You May Not Need a Down Payment to Buy a Home in Arizona
Two of the most powerful programs available to Phoenix metro homebuyers — the Chenoa Fund and the Home in Five Advantage — can cover your down payment completely. Here's how they work.
For most Arizona homebuyers, the down payment is the single biggest obstacle between renting and owning. What many people don't realize is that programs already exist — funded and available right now — that can cover that gap entirely. You don't have to wait years to save up. You may be able to buy a home this year.
Program 1: Chenoa Fund
The Chenoa Fund is a nationwide down payment assistance program administered by CBC Mortgage Agency (NMLS# 1186381). It's specifically designed for buyers who need help covering the FHA down payment requirement — and unlike many state programs, it has no income limits and is always funded year-round.
How It Works
The Chenoa Fund provides a second mortgage equal to 3.5% or 5% of the purchase price. When paired with an FHA loan, the 3.5% option covers your entire minimum down payment — meaning you can buy a home with no money out of pocket for the down payment itself. You may still need funds for closing costs, though seller concessions or lender credits can often offset those.
There are two structures to choose from:
Chenoa Fund Key Details
The Chenoa Fund is the go-to option for buyers who earn too much for other programs or have lower credit scores. With no income cap and a 600 minimum credit score, it opens the door for buyers who might not qualify elsewhere.
Learn more at chenoafund.org
Program 2: Home in Five Advantage
The Home in Five Advantage program is administered by the Industrial Development Authority of Maricopa County and the City of Phoenix. It provides up to 5% — and up to 6% for eligible borrowers — in down payment and closing cost assistance for homebuyers purchasing anywhere in Maricopa County, including Peoria.
How It Works
Home in Five pairs a 30-year fixed-rate first mortgage (FHA, VA, or USDA) with a forgivable second mortgage that covers your down payment and closing costs. The second mortgage carries 0% interest and requires no monthly payments. It is forgiven after 84 months (7 years) — as long as you stay in the home, you pay nothing back.
Who Gets the Extra 1%?
Certain buyers qualify for an additional 1% of assistance on top of the standard 5%, bringing their total to 6%:
Home in Five Key Details
Peoria falls squarely within Maricopa County, which means Home in Five is available to you. If you're a first-time buyer, a veteran, or a first responder purchasing in the Peoria area, this program is worth a serious look — especially the 6% option for qualifying borrowers.
Learn more at mcida.com
Side-by-Side Comparison
Not sure which program fits your situation? Here's a quick look at how the two stack up:
| Feature | Chenoa Fund | Home in Five |
|---|---|---|
| Max Assistance | Up to 5% | Up to 6% |
| Income Limits | None | Up to $108,920/yr |
| Min. Credit Score | 600 | 640 |
| Loan Types | FHA (primary) | FHA, VA, USDA |
| First-Time Buyer Required? | No | Yes (3-yr rule) |
| Geographic Restriction | All AZ counties | Maricopa County only |
| Forgiveness Period | 36 months | 84 months |
| Always Funded? | Yes | Yes |
| Military / Veteran Bonus | — | Extra 1% assistance |
| Best For | Repeat buyers, higher incomes, lower credit | First-time buyers, veterans, first responders in Maricopa County |
Common Misconceptions
"I make too much money to qualify."
The Chenoa Fund has no income limits at all. Home in Five allows household incomes up to $108,920. Most working families in the Peoria area fall well within these thresholds — don't assume you're over the limit until we run the numbers.
"I've owned a home before."
The Chenoa Fund does not require you to be a first-time buyer. Home in Five does require that you haven't owned in the last 3 years, but if that's your situation and you meet the other criteria, you qualify.
"My credit isn't good enough."
The Chenoa Fund accepts scores as low as 600. Even if you're working to rebuild credit, there may be a path. Give us a call and we'll take an honest look at where you stand and what it would take to get you there.
"Down payment assistance means higher rates."
In some cases the rate on your first mortgage may be slightly higher than a non-assisted loan. However, when you factor in the money you keep in your pocket at closing — and the ability to own a home years earlier than you might otherwise — the math almost always works in your favor. We'll show you the full picture.
How to Get Started
We'll look at your income, credit, and goals to determine which program — or combination — fits your situation best. No cost, no obligation.
Both programs require a HUD-approved homebuyer education course. It can be completed online, typically in a few hours, from the comfort of your home.
Once you're pre-approved, your Realtor can start showing you homes. Your pre-approval letter will reflect the DPA assistance and give sellers confidence in your offer.
Find Out What You Qualify For — Today
I help Peoria and Phoenix metro buyers navigate down payment assistance programs every week. In many cases, buyers who thought homeownership was years away were in a home within 45 days. There's no cost to find out where you stand.
Frequently Asked Questions
Yes. Both the Chenoa Fund and Home in Five are available in Peoria. The
Chenoa Fund is available statewide across all Arizona counties. Home in Five is available throughout all of Maricopa County, which includes Peoria.
Helpful Resources
