Most Frequently Asked By Homebuyers Like You.
The following are current trends that our program participants are using to augment their savings and compete in today’s real estate market.
Use DPA…
Yes. It will, however, require the buyer to contribute some of their own funds.
EXAMPLE:
Purchase Price: $310,000
Appraised Price: $300,000
FHA Loan Amount: $289,500
Gap Between Prices: $20,500
4% DPA Assistance: $11,580
Borrower’s funds needed: $8,920
No. Our DPA programs do not have or require the homebuyer to work with a program-approved Realtor / Real Estate Agent; you can work with any agent you choose.
No. Unfortunately, we cannot steer or direct you to a specific lender. When contacting our program-approved lenders, keep the following in mind:
While the Lender is approved under our programs, not every Loan Officer (LO) is knowledgeable or actively involved in the Home Plus and Arizona Is Home DPA programs.
When reaching out to a Lender, ask to speak with a Loan Officer knowledgeable about the Home Plus and Arizona Is Home programs.
Inform the Loan Officer about the purpose of your call and that you are interested in using the Home Plus or Arizona Is Home down payment assistance program. Ask how many loans they have processed in the past 6 months or the past year for either of the two DPA programs.
Each Lender sets their own Lender fees. These fees can differ significantly between Lenders. Ask if they charge an origination fee for Home Plus and/or Arizona Is Home transactions, and if so, how much. Origination fees are not a requirement of these programs, but a choice each Lender makes.
Decide who to work with based on the information you receive and how much confidence you have in the Loan Officer.*
*If you’re not satisfied with the Loan Officer’s knowledge, answers, guidance, or communication style, end the conversation and contact another Lender or Loan Officer from our list. Many experienced and dedicated Loan Officers are experts in these programs and would be happy to work with you.
No. The DPA programs offered allow homebuyers to purchase either new or existing single-family homes, townhomes, condos, or manufactured homes.
Please speak with your Lender regarding multi-unit properties.
If the new underlying first mortgage is a Fannie Mae or Freddie Mac mortgage with a down payment of less than 20%, mortgage insurance is required.
For Fannie Mae and Freddie Mac products, the minimum mortgage insurance coverage mandated by the charter can be significantly lower than the coverage required outside of these programs.
Your lender should be able to provide you with interest rate and mortgage payment comparisons, including mortgage insurance, between the DPA program options and a standard mortgage where you cover the down payment and closing costs. This will help you decide the best course of action.
You do not have to be a current renter or a first-time homebuyer to qualify for the Home Plus program; however, owning other real estate may restrict the number of available program options available to you.
Since every homebuyer situation is unique, the lender you choose to work with can give you more clarity on your specific situation.
Yes. The homebuyer can use the assistance and either:
(1) keep their current funds in savings or
(2) combine their current funds with the assistance.
We promote sustainable home ownership, and providing options to retain money in the bank or lower the mortgage balance further improves affordability.
Homebuyers entering DPA programs must have sufficient income, a stable job history, and a credit score that meets the requirements for the new underlying first mortgage.
Each underlying mortgage type —Fannie Mae, Freddie Mac, FHA, VA, and USDA —can have slightly different credit qualification guidelines, and the lender you choose to work with can provide more clarity on your specific situation.
If your credit score falls below the minimum program requirements, you are not currently eligible for the DPA programs offered. However, many of our pre-purchase homebuyer counseling agencies and mortgage lenders provide credit repair services. You should contact them if you are currently unable to qualify for the new underlying first mortgage due to credit issues.
The programs do not require a direct application from the homebuyer. Selecting your lender is the first step in the process, as they will be your primary point of contact throughout the process. They will work with you to obtain a program-qualifying mortgage and register you for DPA assistance.
To determine if you qualify for assistance and a new underlying first mortgage, you’ll need to meet with an approved, participating lender. Visit our “Find A Lender” page to find a lender near you.
HOME PLUS:
The Home Plus program is a true public-private sector partnership. We raise funds in the national capital markets and form partnerships with lending institutions to deliver the Home Plus program throughout the State. NO taxpayer funds are used for the Home Plus program.
ARIZONA IS HOME:
Arizona Is Home is funded….
HOME PLUS:
The Home Plus income limit is based on the borrower’s pre-tax, gross income, as calculated by the lender and used for the approval of the new underlying first mortgage. If your income is close to the program limit or you want to determine your qualifying income for the mortgage, you’ll need to meet with an approved, participating lender to determine your final income figures.
ARIZONA IS HOME:
The Arizona Is Home income limit is
The income limit is based on “borrower” income, not “household” income. If your parent will be a borrower on the new underlying first mortgage, the income is counted. If your parent will NOT be a borrower on the new underlying first mortgage, the income is NOT counted.
The Arizona IDA sets the interest rates for the respective new underlying first mortgages, and these rates are the same regardless of which program-approved participating mortgage lender you use.
If you don’t feel that the lender is answering your questions to your liking, please don’t hesitate to get in touch with a different approved lender from our Find A Lender page.
The interest rate on the new underlying first mortgage through the Arizona IDA may be slightly higher than the interest rate a homebuyer would pay if they used their personal funds for the down payment and closing costs.
For Fannie and Freddie products, the charter minimum mortgage insurance coverage is lower than the mortgage insurance coverage outside of the Home Plus program, which offsets most of the interest rate differential.
Your lender should be able to provide you with interest rates and full PITI mortgage payments (including mortgage insurance) comparisons between the Arizona IDA programs and a standard mortgage in which you provide the down payment and closing costs.
The mortgage lender has ten days from the interest rate lock date to finalize ALL aspects of the new underlying first mortgage. If the mortgage is not completed within ten days, the interest rate lock should not occur. It is the lender’s responsibility to manage each stage of the process and to communicate and coordinate with the homebuyer and real estate agent accordingly.
The homebuyer can sell at any time. If, however, a sale occurs before the forgiveness period is up, the Arizona IDA second lien would need to be paid. We do not grant exceptions to the repayment terms.
The homebuyer can refinance at any time. If, however, a refinance of the first mortgage occurs before the forgiveness period is up, the Arizona IDA second lien would need to be paid. We do not subordinate our lien to accommodate a refinance.
The current balance of the Arizona IDA Home Plus Assistance is included on your monthly statement. For liens on or after April 1, 2025, the statement will be from The Money Source (TMS). For liens on or before March 31, 2025, the statement will be from US Bank and the balance listed as RCA: Recoverable Corporate Advance
We hope you found some answers to some of your questions regarding your path to homeownership. We know you have more…
If you have already reviewed our DPA program dedicated pages, it’s time for you to find an approved lender in your area. Or, click any of the other links to learn more.
