City of Tucson and Pima County HOME Down Payment Assistance

A Tucson buyer at the city's median value of $266,200, from Census ACS 2020-2024 data, needs $9,317 for a 3.5% FHA down payment. Twenty percent of that price is $53,240, so the HOME loan's $50,000 ceiling is the binding limit here. Because the consortium sizes help to need, a typical award covers the gap between the buyer's savings and the cash to close rather than the full maximum.

Estimated closing costs in Tucson run $5,500 to $8,000, bringing total cash needed to $14,817 to $17,317. Suppose the counselor approves a $15,000 HOME loan. The buyer adds the required $1,000, and a seller credit of $1,317 or less covers the rest at the high end. That $15,000 award falls in the 5-year tier, after which the 2% accrued interest is forgiven.

The buyer could take the first mortgage through Arizona IDA Home Plus with its 0% option, which adds no Arizona IDA lien and keeps the HOME loan in second position. With the HOME loan covering $15,000 and the buyer putting in $1,000, the purchase closes with about $16,000 of combined funds. The $15,000 principal is still repaid when the home is sold.

The HOME loan works with any fixed-rate FHA, VA or conventional Qualified Mortgage that the counselor approves, including Arizona IDA Home Plus first mortgages. Buyers who use the Home Plus 0% option keep the HOME loan in second position. The FHLBank San Francisco WISH grant, up to $32,837 in 2026, is offered through member banks to first-time buyers at or under 80% AMI; ask both the member bank and the counselor before layering it.

Adjustable-rate mortgages cannot be used, and a home above $304,000, or $345,000 for new construction, is out regardless of other help. Arizona Is Home does not serve Pima County, so it is not an option here. Questions about combining sources go to Chicanos Por La Causa at (520) 882-0018 or the City of Tucson Housing and Community Development department at 520-837-5325.

Seller credits toward closing costs lower the HOME award a buyer needs, which can keep it under $15,000 and in the shorter 5-year affordability period. The home inspection and warranty costs count toward the $1,000 buyer contribution, so those dollars do double duty. Gift funds from relatives can also go toward closing costs if the lender documents them.

The HOME loan offers far more money than any statewide Arizona program: up to $50,000, against roughly $10,000 from a 4% Arizona IDA loan on a median Tucson home. It carries no monthly payment, the 2% interest is forgiven at the end of the affordability period, and the buyer's required stake is only $1,000. Three local counseling agencies handle intake, and the program covers all of Pima County outside Tribal lands, not just city limits.

The biggest limitation is that the principal is never forgiven: it is repaid on sale, even after 15 years. The $304,000 cap on existing homes rules out anything priced above it, with only $345,000 allowed for new construction, and the 2025 income limit of $79,850 for a family of four is tight. Counseling before a contract, an environmental review and a required warranty slow the purchase. Buyers above these limits should compare Arizona IDA Home Plus or the WISH grant.