AzIDA and our HOME Plus DPA program is open for business.

AzIDA, as well as our primary program partners, Hilltop Securities (capital markets) and US Bank (master service) have already implemented business continuity plans to include cross department coverage and remote, work from home operations. We don’t anticipate, nor have we had any, delays in service, disruptions on purchases or funding issues.

Up to the minute market challenges.

With the unprecedented COVID-19 situation we did experience some instability within the capital markets during the month of March. We are back to a more normalized market and all HOME Plus DPA options are available.

The new challenge mortgage lenders are faced with relates to the forbearance policy within the federal government’s new Coronavirus Aid, Relief, and Economic Security Act (CARES Act). As lenders analyze the effect this will have on their total business operation, they are making difficult choices on the programs they are offering. Some lenders are placing a temporary hold on Fannie & Freddie mortgages, manufactured home lending, and or down payment assistance programs. This is an internal decision they have made and does not reflect upon the strength and stability of AzIDA and the HOME Plus program. We will welcome them back when they decide to return.

Be informed!

Please feel free to reach out to AzIDA HOME Plus if you have questions or concerns and let us provide you with the correct information directly. With so much uncertainty during this global health crisis, we want to ensure our partners are accurately informed about our operations.

Thank you,

Be safe. Together we’ll get through this.
Dirk Swift

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Arizona Home Buyer Down Payment Assistance

offering home buyer down payment and closing costs assistance

What’s Better… A Large Down Payment or More Money in the Bank? - Home Plus Arizona DPA Program

What’s Better… A Large Down Payment or More Money in the Bank?

Buying a home is likely the biggest purchase you’ll make in your lifetime. There’s a reason why people joke they feel “house poor” when they leave the closing table. Too often, the burden of the down payment leaves homebuyers’ cash reserves empty.

And, new data shows that can be a recipe for financial stress.


Research by the JPMorgan Chase Institute flips the script on homebuyer risk. It turns out that having a cash cushion trumps a big down payment.

Historically, a big down payment is associated with lower risk, but the report found that liquidity — having at least three months of mortgage payments available — is a better measure of homeownership success. In fact, borrowers with less than one month of mortgage payment reserves defaulted at a rate five times higher than borrowers who had three and four months of mortgage payments available.


Homebuyers have an incentive of securing a lower interest rate to try and stretch to make a larger down payment. But, is it really the best for long-term success?

The short answer is no. Don’t make a big down payment at all costs.

The report found that borrowers with little liquidity but more equity (made a larger down payment) defaulted at considerably higher rates than borrowers with more liquidity but less equity (made a smaller down payment). Further, default was preceded by a drop-in income regardless of the homeowner’s equity, income level, or payment burden.


The report’s findings suggest that a policy or program encouraging borrowers to make a slightly smaller down payment and use the residual cash to fund an “emergency mortgage reserve” account might lead to lower default rates.

The good news is that many down payment assistance programs available today can help you do just that. You may be able to combine an affordable first mortgage with a down payment assistance program. It can help you to come to the closing table without wiping out your bank account.


We’re here to help. The HOME+PLUS program provides down payment and closing cost assistance to qualified home buyers throughout Arizona.

For the HOME+PLUS program, an asset test is not part of the program qualifications. If the home buyer has existing funds, they can keep those funds in savings and use the HOME+PLUS assistance for their down payment and/or closing cost.

We promote SUSTAINABLE home ownership, and allowing a home buyer to retain cash reserves and still use HOME+PLUS assistance further improves affordability and long-term home ownership success.

For more information regarding the HOME+PLUS program, including first steps, approved lenders and program requirements please visit either www.homeplus.az.gov or www.homeplusaz.com

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