Key Takeaways
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Arizona offers a wide range of first-time homebuyer programs in 2025, including down payment assistance, forgivable loans, and tax credits.
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HOME+PLUS and Home in Five Advantage are the most accessible statewide programs for many buyers.
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Local cities like Phoenix, Flagstaff, and Tucson provide additional support for low- to moderate-income homebuyers.
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Programs vary in requirements and forgiveness periods, so compare options carefully to choose the one that fits your financial goals.
Buying your first home in Arizona in 2025 can be exciting, but with the median home price reaching $455,100, affordability is a major hurdle for many. Fortunately, there are several Arizona first-time homebuyer programs, down payment assistance options, and low-income home loans that make homeownership more accessible.
Arizona Housing Market Overview (2025)
Here’s a quick look at key market stats for Arizona first-time homebuyers:
| Housing Metric | Value |
| Median Home Price (Feb. 2025) | $455,100 |
| Median Down Payment (Jan. 2025) | $72,225 |
| Most Affordable Counties | Greenlee, Santa Cruz, La Paz, Cochise, Apache |
Top Statewide First-Time Homebuyer Programs in Arizona
HOME+PLUS Program
Offered by the Arizona Industrial Development Authority (AzIDA), the HOME+PLUS program pairs a 30-year fixed-rate mortgage with up to 4% down payment assistance. The assistance comes as a forgivable second mortgage after three years.
| Requirements | Details |
| Credit Score | 620 or higher |
| Income Limit | $136,609 |
| Homebuyer Education | Required |
| Eligible Property Types | Primary residence only (SFH, condo, etc.) |
The program is available to both first-time and repeat buyers, and it helps cover down payments, closing costs, and prepaid expenses. Although, interest rates are typically higher compared to traditional loan programs without assistance.
Arizona is Home Program
This program offers similar benefits to HOME+PLUS but targets rural buyers and has stricter eligibility.
| Requirements | Details |
| First-Time Buyer | Required |
| Location Restrictions | Rural counties only (not Maricopa or Pima) |
| Credit Score | 620+ |
| Income Limit | ≤ 100% of Area Median Income |
| Homebuyer Education | Mandatory |
The assistance is forgiven after five years and can help cover a variety of upfront homebuying expenses. The program is not available in highly populated counties like Maricopa or Pima, limiting options for urban buyers.
Local First-Time Homebuyer Programs
Flagstaff: Community Homebuyer Assistance Program
Provides up to $40,000 in down payment and closing cost assistance via a repayable second mortgage.
| Key Requirements | Details |
| Location | Within Flagstaff city limits |
| Income Limit | ≤ 125% of area median income |
| Buyer Contribution | $1,000 minimum |
| Credit Score | No minimum required |
The program offers generous assistance and is accessible to buyers with lower credit scores. Assistance is provided in the form of a repayable second mortgage, which adds to your overall debt.
Phoenix: Home in Five Advantage
This program offers down payment help for Maricopa County residents and bonus incentives for community heroes like teachers and military personnel.
| Eligibility Requirements | Details |
| Credit Score | 640+ |
| Income Limit | $141,820 |
| Debt-to-Income Ratio | Max 50% |
| Homebuyer Education | Required |
Home in Five Advantage offers additional financial benefits for essential workers and allows both first-time and repeat homebuyers to qualify. The program does not cover multi-family properties, which limits investment or house-hacking opportunities.
Phoenix: Section 32 Homeownership Program
Buyers receive a 20% discount off the appraised home value, along with a forgivable loan from the city.
| Key Requirements | Details |
| Income Limit | ≤ 80% of area median income |
| Minimum Down Payment | 3% (1% must be buyer’s funds) |
| Forgiveness Period | 10 years |
| Mortgage Insurance | Not required |
The program provides a significant discount off the purchase price and does not require mortgage insurance, reducing monthly costs. The number of eligible homes available through the city is limited, making inventory competitive.
Phoenix: Open Doors Program
This program offers up to 10% of the purchase price as a deferred, forgivable loan for low-income buyers.
| Eligibility | Details |
| Income Limit | ≤ 80% AMI |
| Max Purchase Price | $447,000 |
| Buyer Contribution | $1,000+ |
| Forgiveness Period | Up to 15 years |
The assistance is not fully forgiven until up to 15 years have passed, which can be a long-term commitment for some buyers. You don’t have to repay the assistance if you remain in the home for the full forgiveness period.
Tucson & Pima County Programs
Pima Tucson Homebuyer Solution
Offers forgivable loans or VA grants, with no price caps and eligibility open to all buyers. The program has no purchase price limit and is open to both first-time and repeat buyers. Interest rates may be slightly higher than conventional loans due to the assistance component.
Tucson Down Payment Assistance
Provides up to 20% of home price for eligible low-income buyers. Requires $1,000 from buyer and reserves for 3 mortgage payments. Buyers can receive a substantial amount of assistance—up to 20% of the purchase price. Applicants must contribute $1,000 and have reserves equal to three months of mortgage payments, which can be a high barrier to entry.
Arizona Mortgage Credit Certificate (MCC)
The Mortgage Credit Certificate (MCC) program lets buyers claim a federal tax credit up to $2,000 per year.
| Details | Notes |
| Income/Purchase Price Limits | Apply |
| Application Fee | $500 one-time + $100 annually |
| Program Stackability | Can be used with other loans |
This program offers long-term tax savings for eligible buyers and can be used alongside other assistance programs. There is an upfront and annual fee associated with the MCC, which may reduce the overall benefit for some buyers.
National Loan Options for Arizona First-Time Buyers
| Loan Type | Benefits |
| FHA Loans | 3.5% down, 580+ credit score |
| VA Loans | 0% down, no PMI (for military) |
| USDA Loans | 0% down in eligible rural areas |
| Good Neighbor Next Door | Up to 50% discount for law enforcement, teachers |
Next Steps for Arizona First-Time Buyers
- Review Eligibility: Start by confirming your income, credit score, and location criteria.
- Get Pre-Approved: Work with a participating lender familiar with Arizona housing programs.
- Complete Education: Most programs require homebuyer counseling or a certified course.
- Compare Offers: Shop lenders to find the best mortgage terms.
- Improve Credit: If needed, pay down debt or boost your score to unlock better rates.
Ready to Buy Your First Home in Arizona?
With dozens of first-time homebuyer assistance programs in Arizona, there’s never been a better time to start your journey. From statewide grants to local loans, these options make it easier to achieve homeownership. Contact us today to get matched with the best program for your situation and get pre-approved.
FAQs: Arizona First-Time Homebuyer Programs
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