Support for the Arizona IDA’s Home Plus and Arizona Is Home Down Payment Assistance Programs.
Down payment assistance (DPA) refers to programs that offer financial aid to help homebuyers, especially first-time buyers, manage the upfront costs of purchasing a home. These programs aim to make homeownership more accessible by alleviating the burden of the down payment, a significant barrier for many prospective buyers.
The Arizona IDA offers two Down Payment Assistance programs within the State of Arizona. Home Plus and the Arizona IDA’s Arizona Is Home.
Below are some key points about the two programs. At the bottom of the page, you will find links to more details about each program. It is the same information your Homebuyers will read. Thank you for taking a moment to learn more about Arizona IDA’s DPA Programs.
Both Arizona IDA Down Payment Assistance programs offer great paths to homeownership, yet they come with distinct qualifications, requirements, and options. Here are a few key points of each program.
Available statewide, all Counties, all Cities, and Zip Codes, within Arizona.
Receive up to 4% down Payment and Closing Cost Assistance.
Borrower(s) annual income is not to exceed $146,503.00.
One borrower must complete a home buyer education course before closing.
Reduced mortgage insurance premiums on conventional (Fannie/Freddie) mortgages.
Home Plus DPA funding is available throughout the year and is never exhausted. Home Plus also has no sunset date.
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The Arizona IDA’s Arizona Is Home Is Not Available in Pima or Maricopa Counties.
Receive a below-market 30-year fixed-rate mortgage combined with 4% DPA.
Eligible homebuyers must have annual incomes at or below 100% of the AMI.
The borrower must complete a home buyer education course before closing.
The second mortgage is fully forgiven after 60 months.
Funding is subject to availability. Once the funds for the year are exhausted, the program is paused until the following year.
Here is a series of informative videos designed to help you better understand the differences and similarities between the two programs. These videos contain information for homebuyers, lenders, and you… the real estate professional.
*NOTE: The content is updated as able. Please view the video content as an overview. Your lender will have the most current information, including amounts, rates, and processes.
*NOTE: The content is updated as able. Please view the video content as an overview. Your lender will have the most current information, including amounts, rates, and processes.
*NOTE: The content is updated as able. Please view the video content as an overview. Your lender will have the most current information, including amounts, rates, and processes.
*NOTE: The content is updated as able. Please view the video content as an overview. Your lender will have the most current information, including amounts, rates, and processes.
*NOTE: The content is updated as able. Please view the video content as an overview. Your lender will have the most current information, including amounts, rates, and processes.
Governor Hobbs’ Arizona Is Home – Mortgage Assistance Program initiative is a collaboration between the Arizona Department of Housing (ADOH) and the Arizona Industrial Development Authority (Arizona IDA). The Arizona IDA will target first-time homebuyers in rural counties. Eligible homebuyers will receive a below market 30-year fixed rate mortgage combined with 4% of down payment assistance. Eligible homebuyers must have annual incomes at or below 100% of the Area Median Income (AMI). The Program is available in the following Arizona Counties: Apache, Cochise, Coconino, Gila, Graham, Greenlee, La Paz, Mohave, Navajo, Pinal, Santa Cruz, Yavapai, and Yuma. The Arizona IDA offers the Arizona Is Home Program in all Arizona Counties except for Pima and Maricopa.
Eligible borrowers receiving assistance through the ARIZONA IS HOME program, are receiving the benefit of a lower mortgage interest rate than is customarily available on other mortgage loans. The Arizona IDA has sold tax-exempt mortgage revenue bonds (MRB) to a private investor who receives a lower interest rate on their investment than is customarily available on other investments. The investor buys the bonds because the interest earned is tax-exempt, which in turn creates the ability for us to offer a lower upfront interest rate for ARIZONA IS HOME homebuyers.
The ARIZONA IS HOME program, offered through the Arizona IDA, is available in all Arizona counties except Maricopa and Pima. If your homebuyer is looking to become a homeowner in either Maricopa County or Pima County, please review the Home+Plus program information to learn more about the Arizona IDA’s Home Plus DPA program, which offers assistance in every County, City, and zip code in Arizona.
– ARIZONA IS HOME program homebuyers will receive a below-market 30-year fixed-rate mortgage combined with 4% of down payment assistance. Here are important program highlights.
– The ARIZONA IS HOME program consists of a five-year, no-interest, no payment, deferred soft-second mortgage.
– The ARIZONA IS HOME DPA second mortgage is fully forgiven after the 60th month (5 years).
– The ARIZONA IS HOME DPA is based on 4% of the total first mortgage balance.
– The homeowner can choose to refinance or sell their ARIZONA IS HOME first mortgage at any time, however, if a refinance or sale occurs in the first 60 months, the DPA 2nd lien would need to be paid in full.
– The Arizona IDA does not subordinate or provide exceptions to the DPA repayment terms.The interest rates for the respective underlying first mortgage are set by the Arizona IDA and are the same for each program-approved participating lender.
– Closing costs can vary and are established by each approved participating lender.
One of the borrowers must complete a pre-purchase homebuyer education course prior to the loan closing. It is recommended the borrower completes this course as early in the process as possible as valuable information on the buying and borrowing process will be covered. The homebuyer education requirement may be met by taking a pre-purchase homebuyer education course through an Arizona Is Home/Home Plus Arizona approved online provider OR in person through a HUD certified homebuyer education provider.
Home Plus is here to make homeownership easier and more affordable! We offer a competitive interest rate along with up to 4% assistance for down payments and closing costs. No matter where you are in Arizona—whether in any county, city, or zip code—you can benefit from the Home Plus program.
We have both forgivable and non-forgivable options to suit your needs. Additionally, the Home Plus DPA program is available year-round and does not deplete its funding. Down payment assistance (DPA), such as Home Plus, is designed to help first-time homebuyers manage the upfront costs of buying a home, thereby removing one of the biggest hurdles to ownership.
The Home Plus program is available Statewide: all Counties, all Cities, all zip codes.
The Home Plus program is administered by the Arizona Industrial Development Authority (Arizona IDA), a nonprofit corporation and political subdivision of the State of Arizona, formed by the Arizona Finance Authority.
NO taxpayer funds are used for the Home Plus program. The program is self-funded from money raised in the national capital markets and income generated from our program operation.
The Home Plus program is continually funded without a sunset date.
Home buyers who access the Home Plus program receive, on average, $11,000 of Home Plus down payment assistance.
Program participants must work with an approved Home Plus mortgage lender. There is NOT a direct application from the home buyer.
There are three specific Home Plus program requirements:
An asset test is not part of program qualifications. If the home buyer has existing funds, they can use the Home Plus assistance and either:
One of the borrowers must complete a pre-purchase homebuyer education course prior to the loan closing. It is recommended the borrower completes this course as early in the process as possible as valuable information on the buying and borrowing process will be covered. The homebuyer education requirement may be met by taking a pre-purchase homebuyer education course through an Arizona Is Home/Home Plus Arizona approved online provider OR in person through a HUD certified homebuyer education provider.
Now that you’ve learned some key points and notable similarities of the various Arizona Down Payment Assistance Programs, it’s time to dive deeper and explore in greater detail to better understand each option and its specific benefits. This will help you better support your homebuyers and guide them to the DPA that works best for their situation.
