plus Program, buyers must meet the program and first mortgage requirements through an approved participating lender.
Key applicant requirements include:
- Household income must be at or below $146,503 in all Arizona counties.
- Minimum credit score is 640.
- The home must be used as the buyer’s primary residence.
- Homebuyer training is required.
- There are no first-time homebuyer requirements under the Home Plus Program.
- Prior homeownership does not disqualify the buyer based on the information provided.
- Debt-to-income requirements are determined by the participating lender.
- Citizenship status requirements are not publicly disclosed.
- Current residency requirements are N/A.
Approved first mortgage types include:
- FHA
- VA
- USDA
- HUD Section 184
- Fannie Mae HFA Preferred
- Freddie Mac HFA Advantage
Property Requirements
The Arizona Department of Housing HOME Plus Program is available for eligible properties across Arizona.
Property requirements include:
- Property must be located in Arizona.
- Program coverage applies to all Arizona counties.
- Property must be used as the buyer’s primary residence.
- Eligible property types may include single-family homes, duplexes, condos, townhomes and manufactured homes, depending on the Home Plus loan program selected.
- Number of units listed as eligible includes single, duplex, triplex and quadruplex.
- Additional property restrictions are based on the selected Home Plus loan program and participating lender requirements.
How the Process Works
- The buyer contacts an approved participating lender.
- The lender determines whether the buyer meets HOME Plus requirements.
- The lender also reviews eligibility for the underlying first mortgage.
- If eligible, the buyer selects an approved first mortgage type.
- The HOME Plus assistance is paired with the first mortgage as a 0% forgivable second mortgage.
- The assistance may be applied toward down payment and closing costs.
- The buyer must complete the required homebuyer training.
- If the buyer keeps the loan in place for 60 months, the assistance is fully forgiven.
- If the buyer sells or refinances within 60 months, the second lien must be repaid.
The homebuyer does not submit a direct application to Home Plus. Eligibility is handled through an approved participating lender.
Affordability Impact
The Arizona Department of Housing HOME Plus Program reduces the upfront cash required to buy a home. By providing up to 4% of the purchase price, the program can help eligible buyers cover part of the down payment and closing costs that would otherwise need to be paid at closing.
This program does not reduce the monthly payment. It reduces upfront cash required.
Where This Fits in the Market
The Arizona Department of Housing HOME Plus Program fits into the market as a statewide upfront cost assistance program. Its value is in helping qualified buyers who can handle a mortgage payment but need help with the cash required to close.
The program is different from assistance that is limited to one city or county because it is available across Arizona. It is also structured differently from repayable second mortgages because the assistance is forgivable after five years if the borrower does not sell or refinance during that period.
For example, an eligible buyer using an approved first mortgage may receive assistance equal to 2% to 4% of the purchase price. That assistance can reduce the amount the buyer needs to bring to closing for down payment and closing costs.
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