This program runs on a seasonal schedule. Applications and funding may only be available during part of the year.

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Arizona Is Home Down Payment Assistance

By Tyler Thompson · Licensed Real Estate Agent · Updated October 22, 2026

Administered by:

Arizona Industrial Development Authority (Arizona IDA) and Arizona Department of Housing

· State · Deferred Loan

Funding status: Seasonal

About the Arizona Is Home Down Payment Assistance

Arizona Is Home Down Payment Assistance pairs a below-market 30-year fixed mortgage with a 0% second loan equal to 4% of the first mortgage, for first-time buyers in 13 rural Arizona counties. The Arizona Industrial Development Authority runs it with mortgage revenue bonds, so it has an annual allocation. As of October 6, 2026, Arizona IDA says the 2026 funds are exhausted and the program is paused until next year's allocation.

The program covers Apache, Cochise, Coconino, Gila, Graham, Greenlee, La Paz, Mohave, Navajo, Pinal, Santa Cruz, Yavapai and Yuma counties, but not Maricopa County, Pima County or the town of Chino Valley. Income must be at or under 100% of area median income for the county, with limits as of July 1, 2026 ranging from $66,300 in Apache, La Paz, Navajo and Santa Cruz to $112,400 in Pinal. Buyers must be first-time homebuyers, except qualified veterans and buyers in targeted areas. The minimum credit score is 620 and debt-to-income follows the underwriting findings. The stricter rule is the review: borrower income and first-time status are checked before closing, using strict income calculations, and one borrower must complete homebuyer education before closing.

The second loan carries no interest and no payments, but it is never forgiven: the full 4% is due on sale or refinance. Because the first mortgage is bond financed, a federal recapture tax can apply for 9 years, and Arizona IDA reimburses it. The recapture applies only if the home stops being the main residence, sells at a gain and income has risen past that year's limit. Arizona IDA Home Plus, the statewide sibling, forgives its 4% after 60 months instead.

How much assistance

4% of the total first mortgage balance for down payment and closing costs

0% interest, no-payment second mortgage. Not forgivable: the full amount is due on sale or refinance.

Eligibility

Income limits: Up to 100% of area median income by county, effective July 1, 2026, for example Apache $66,300, Coconino $106,000, Pinal $112,400, Yuma $79,300.
First-time buyer required: Yes — Must be a first-time homebuyer. Qualified veterans and purchases in targeted areas are exempt. First-time status and income are reviewed before closing.
Credit score minimum: 620
Geographic restrictions: Rural Arizona only: Apache, Cochise, Coconino, Gila, Graham, Greenlee, La Paz, Mohave, Navajo, Pinal, Santa Cruz, Yavapai and Yuma counties. Not available in Maricopa or Pima counties or in Chino Valley. Paired with a below-market 30-year fixed first mortgage.
Homebuyer education required: Yes

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How to Apply for Arizona Is Home Down Payment Assistance

Step 1: Confirm the county and wait for funding

Arizona Is Home serves only 13 rural counties and excludes Maricopa, Pima and Chino Valley. Arizona IDA's update dated October 5 to 6, 2026 says 2026 funds are gone and new reservations are paused until the next annual allocation. Check homeplusaz.com/arizona-is-home-dpa for the reopening notice before you plan around this program.

Step 2: Check the county income limit

The limit is 100% of area median income for the county where the home sits, as of July 1, 2026. Examples: Cochise $78,500, Coconino $106,000, Mohave $79,900, Yavapai $92,200 and Yuma $79,300. Arizona IDA applies strict borrower income calculations, and its compliance reviewer, Hilltop Securities, checks income before closing rather than after, so document every source.

Step 3: Document first-time buyer status or an exception

Buyers must be first-time homebuyers. Qualified veterans and buyers purchasing in a targeted area are exempt from that rule. The pre-closing compliance review confirms first-time status, so gather tax returns and housing history early, and bring a DD-214 if you are relying on the veteran exception. Missing paperwork can delay the reservation.

Step 4: Complete pre-purchase homebuyer education

One borrower must finish a pre-purchase education course before closing. Arizona IDA accepts approved online providers such as eHome America, Framework and Fannie Mae HomeView, or an in-person class from a HUD-approved counseling agency in Arizona. Arizona IDA recommends finishing the course early, because the certificate is part of the file that gets reviewed before closing.

Step 5: Pick a participating lender and loan type

Use the Find-A-Lender tool at homeplusaz.com/find-a-lender and ask for a loan officer who knows both Arizona IDA programs. Eligible first mortgages are FHA up to 96.5% loan-to-value, VA and USDA up to 100%, HUD 184 up to 97.75%, and Fannie Mae HFA Preferred or Freddie Mac HFA Advantage at 97%. Manufactured homes qualify on the FHA, VA, USDA, HUD 184 and Fannie Mae options.

Step 6: Reserve, pass review and close

The lender reserves the loan on Arizona IDA's online platform and has 60 days to deliver it. Hilltop Securities reviews income and first-time status before closing, so corrections happen before you sign rather than after. The 4% second lien records at closing, and Arizona IDA will not subordinate it later. Questions go to Operations@HomePlusAz.com or 602-799-5931.

Real Cost Example

Casa Grande in Pinal County had a median owner-occupied value of $303,900 in Census ACS 2020-2024 data. An FHA buyer there puts 3.5% down, or $10,637, on a base loan of $293,263. Arizona Is Home adds 4% of that loan, about $11,731, as a 0% second lien. That covers the full down payment and leaves about $1,094 for closing costs, all of it due back on sale or refinance.

Estimated closing costs of 2% to 3% of price would run about $6,078 to $9,117 in Casa Grande. After the $1,094 left over, the buyer still needs roughly $4,984 to $8,023. FHA allows the seller to pay up to 6% of the price, or $18,234 here, toward those costs. Pinal County's income limit of $112,400 is the highest of the 13 eligible counties.

A buyer at or under 80% of area median income could ask a participating FHLBank San Francisco member bank about adding a WISH grant, which matches savings four to one. Saving $2,000 would bring an $8,000 WISH grant if the lender allows it alongside Arizona Is Home. Together with the $11,731 second loan, that is $21,731 toward a cash need of roughly $16,715 to $19,754.

Combining With Other Programs

Arizona Is Home assistance goes to down payment and closing costs on a below-market bond-financed first mortgage, so most of the benefit comes from the lower rate and the 4% second together. The FHLBank San Francisco WISH grant, up to $32,837 in 2026 through member banks in Arizona, California and Nevada, is the most likely addition for first-time buyers at or under 80% AMI. Confirm with the lender that it permits the layering.

A buyer cannot use Arizona Is Home and Arizona IDA Home Plus on the same loan; the two are separate Arizona IDA products reserved through the same lenders. Buyers in Maricopa or Pima County, Chino Valley, or anyone shopping while 2026 funds are paused should use Home Plus, which is self-funded and open year round. Arizona IDA can be reached at 602-799-5931.

Seller credits can cover the closing costs the 4% does not reach, up to 6% of price on FHA loans. Gift funds are another source. Because the second lien is due on refinance, buyers who expect to refinance soon should weigh that cost against the lower bond rate.

Pros and Cons

Arizona Is Home pairs a bond-financed first mortgage rate, set at issuance rather than repriced daily, with a 4% second that charges no interest and no payments. VA and USDA borrowers can reach 100% financing, manufactured homes are eligible on FHA, VA, USDA, HUD 184 and Fannie Mae loans, and the income limits of $66,300 to $112,400 track each rural county's median. Arizona IDA also reimburses any federal recapture tax a seller owes within 9 years, provided its first mortgage is still outstanding at the sale.

The biggest limitation right now is funding: the 2026 allocation is exhausted and new reservations are paused until next year. The 4% second is never forgiven, so the full amount comes due on any sale or refinance, unlike Home Plus, which forgives after 60 months. The program excludes Maricopa and Pima counties and Chino Valley and requires first-time buyer status. Buyers outside the rural counties or shopping before reopening should compare Arizona IDA Home Plus or the WISH grant.

Frequently Asked Questions

Is Arizona Is Home down payment assistance available now?+

No. Arizona IDA posted an update dated October 5 to 6, 2026 saying the 2026 Arizona Is Home funds are exhausted and the program is paused for the rest of the year. It runs on an annual mortgage revenue bond allocation and reopens when the next year's funds arrive. In the meantime, Arizona IDA Home Plus pays up to 4% statewide, is self-funded and has no first-time buyer rule. Check homeplusaz.com for the reopening date.

Which Arizona counties qualify for Arizona Is Home?+

13 rural counties: Apache, Cochise, Coconino, Gila, Graham, Greenlee, La Paz, Mohave, Navajo, Pinal, Santa Cruz, Yavapai and Yuma. Maricopa County and Pima County are excluded, so Phoenix, Mesa, Scottsdale and Tucson buyers cannot use it. The town of Chino Valley in Yavapai County is also excluded. Buyers in those places should look at Arizona IDA Home Plus, which covers all 15 counties, or at local programs such as the Tucson and Pima County HOME loan.

Do I have to pay back Arizona Is Home assistance?+

Yes. The assistance is a second mortgage with 0% interest and no monthly payments, but it is non-forgivable. The full amount, 4% of the first mortgage balance, is due when you sell the home or refinance the first mortgage, and Arizona IDA does not subordinate its lien or grant exceptions. On a $293,263 FHA loan, that is about $11,731 owed at payoff. Arizona IDA Home Plus is the forgivable alternative, wiped out after 60 months.

What are the Arizona Is Home income limits for 2026?+

100% of area median income by county, as of July 1, 2026: Apache, La Paz, Navajo and Santa Cruz $66,300; Cochise $78,500; Gila $78,900; Yuma $79,300; Mohave $79,900; Greenlee $83,500; Graham $84,100; Yavapai $92,200; Coconino $106,000; and Pinal $112,400. Arizona IDA applies strict borrower income calculations, and its compliance reviewer checks income before closing, so report every source of income to your lender at application.

Can veterans use Arizona Is Home if they have owned a home before?+

Yes. Qualified veterans are exempt from the first-time homebuyer requirement, and so are buyers purchasing in a targeted area. Everyone else must be a first-time homebuyer, and the status is reviewed before closing. VA loans can be paired with Arizona Is Home at up to 100% loan-to-value. All other rules still apply: the county must be one of the 13 eligible rural counties, the credit score must be at least 620, and income must fit the county limit.

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