First Steps and Program Information


First Steps and Program Information

Home Plus New Home Owners

HOME+PLUS First Steps

HOME PLUS does not require a direct application from the home buyer. Selecting your lender is the first step in the process; your lender will be your point of contact throughout the mortgage process.  They will work with you to obtain a program qualifying mortgage and register you for HOME PLUS assistance. If you want to determine if you qualify for HOME PLUS assistance and the new underlying first mortgage, you’ll need to meet with an approved, participating lender.

It is advised that you read through the HOME PLUS information below, the Home Buyer Resources page, and the Frequently Asked Questions page, prior to contacting a lender. This will allow you to better understand the HOME PLUS program and determine any questions you may have. 

HomePlus - Arizona - Home Buyer Down Payment Program

How The Program Works

The HOME PLUS home buyer down payment assistance program is self-funded from funds raised in the national capital markets and income generated from our program operation. As such, the HOME PLUS program is continually funded without a sunset date.  Operating as a true public / private partnership, we can create a pathway to homeownership through the use of down payment / closing costs assistance WITHOUT the use of taxpayer funds.

Lenders & Loan Officers

While the Lender is approved under the HOME PLUS program, not every Loan Officer (LO) is knowledgeable and active in the HOME PLUS program. When contacting a Lender, ask to speak with a Loan Officer that is familiar with the HOME PLUS program*.

Decide who to work with based on the information you receive and the confidence you have in the Loan Officer*.

* If you are not satisfied with the Loan Officer’s knowledge, answers, guidance, and / or how they communicate with you, etc… end the conversation and call another Lender / Loan Officer. There are many experienced, helpful, and committed Loan Officers that are experts in the HOME+PLUS program who would gladly work with you. Click on the “Find A Lender” menu link to locate a Lender near you.

Lender Fees

  • Each Lender establishes their Lender fees, which can include processing fees, underwriting fees, and origination fees. These fees can vary lender to lender.
  • Some lenders charge an origination fee on HOME PLUS transactions while others do not. Origination fees are allowed but not a requirement of the HOME PLUS program.
  • What fees are charged, and the amount of those fees, are determined and established by each Lender.

Interest Rates

The interest rates for the respective underlying mortgages are set by the AZIDA (Arizona Industrial Development Authority) and can be slightly higher than the interest rate, should a buyer use their own funds for the down payment and closing costs.  Furthermore, there is a different interest rate for each down payment assistance option. 

As you and your lender discuss your situation, these different DPA options, combined with the different loan-to-value structures and the mortgage insurance premiums, should be reviewed. 

Fannie and Freddie products offers minimum mortgage insurance coverage that is lower than mortgage insurance coverage outside of the DPA program, which offsets most of the interest rate differential.  Your lender should be able to provide you the interest rate and PITI payment (including mortgage insurance) comparisons between the HOME PLUS program and a standard mortgage in which you provide the down payment and closing costs.  You can then determine your best course of action.

Pre-Purchase Homebuyer Education

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 a HOME PLUS approved online provider OR in person through a HUD certified homebuyer education provider.  Click here to download information and the list of approved providers.  

Terms & Conditions of the Home Plus DPA

The DPA assistance under the HOME PLUS program is provided in the form of a second mortgage with the following terms/conditions:

  1. Three-year, no interest, no payment, deferred soft second mortgage, forgiven monthly at a rate of 1/36 over the term of the lien.
  2. The DPA second mortgage is fully forgiven after the 36th month (3-years).
  3. The homeowner can choose to refinance or sell their HOME PLUS first mortgage at any time, however, if a refinance or sale occurs in the first 36 months, the DPA 2nd lien would need to be paid (note amount less the number of forgiven months from closing date).
  4. AzIDA does not subordinate or provide exceptions to the DPA repayment terms. 

Home Plus Product Information (Product Matrix)

First Mortgage Type Down Payment / Closing Cost Assistance Minimum Credit Score (a) Maximum Borrower/s Income (b) Maximum DTI (c) Maximum LTV/CLTV (d)
FHA 3%, 4%, 5% 640 $122,100 50% 96.50%
FHA – Manufactured Home 3%, 4% 680 $122,100 45% 96.50%
FHA – US Military Only 5% 640 $122,100 50% 96.50%
Freddie Mac HFA Advantage – under 80% AMI 0%, 3%, 4%, 5% 640 Note (1) 50% 97% / 105%
Fannie Mae HFA Preferred – under 80% AMI 0%, 3%, 4%, 5% 640 Note (1) 50% 97% / 105%
Fannie Mae HFA Preferred – under 80% AMI Manufactured Home 4%, 5% 680 Note (1) 45% 95% / 105%
Fannie Mae HFA Preferred – over 80% AMI 3%, 4% 640 $122,100 50% 97% / 105%
Fannie Mae HFA Preferred – over 80% AMI Manufactured Home 3%, 4% 680 $122,100 45% 95% / 105%
 Fannie Mae HFA Preferred – US Military Only over 80% AMI 5%  640  $122,100  50%   97% / 105%
VA 3% 640 $122,100 45% 100%
USDA - RD 2% 640 $122,100 45% 100%
HPAZ Matrix for Mobile - v01202023a3
Notice: Arizona IDA HOME Plus approved participating lenders may not offer all mortgage types listed above. Please read the Q/A “Can you recommend a mortgage lender to use?” section within the Frequently Asked Questions for guidance when interviewing a lender to work with.


Note (1) Varies by County. 

(a) Minimum Credit Score: If your credit score falls below the minimum program requirements, you are not currently eligible for the HOME PLUS program. However, many of our pre-purchase homebuyer counseling agencies and mortgage lenders provide credit repair services. You may want to reach out to them if you cannot currently qualify for the new underlying first mortgage. Click Here To Read More and Find Credit Resources

(b) Maximum Borrower’s Income: The HOME PLUS income limit is based on the borrower’s pre-tax gross income calculated by lenders 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 will need to meet with an approved, participating lender to determine what your final income figures will be. Click Here To Find A Lender Near You

(c) Maximum Debt-to-Income Ratio: the standard definition is: Your debt-to-income ratio is all your monthly debt payments divided by your gross monthly income. This number is one-way lenders measure your ability to manage the payments you make every month to repay the money you have borrowed. There are variables to this, and we suggest you speak with your lender to determine your actual DTI ratio. For DTI’s between 45.01% and 50.0% the minimum credit score is 680.

(d) Maximum Loan-to-Value: The difference between the purchase price of your new home and the loan-to-value, is the required down payment.  This figure does not include closing costs.  Your Realtor or mortgage lender can provide great detail based on your specific situation.

Maximum Borrower Income Chart By Arizona County

HPAZ County Limits for Mobile - v01202023a3
APACHE COUNTY $122,100 $44,320 $122,100 $44,320 $122,100 $122,100
COCHISE COUNTY $122,100 $51,600 $122,100 $51,600 $122,100 $122,100
COCONINO COUNTY $122,100 $68,160 $122,100 $68,160 $122,100 $122,100
GILA COUNTY $122,100 $45,760 $122,100 $45,760 $122,100 $122,100
GRAHAM COUNTY $122,100 $52,880 $122,100 $52,880 $122,100 $122,100
GREENLEE COUNTY $122,100 $57,360 $122,100 $57,360 $122,100 $122,100
LA PAZ COUNTY $122,100 $44,320 $122,100 $44,320 $122,100 $122,100
MARICOPA COUNTY $122,100 $71,040 $122,100 $71,040 $122,100 $122,100
MOHAVE COUNTY $122,100 $50,480 $122,100 $50,480 $122,100 $122,100
NAVAJO COUNTY $122,100 $44,320 $122,100 $44,320 $122,100 $122,100
PIMA COUNTY $122,100 $64,880 $122,100 $64,880 $122,100 $122,100
PINAL COUNTY $122,100 $71,040 $122,100 $71,040 $122,100 $122,100
SANTA CRUZ COUNTY $122,100 $44,320 $122,100 $44,320 $122,100 $122,100
YAVAPAI COUNTY $122,100 $60,960 $122,100 $60,960 $122,100 $122,100
YUMA COUNTY $122,100 $45,760 $122,100 $45,760 $122,100 $122,100

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Home Plus New Home Owners

Home Buyer Resources

To help you better prepare for buying your new home, HOME+PLUS has put together a list of resources and information from local, state, and national organizations.

Frequently Asked Questions

We have put together a list of questions and answers to help you better understand the HOME+PLUS home buyer down payment assistance program.