Home Plus Arizona Down Payment Assistance — Up to 5% Toward Your Home Purchase
The down payment is the single biggest obstacle most Arizona homebuyers face. The Home Plus program — administered by the Arizona Industrial Development Authority (Arizona IDA) — is designed to remove that obstacle. It provides qualified buyers with up to 5% of the loan amount as down payment and closing cost assistance, structured as a forgivable second mortgage with no monthly payments and no interest. I'm Joe Hansen, a licensed mortgage broker at Precision Mortgage in Peoria, AZ. I help buyers across Arizona navigate and qualify for the Home Plus program every day — and I'll give you a straight answer on whether it's the right fit for your situation. Learn more about Joe →
Down payment assistance isn't a loophole or a gimmick. It's a legitimate, well-funded state program built for exactly the kind of buyers who are financially ready to own a home but haven't had enough time to stockpile a 20% down payment. In a market where the median Phoenix-area home price sits around $400,000, that down payment gap is real — and Home Plus is one of the most effective tools available to close it.
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What Is the Home Plus Arizona Program?
Home Plus is Arizona's flagship statewide down payment assistance program. It's administered by the Arizona Industrial Development Authority (Arizona IDA) — a state agency — and funded through the national capital markets rather than taxpayer dollars. This matters for one critical reason: the program doesn't run out of funding and has no sunset date. Unlike some local DPA programs that exhaust their allocation by mid-year, Home Plus is consistently available throughout the year.
Here's how it works at a high level: when you purchase a home using a Home Plus-approved lender (like me), the program provides you with a second mortgage equal to a set percentage of your primary loan amount. That second mortgage carries zero interest and requires no monthly payments. It's then forgiven over 36 months — at a rate of 1/36 per month — meaning if you stay in the home for three years, the entire amount is erased. You never pay it back.
The assistance can be applied toward your down payment, your closing costs, or both — giving you maximum flexibility based on what your specific transaction needs.
Home Plus Program Snapshot — Key Details at a Glance
Assistance AmountUp to 5% of the primary loan amount. Military borrowers may qualify for an additional 1%, bringing total assistance to 6%.
Forgiveness StructureZero-interest deferred second mortgage, forgiven monthly at 1/36 over 36 months. Stay in the home 3 years and it's completely gone.
Loan Types AcceptedWorks with FHA, conventional (Fannie Mae / Freddie Mac), VA, and USDA first mortgages.
Credit ScoreMinimum 640 FICO for most loan types. Manufactured homes require a minimum of 660.
Income LimitHousehold incomemust not exceed $155,386 (as of April 6, 2026). This limit applies statewide — no county-by-county variation for this program.
Debt-to-IncomeMaximum DTI of 45% for borrowers with a 640 FICO score; up to 50% for borrowers with a 680+ scProperty TypesSingle-family homes, townhomes, condominiums, and manufactured homes in approved communities. Must be your primary residence.
First-Time Buyer Required?No. Both first-time and repeat homebuyers can qualify. There is no requirement that you haven't owned a home before.
Education CourseAt least one borrower on the loan must complete a HUD-approved homebuyer education course before closing.
How Home Plus Assistance Works With Each Loan Type
The amount of DPA you receive through Home Plus — and how it gets applied — varies slightly depending on which underlying loan program you use. Here's how the program works across each option:
| Loan Type | DPA Available | How Assistance Is Used | Key Notes |
|---|---|---|---|
| FHA | Up to 5% | Down payment & closing costs | Min. 640 credit score; FHA county loan limits apply; reduced mortgage insurance available |
| Conventional (Fannie/Freddie) | Up to 5% | Down payment & closing costs | Min. 640 credit score; reduced MI premiums — often lower than FHA MIP |
| VA Military | Up to 5% (+ 1% military bonus) | Closing costs (VA already covers down payment) | Since VA loans require no down payment, DPA covers closing costs; military bonus may apply |
| USDA | Up to 5% | Closing costs (USDA is zero down) | Property must be in a USDA-eligible rural area; min. 640 credit score |
Note: Not all lenders offer all loan types within Home Plus. As an approved participating broker, I'll confirm which options you qualify for based on your specific situation.
Not sure which loan type makes the most sense to pair with Home Plus? I'll run the comparison for you — including payment estimates side by side.
What Home Plus Actually Means for Your Purchase — A Real-World Example
Let's make this concrete. Say you're buying a $380,000 home in Peoria, AZ using an FHA loan with Home Plus assistance.
Without Home Plus:
- Down payment (3.5%): $13,300
- Estimated closing costs: $7,000–$9,000
- Total cash needed at closing: ~$20,000–$22,000
- Home Plus assistance (5%): $19,000
- Covers down payment: $13,300
- Remaining applied to closing costs: $5,700
- Potential cash needed at closing: $0–$3,000
That's the difference between needing $20,000+ saved up and potentially getting into a home for a few thousand dollars or less out of pocket. The second mortgage that funded that assistance carries no interest, requires no monthly payment, and is fully forgiven over three years.
Numbers will vary based on your specific loan amount, rate, and closing costs. I'll build out the real scenario for your situation — no obligation required.
Who Qualifies for Home Plus in Arizona?
Home Plus is more widely available than most buyers assume. Here are the core eligibility requirements:
- Annual household income under $155,386 (as of April 6, 2026 — this limit is periodically updated)
- Minimum 640 FICO credit score (660 for manufactured homes)
- Debt-to-income ratio at or below 45% (up to 50% with a 680+ credit score, depending on loan type)
- Primary residence purchase only — investment properties and second homes do not qualify
- Must use a Home Plus-approved lender — not every lender in Arizona participates in this program
- At least one borrower must complete a homebuyer education course before closing (available online through HUD-approved providers)
- Both first-time and repeat buyers are eligible — there is no requirement to be purchasing your first home
- No purchase price limit beyond the underlying loan program's own limits
The income limit of $155,386 is notably generous — it covers a significant portion of Arizona households and is much higher than many people expect. If you've looked at DPA programs in the past and thought you earned too much to qualify, it's worth revisiting Home Plus specifically.
The Home Plus Process — From Application to Closing
The Home Plus program doesn't require a separate application from the homebuyer. It's administered entirely through your mortgage lender — which keeps the process clean and avoids the delays that some buyers fear. Here's how it works end to end:
Home Plus requires you to work with an approved participating lender. As an approved broker, I handle the program on your behalf — you don't need to navigate the Arizona IDA directly. This is the first and most important step, because not all lenders in Arizona are authorized to offer Home Plus.
I'll review your income, credit, and debt picture to confirm you qualify for Home Plus and determine which underlying loan type (FHA, conventional, VA, USDA) maximizes your benefit. You'll know your assistance amount, your estimated payment, and exactly how much cash you'll need at closing before you ever make an offer.
At least one borrower must complete a HUD-approved homebuyer education course before closing. These are available online and typically take 4–8 hours to complete at your own pace. I'll point you to the right provider — this is a simple step that some buyers put off longer than they should.
Once pre-approved, you'll work with a real estate agent to find a home that meets the program's property requirements. Using Home Plus does not add delays to your offer or closing timeline — the program is structured to be invisible to sellers from a timing standpoint.
Your loan file is submitted for underwriting just like any standard mortgage. The Home Plus second mortgage is layered in at this stage. Underwriting timelines with Home Plus are comparable to a standard loan — the program is designed not to slow things down.
At closing, both your first mortgage and your Home Plus second mortgage fund simultaneously. Your down payment and/or closing costs are covered by the assistance. Starting after your closing date, the second mortgage begins being forgiven monthly — 1/36 per month for 36 months. After three years of on-time payments, the balance is zero.
Home Plus vs. Other Arizona Down Payment Assistance Programs
Home Plus is the most widely available DPA program in Arizona, but it's not the only one. Depending on your situation, another program may work better — or you may be able to stack benefits in some cases. Here's an honest overview of where Home Plus fits in the Arizona DPA landscape:
Home Plus vs. Chenoa Fund
The Chenoa Fund is a national DPA program that pairs specifically with FHA loans and provides 3.5% in down payment assistance — enough to cover FHA's minimum down payment in full. Like Home Plus, the Chenoa Fund offers a forgivable option (after 36 consecutive on-time payments) and a repayable option at a lower rate. The Chenoa Fund can be a strong alternative for buyers who don't meet Home Plus's income limits, or for those whose loan scenario fits better with FHA-only programs. I offer both programs and will help you determine which one produces the better outcome for your specific situation.
Home Plus vs. Home in Five (Maricopa County)
The Home in Five Advantage program is a county-specific DPA program available only in Maricopa County — which includes Peoria, Glendale, Surprise, Phoenix, and surrounding cities. It offers a competitive assistance amount targeted at lower-to-moderate income buyers. Home Plus's higher income limit ($155,386) makes it accessible to a broader range of buyers, while Home in Five may offer slightly different terms for those who qualify for both. Worth comparing if you're buying in Maricopa County.
The bottom line: the "best" DPA program depends on your income, credit score, loan type, and purchase price. I'll run both scenarios and show you which one saves you the most money.
Want to compare Home Plus to the Chenoa Fund side by side? I'll show you both options with real numbers based on your situation.
Frequently Asked Questions: Home Plus Arizona Down Payment Assistance
Do I have to repay the Home Plus assistance if I sell my home?
Yes — if you sell or refinance before the 36-month forgiveness period is complete, you'll need to repay the remaining unforgiven balance of the second mortgage. Because the loan is forgiven at a rate of 1/36 per month, the amount you'd owe decreases every month you remain in the home.
For example, if you sell at month 24, you would have already had 24/36 of the loan forgiven, and would repay only the remaining 12/36 of the original balance. If you stay through all 36 months, the balance is zero and there's nothing to repay — even if you sell the day after month 36.
Does using Home Plus mean I'll get a higher interest rate on my mortgage?
In some cases, yes — the first mortgage rate offered through a Home Plus-paired loan may be slightly higher than what you'd find on a comparable loan without DPA. This is a common trade-off with assisted programs. However, for most buyers, the value of receiving thousands of dollars in assistance upfront far outweighs the minor rate difference, especially when combined with the reduced mortgage insurance premiums that come with the program's conventional loan options.
The way to evaluate this is to compare the total cost of the loan — including the rate, mortgage insurance, and cash required at closing — against a non-assisted alternative. I run this analysis for every client using DPA so you can make an informed decision rather than just chasing the lowest rate number.
Can I use Home Plus if I already own a home?
Yes, in most cases. Home Plus does not require you to be a first-time homebuyer. However, the property you're purchasing with Home Plus must be your new primary residence. You typically cannot use Home Plus to buy a second home while continuing to live in your current one as a primary residence.
If you're selling your current home and buying a new one, you can absolutely use Home Plus on the new purchase — even if you've used a DPA program before. This is a common situation for Arizona move-up buyers and people relocating within the state.
What if my income is just above the $155,386 limit?
If your income exceeds the Home Plus limit, you have a couple of options worth exploring. First, income for Home Plus purposes is calculated from the borrowers on the loan — so depending on your household structure and who is on the mortgage, your qualifying income may be different from your total household income. This is worth reviewing carefully with a licensed professional rather than assuming you're over the limit.
Second, if you genuinely don't qualify for Home Plus, the Chenoa Fund may be an alternative worth considering — it has different eligibility parameters and may work in situations where Home Plus doesn't. I offer both programs and will help you find the right fit.
Is the homebuyer education course required, and how do I complete it?
Yes — at least one borrower must complete a HUD-approved homebuyer education course before closing on a Home Plus loan. The good news is that these courses are widely available online, typically cost $75–$125, and take 4–8 hours to complete at your own pace. You'll receive a certificate of completion that gets included in your loan file.
I'll point you to approved providers at the beginning of our process so you can complete this early and not worry about it as a last-minute item before closing. It's a straightforward requirement and most buyers find the course genuinely useful as a first-time or returning homeowner.
Can I use Home Plus assistance with a VA loan?
Yes. Home Plus works with VA loans, and it's a particularly useful pairing. Since VA loans already require zero down payment for eligible veterans and active-duty military, the Home Plus DPA on a VA loan is directed entirely toward closing costs — which can run $8,000 to $15,000+ depending on the loan size and transaction structure.
Additionally, qualified military borrowers (veterans, active duty, reservists, and National Guard members) may be eligible for an additional 1% in assistance beyond the standard program amount. If you're a veteran using a VA loan and wondering if closing costs are a barrier, Home Plus may be the solution that gets you to the closing table with minimal out-of-pocket costs.
How is Home Plus different from a grant?
Home Plus is technically a deferred, forgivable second mortgage — not a true grant, though it functions like one for most buyers who stay in the home for three years. The distinction is that a grant requires no repayment under any circumstances, while the Home Plus second mortgage is forgiven gradually over 36 months and would need to be repaid if you sell or refinance early.
In practical terms: if you stay in your home for three or more years, the result is identical to a grant — you receive money that covers your down payment and/or closing costs and never pay it back. For buyers who are confident in their timeline, the semantic difference between "forgivable loan" and "grant" is largely irrelevant.
Does Home Plus work in Peoria, AZ and the Phoenix metro area?
Yes — Home Plus is a statewide program available throughout Arizona, including Peoria, Glendale, Surprise, Scottsdale, Tempe, Chandler, Gilbert, and all other cities across the Phoenix metro area. There are no geographic restrictions within Arizona other than those that apply to the underlying loan program itself (for example, USDA loans require properties in designated rural areas).
I'm based in Peoria and work with buyers throughout the West Valley and greater Phoenix area. If you're buying locally, this is a program I work with regularly — and I know how to structure it to maximize your benefit for properties in this market.
Why Work With a Broker — Not a Bank — for Home Plus in Arizona?
Not every lender in Arizona is approved to offer the Home Plus program, and among those that are, the rates, fees, and loan options can vary significantly. As a mortgage broker, I'm not locked into one institution's products or pricing. I can shop your scenario across multiple wholesale lenders who participate in Home Plus — which typically means better rates and lower fees than going directly to a single bank or credit union that happens to offer the program.
Beyond the rate, there's the guidance. Home Plus works differently depending on which loan type you pair it with. The right choice between FHA, conventional, VA, and USDA isn't always obvious, and the wrong pairing can cost you money on mortgage insurance or limit your assistance amount. I'll build out the real comparison for your specific numbers before you commit to anything.
- Approved Home Plus participating lender — full access to the program
- Multiple wholesale lender options — competitive rates on the first mortgage
- Side-by-side comparison across loan types (FHA, conventional, VA, USDA)
- Access to alternative DPA programs like the Chenoa Fund if Home Plus isn't the best fit
- Over 20 years of mortgage experience in the Arizona market
- Personal service throughout — you work directly with me, not a call center
- Licensed in Arizona: NMLS# 217716 | AZ LO0911403
Related Pages & Resources
- Chenoa Fund Arizona Down Payment Assistance — Alternative DPA program paired with FHA loans; great for buyers who don't qualify for Home Plus
- FHA Loans in Arizona — Low down payment option that pairs well with Home Plus DPA
- Conventional Loans in Peoria, AZ — Conventional loan options with reduced mortgage insurance through Home Plus
- VA Loans in Peoria, AZ — VA loan details; Home Plus can cover closing costs for veteran buyers
- All Loan Options — Browse every program available through Joe Hansen and Precision Mortgage
- Mortgage Calculator — Estimate your monthly payment with and without DPA
- About Joe Hansen — Licensed mortgage broker in Peoria, AZ | 20+ years experience | NMLS# 217716
Let's Find Out If Home Plus Is Right for You
I'll review your income, credit, and purchase goals and give you a straight answer — including real numbers on how much assistance you'd receive, what your monthly payment would look like, and how it compares to your alternatives. No pressure, no obligation.
Check My Eligibility
Call (480) 239-7766
Joe Hansen | NMLS# 217716 | AZ LO0911403 | Precision Mortgage | 14155 N 83rd Ave Ste 125, Peoria, AZ 85381
Program details current as of April 2026. Income limits and eligibility requirements are subject to change. Contact me for the most current program terms.
