Home Plus Autumn 2026 DPA Lender Update

HOME PLUS AUTUMN 2026 DPA LENDER UPDATE

Industry Insights • Lender Resources • Stronger Partnerships • More Pathways to Homeownership

 

A MESSAGE TO OUR LENDING PARTNERS

As we head into the final months of 2026, we want to begin with something simple: Thank you.

Every Home Plus and Arizona Is Home transaction begins with a lending professional willing to understand a borrower’s story, explore available options, and help determine whether homeownership is within reach.

Your partnership allows Arizona IDA’s programs to reach homebuyers and communities throughout our state, and we are incredibly grateful for the work you do.

Our goal is to be more than another DPA program in your product menu. We want to be a resource and a partner you can leverage – for borrower scenarios, program questions, education, training, REALTOR® outreach, and navigating an industry that continues to change.

With that in mind, here are a few mortgage industry developments we’re watching this fall – and why they may matter to you and the borrowers you serve.

 

MORTGAGE INDUSTRY UPDATE

UAD 3.6: The November Transition Is Approaching
One of the mortgage industry’s biggest appraisal-reporting transitions is almost here.

Fannie Mae and Freddie Mac’s UAD 3.6 and redesigned appraisal reports have been in Broad Production since January, allowing lenders to transition their workflows ahead of the mandate.

Beginning November 2, 2026, all new appraisal reports submitted through UCDP must use UAD 3.6. The GSEs are encouraging lenders to prepare their systems, appraisal partners and workflows before the mandate.

Why are we talking about appraisal changes in a DPA newsletter?
Appraisals, underwriting, agency requirements, property eligibility, documentation and timing all affect whether a homebuyer ultimately makes it to the closing table.

We want our lending partners to know that Arizona IDA is paying attention to the same industry changes you are. And when the transaction involves Home Plus or Arizona Is Home, you don’t have to navigate the DPA piece alone.

Bring us into the conversation.

 

MORTGAGE INDUSTRY UPDATE

Looking Ahead: Condo Financing Changes for 2027
Another change worth having on your radar involves condominium project eligibility.

For applicable conventional mortgage applications beginning in January 2027, updated project-review requirements will increase the minimum replacement-reserve allocation for certain condominium projects.

For loan officers working with condominium buyers, changes in project eligibility are worth identifying early. A borrower may qualify beautifully while the project itself creates a challenge later in the transaction.

And here’s your Home Plus reminder: Condominiums can be eligible for Home Plus.
Eligibility remains subject to applicable agency, program, lender and project requirements, but a condominium doesn’t automatically mean DPA is off the table.

Sometimes expanding homeownership isn’t about finding an entirely different product. It’s about knowing how to leverage the tools already available to you.

Have a condo scenario? Send it our way.

 

MORTGAGE INDUSTRY UPDATE

Freddie Mac Expands Eligibility for Certain Relocated Manufactured Homes
Freddie Mac recently updated its manufactured-housing guidelines to expand eligibility for certain manufactured homes that have been relocated from a previous site, including eligible single-wide manufactured homes.

This change may create additional conventional financing opportunities for properties that previously may not have met Freddie Mac requirements.

What does this mean for Arizona IDA DPA programs?

TMS, our master servicer, has confirmed that it is aligned with Freddie Mac guidelines.
Arizona IDA does not impose an additional manufactured-housing overlay regarding relocation. Therefore, an eligible manufactured home meeting applicable Freddie Mac requirement may also be eligible for financing through Home Plus, subject to all applicable program, lender and master-servicer requirements.

As agency guidelines evolve, we encourage our lending partners to continue bringing Home Plus into conversation when evaluating financing options for their borrowers.

More eligible housing options can mean more potential pathways to homeownership for Arizona families.

 

MORTGAGE INDUSTRY UPDATE

VantageScore 4.0: TMS Implementation Update
The mortgage industry continues preparing for the implementation of VantageScore 4.0, and TMS has provided an important update for our participating lenders.

Beginning October 12, 2026, TMS will accept VantageScore 4.0 for applicable government agency loans.

TMS has advised that it remains aligned with agency guidelines and implementation timelines. Acceptance for conventional loans is still being finalized, and we will share additional information with our lending partners as it becomes available.

What should lenders know?

For now, continue following applicable agency requirements and current Home Plus/TMS guidance for your loan type.

Government loans: VantageScore 4.0 acceptance begins October 12, 2026.
Conventional loans: Additional guidance is forthcoming.

We’ll continue monitoring the transition with TMS and keep our participating lenders informed as implementation evolves.

Staying ahead of industry changes – Ready to support your efforts.

 

AFFORDABILITY + DPA

Affordability Is Challenging. Let’s Keep Looking for Solutions.
Today’s homebuyers are navigating much more than the purchase price. Down payment, cash-to-close, monthly payment and overall purchasing power can all influence whether a buyer feels ready to purchase – or decides to wait.

That’s why we believe down payment assistance deserves to be part of the affordability conversation.

Home Plus gives our participating lenders another tool to explore with eligible Arizona homebuyers:

✓ Minimum FICO beginning at 620
✓ FHA, VA, USDA and Conventional options
✓ No Arizona IDA DTI overlay
✓ No Arizona IDA LLPAs AKA Rate adjusments
✓ Multiple assistance structures
✓ Home Plus 0% assistance option available that could allow your lower FICO borrowers obtain a much lower rate.
✓ Statewide availability
✓ No first-time home buyer requirement, if borrower already owns another home, refer to applicable agency guidelines.

Not every borrower will fit every program – and that’s okay. Our mission is to help create pathways to sustainable homeownership.

Sometimes the best thing we can do together is look at the scenario before assuming the answer is no.

 

DESIGNED TO EMPOWER OUR LENDING PARTNERS

DPA Should Work With Your Lending Process
We believe DPA should work with your lending process, not create another unnecessary layer within it.

Arizona IDA does not separately underwrite or approve the borrower’s mortgage loan. We rely on our participating lenders and their underwriting processes to determine loan approval in accordance with applicable agency, investor, master-servicer and program requirements.

You know your borrower. You understand the transaction. You already have an underwriting process in place.
Our role is to provide the program, resources, education and support you need to confidently put those pieces together.

YOU ORIGINATE.
YOU UNDERWRITE.
YOU SERVE YOUR BORROWER.
WE SUPPORT YOU WITH THE DPA.

That’s what partnership should look like.

 

VOICE OF THE LENDER

Real Scenarios. Real Solutions. Real Paths to Homeownership.
Some of the most valuable insight we receive comes directly from the loan officers using our programs.

This month, Guadalupe Valencia, Loan Officer with Castle & Cooke Mortgage, shared how Home Plus helped her find a solution for one of her buyers:

“My buyer needed some additional assistance to make homeownership possible, and the program allowed us to structure the loan in a way that worked within their financial situation while still getting them into the home they wanted.”

“Having Home Plus as an option allows me to serve more borrowers and think outside the box when putting a loan together.”

“Ultimately, being able to tell my borrower, ‘Yes, we can make this work,’ and help them become a homeowner was the best part of the transaction.”

Guadalupe Valencia
Loan Officer | Castle & Cooke Mortgage

This is why our lending partnerships matter.
Have a success story to share? Send it my way!

Every program guideline, industry update and resource ultimately comes back to the same mission: giving our lending partners more tools to help Arizona families pursue sustainable homeownership.

Thank you, Guadalupe, for sharing your experience – and to all of our participating lenders for the work you do every day.

 

THINK OF ARIZONA IDA AS AN EXTENSION OF YOUR TEAM

You Don’t Need to Memorize Every Guideline.
That’s what we’re here for.

Have a borrower you’re unsure about? Send us the scenario.

Have loan officers who haven’t used Home Plus recently? Let’s schedule a refresher.

Have a new team member? We’ll help them understand the programs.

Seeing a recurring challenge in your market? Tell us about it.

Planning a REALTOR® or homebuyer education event? Let’s talk about how we can support it.

Our partnership doesn’t begin when you reserve a loan – and it doesn’t end when the transaction closes.

The easier we make it for our lending partners to confidently use our programs, the more Arizona families we can help together.

 

LET’S HELP MORE ARIZONANS FIND THEIR WAY HOME

Thank you again for your continued partnership with Arizona IDA and for the work you and your teams do every day on behalf of Arizona homebuyers.

Whether you need a second set of eyes on a scenario, program education for your team, resources for a REALTOR® partner, or simply someone to call with a question: We’re here.

Let’s continue working together to expand access to sustainable homeownership throughout Arizona.

 

Questions?

CHRISTIAN HERNANDEZ
Business Development Officer
Housing & Community Development Advocate
Arizona Industrial Development Authority
Direct: 602-799-5931
Email: christian.hernandez@arizonaida.com
Website: HomePlusAz.com

Program eligibility and assistance are subject to applicable Arizona IDA program guidelines, agency requirements, lender underwriting, master-servicer requirements and program availability. This communication is intended for lending professionals and is for informational purposes only.

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