Owning a Home in Arizona with Down Payment Assistance

For many first-time homebuyers, coming up with the money for a down payment can be difficult. Down payment assistance programs provide homebuyers with the funds for their down payment to make their home purchase possible. There are a number of down payment assistance programs in Arizona, finding the right one shouldn’t be too difficult with this guide and our help.  

What is Down Payment Assistance? 

Down Payment Assistance (DPA) provides the funds needed for a down payment or closing costs on a home purchase in the form of gift funds, grants, or low-interest loans. These funds come from several sources including the federal, state, county, and city government agencies and even charities.  Each program will have varying qualifications of eligibility for prospective applicants and requirements for the purchase. Typically, these programs are intended for first-time homebuyers, those in the low to moderate income range, those looking for FHA down payment assistance.  

Types of Down Payment Assistance:

There is not a one-size-fits-all DPA, but they all serve to reduce the amount a homebuyer has to come up with on their own for their down payment. Types of down payment assistance include:
  •     Grants – This is a gift that never has to be repaid.
  •     Loans (second mortgages) – Pay this back on top of the monthly mortgage payment.
  •     Loans (second mortgages) – these payments are deferred for the first little bit, pay back the loan when the property os sold or refinanced.
  •     Loans (second mortgages) – This loan is forgiven over a set number of years (often 5, but up to 15 or 20). The only reason to repay this loan is if the property is sold or refinanced within the set number of years.

Arizona Down Payment Assistance Programs: 

This program is a second mortgage with no interest, no payments, and is forgiven after three years. It provides DPA between 3 and 5%, with an additional 1% is available to qualified Veterans, active duty Military, active Reservists, and active National Guard members. It is not required to be a first-time homebuyer for this loan.   The nonprofit corporation Arizona Industrial Development Authority (Arizona IDA) provides DPA ranging from 0% – 5% of the first mortgage. This assistance is a second mortgage with no interest and no payments to be fully forgiven after three years. The DPA can be used toward the down payment and closing costs.   This program provides DPA to homebuyers purchasing a primary residence in targeted housing markets that have been hardest hit by foreclosures. The P2P program provides a second mortgage equal to 10% of the purchase price that can be used towards closing costs or a down payment. This second mortgage is a five–year forgivable lien against the subject property at a 0% interest rate and no required monthly payments.   Eligible borrowers receive DPA funds up to 3, 4, or 5% of the loan amount and are available to both first-time and repeat homebuyers. This amount can be put toward the down payment, closing cost, or prepaid items. There is no repayment or recapture tax associated with this assistance.   

Apply Now! 

Down payment assistance programs are a great resource for homebuyers in need of support for life’s most important purchase. At Spire Financial, our loan experts can help find the Down Payment Assistance in Arizona you need for a home purchase.

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V.I.P. Mortgage, Inc. DBA Spire Financial does Business in Accordance with Federal Fair Lending Laws. NMLS ID 145502. For state specific licensing, visit www.vipmtginc.com/national-licenses/. V.I.P. Mortgage, Inc. is not acting on behalf of or at the direction of the FHA/HUD or the Federal Government. This product or service has not been approved or endorsed by any governmental agency, and this offer is not being made by any agency of the government. V.I.P. Mortgage, Inc. is approved to participate in FHA programs but the products and services performed by V.I.P. Mortgage, Inc. are not coming directly from HUD or FHA. Information, rates, and programs are subject to change without notice. All products are subject to credit and property approval. Not all products are available in all states or for all loan amounts. Other restrictions may apply. This is not an offer to enter into an agreement. Not all customers will qualify.

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