See programs you qualify for
Get Matched Free →Arizona IDA Home Plus Down Payment Assistance
By Tyler Thompson · Licensed Real Estate Agent · Updated October 22, 2026
About the Arizona IDA Home Plus Down Payment Assistance
Arizona IDA Home Plus Down Payment Assistance gives buyers anywhere in Arizona up to 4% of their first mortgage as a second loan that is forgiven after five years. The Arizona Industrial Development Authority funds it from the capital markets and its own program income rather than tax dollars, so money is available year round with no sunset date. Unlike Arizona Is Home, it covers Maricopa and Pima counties and has no first-time buyer rule.
Home Plus has three program rules of its own, and everything else follows the first mortgage's agency guidelines. Borrower income cannot exceed $155,386 a year, a single limit for all 15 counties effective April 6, 2026. That figure is the qualifying income on the loan application, so a non-borrowing spouse or adult child does not count against it. The middle credit score must be at least 620 even when automated underwriting would approve a lower score, which is the rule that catches most applicants. At least one borrower must finish a pre-purchase homebuyer education course before closing. There is no census tract test, no targeted area and no purchase price limit set by the program, and debt-to-income follows the underwriting findings. The home must be the buyer's primary residence.
The second lien carries 0% interest, no monthly payment and a five-year term. It is forgiven in full on the 60-month anniversary, with no partial forgiveness, so a sale or refinance in month 59 repays all of it. Arizona IDA sets the first mortgage rate, which can run slightly above market, and each DPA option carries its own rate. Arizona Is Home also pays 4% but is never forgiven, and the Tucson HOME loan caps the price at $304,000.
How much assistance
Eligibility
- Income limits: $155,386 maximum annual income statewide (effective April 6, 2026).
- First-time buyer required: No
- Credit score minimum: 620
- Geographic restrictions: Statewide Arizona, all counties. Primary residence only. Paired with a Home Plus 30-year fixed FHA, VA, USDA, HUD 184, Fannie Mae HFA Preferred or Freddie Mac HFA Advantage first mortgage from a participating lender.
- Homebuyer education required: Yes
How to Apply for Arizona IDA Home Plus Down Payment Assistance
Step 1: Compare your income with the 155,386 limit
Use the gross qualifying income your lender will put on the loan application, not your household's total. The limit of $155,386 took effect April 6, 2026 and is the same in Apache, Maricopa, Pima and every other county. If the first mortgage type has a lower limit of its own, such as the 80% AMI cap on reduced-cost conventional coverage, that lower limit applies.
Step 2: Pull your scores and check for 620
Home Plus requires a 620 minimum regardless of automated underwriting findings. With a tri-merge report the middle score counts, with two scores the lower one counts, and a single score follows the agency rules for that first mortgage. Buyers below 620 should work on credit first, because no lender can grant an exception to this program rule.
Step 3: Take an approved homebuyer education course
One borrower must finish pre-purchase education before closing and give the lender the certificate. Approved online courses include FinallyHome, eHome America, Freddie Mac CreditSmart Homebuyer U, Fannie Mae HomeView, Framework and Hometrek. In-person classes count when taught by a HUD-approved counseling agency in Arizona. Certificates do not expire, and some providers charge a small fee.
Step 4: Choose a Home Plus participating lender
Buyers cannot apply to Arizona IDA directly. Search homeplusaz.com/find-a-lender by ZIP code or download the participating lender list, updated October 5, 2026. Ask for a loan officer trained on Home Plus, compare fees, since each lender sets its own, and confirm which first mortgage types the lender offers: FHA, VA, USDA, HUD 184, Fannie Mae HFA Preferred or Freddie Mac HFA Advantage.
Step 5: Pick the DPA percentage and lock the rate
FHA, VA, USDA and HUD 184 loans offer 0%, 2%, 3% or 4% assistance, and the two conventional products offer 0%, 3% or 4%. Each percentage carries its own first mortgage rate, so ask the lender to quote each option side by side. Buyers with their own down payment can take the 0% option and keep the lower conventional mortgage insurance.
Step 6: Close and keep the home five years
The lender reserves the loan on the Arizona IDA platform and must deliver it within 60 days, and compliance is reviewed after closing. The 60-day delivery window is a lender deadline, so lock only when you have a home under contract. Keep the home as your primary residence and avoid refinancing until the 60-month anniversary, when the second lien is forgiven. Questions go to Operations@HomePlusAz.com or 602-799-5931.
Real Cost Example
On a $266,200 home in Tucson, the city's median value in Census ACS 2020-2024 data, a Home Plus FHA loan needs 3.5% down, or $9,317. The base loan is $256,883, so the 4% option provides about $10,275 as a forgivable second lien. That covers the whole down payment and leaves roughly $958 toward closing costs, with nothing to repay if the buyer stays 60 months.
Estimated closing costs in Tucson run $5,500 to $8,000. After the $958 left over from Home Plus, the buyer still needs about $4,542 to $7,042 in cash. FHA lets the seller pay up to 6% of the price, or $15,972 here, toward closing costs. A buyer who negotiates a 2% seller credit of $5,324 could close with very little of their own money.
A buyer at or under 80% of area median income could instead pair the Home Plus 0% option, which places no Arizona IDA lien, with the City of Tucson and Pima County HOME loan. That loan is sized to need, up to $50,000 or 20% of price, and needs counselor approval of the mortgage. A $15,000 HOME loan plus the buyer's required $1,000 would cover the $9,317 down payment and most closing costs.
Combining With Other Programs
Arizona IDA requires the Home Plus assistance lien to sit in second position. That makes the 0% option the cleaner route for layering local help: the buyer gets the Home Plus first mortgage and its reduced conventional mortgage insurance, and another program takes second position. In Tucson, the City of Tucson and Pima County HOME loan pays up to $50,000 for buyers at or under 80% AMI, $79,850 for a family of four.
Home Plus cannot be combined with Arizona Is Home, the other Arizona IDA program, because a buyer reserves one or the other with the same lender. Arizona IDA also will not subordinate its lien, so a refinance in the first five years means repaying the assistance. The WISH grant from FHLBank San Francisco, up to $32,837 in 2026, is offered only through member banks; ask the lender whether it allows WISH with Home Plus. Contact 602-799-5931.
Seller credits are the simplest addition: FHA allows up to 6% of price and conventional loans allow 3% to 6% depending on down payment. Gift funds from family can cover the rest of the closing costs. Upfront mortgage insurance on conventional loans can be financed or paid from the Home Plus assistance itself.
Pros and Cons
Home Plus is the Arizona IDA program a repeat buyer in Phoenix, Tucson or a rural county can use. The income limit of $155,386 is high, it counts only the borrowers' qualifying income, and funding is available every month of the year because the program is self-funded. The second lien carries no interest or payments and disappears completely after 60 months. Conventional borrowers also get mortgage insurance coverage below standard HomeReady levels, even on the 0% option.
The biggest catch is the cliff at month 60: there is no partial forgiveness, so selling or refinancing in year four repays every dollar. The first mortgage rate is set by Arizona IDA and can run slightly above market, and each DPA percentage is priced at its own rate. The 620 credit floor is firm. Buyers who need more than 4% should compare Phoenix Open Doors, Home in Five in Maricopa County, or the Tucson and Pima County HOME loan.
Frequently Asked Questions
Do I have to be a first-time homebuyer to use Arizona Home Plus?+−
Is the Home Plus down payment assistance forgiven?+−
What is the income limit for Home Plus in 2026?+−
How much down payment assistance can I get from Home Plus?+−
Can I use Home Plus with the Tucson HOME down payment loan?+−
Free eligibility check
See every program you may qualify for
How soon are you looking to buy?
housebuyerguidesSources
Last verified October 22, 2026.
- homeplusaz.com: Home Plus Dpa
- homeplusaz.com: Arizona Dpa Programs
- homeplusaz.com: Home Plus Down Payment Assistance from the Arizona IDA Product Trainin… (P
- homeplusaz.com: HPAZ AIH DPA Program Highlight Comparison v062026 (PDF)
- homeplusaz.com: Find A Lender
- homeplusaz.com: Contact Us
- tucsonaz.gov: Downpaymentassistance
- data.census.gov: Tucson city, Arizona