One of the most common things I hear from first-time buyers is: “I just don’t have enough for a down payment.” And every time I hear it, I ask a follow-up question: “Have you looked at the programs available to you in Arizona?”
The answer is almost always no. Which means most first-time buyers are leaving real money on the table — money that was specifically designed to help them get into a home.
If you’re buying your first home in the Phoenix Metro, here’s a complete guide to every meaningful program available to you in 2026 — and what you need to know to actually use them.
Why First-Time Buyer Programs Exist
Down payment is the single biggest barrier to homeownership for most buyers. With Phoenix home prices averaging $400,000–$600,000 across much of the Metro, a traditional 20% down payment puts homeownership out of reach for millions of people.
State, county, and federal programs exist to close that gap. They come in the form of low-down-payment mortgages, down payment grants or forgivable loans, and interest rate assistance. Used correctly, they can reduce the cash you need at closing by tens of thousands of dollars.
Here’s what’s available in Arizona right now.
1. Home Plus AZ — Arizona’s Most Popular Assistance Program
What it is: The Home Plus program is offered through the Arizona Housing Finance Authority (AzHFA). It combines a 30-year fixed-rate mortgage with down payment assistance equal to 3–5% of the loan amount — provided as a gift (not a loan you repay).
How it works in dollars: On a $450,000 home with a 3% down FHA loan ($13,500 down), the Home Plus program can provide up to $22,500 in assistance — more than covering the required down payment and potentially contributing to closing costs.
Who qualifies:
- Must be a primary residence purchase (not investment property)
- Income limits apply — typically under $105,000 per year depending on loan type
- Purchase price limits apply — check current AzHFA guidelines, as they update periodically
- Minimum credit score required varies by loan type (620+ for conventional, 640+ for some programs)
- First-time buyer requirement varies — some Home Plus products are available to repeat buyers
What to watch: Home Plus funding can be exhausted. If you’re interested, connect with a lender who is approved to originate these loans sooner rather than later — not all lenders offer this program.
2. Pathway to Purchase
What it is: Arizona’s Pathway to Purchase program provides a forgivable second mortgage of up to 10% of the purchase price to help with down payment and closing costs, available in select Arizona cities and zip codes.
How it works: The assistance is provided as a second mortgage at 0% interest. If you stay in the home for a certain period (typically three years), the loan is forgiven entirely. If you sell or refinance before that, a portion must be repaid.
Who qualifies: Buyers in targeted communities — check the current AzHFA map for eligible zip codes. Income and purchase price limits apply.
3. FHA Loans — Low Down Payment, Flexible Qualification
What it is: FHA loans are federally insured mortgages offered by private lenders. They’re the most widely used low-down-payment loan product in the country.
Key features:
- Minimum 3.5% down payment with a 580+ credit score
- As little as 10% down with a credit score between 500–579
- More flexible debt-to-income ratio requirements than conventional loans
- Can be layered with Home Plus or other assistance programs
The trade-off: FHA loans require mortgage insurance premiums (MIP) — both an upfront fee and an annual premium. For many buyers, this is still the right call because the qualification is more accessible. As equity builds and credit improves, refinancing into a conventional loan later is always an option.
FHA loans work well for buyers who have steady income but limited savings or a credit history that conventional lenders would penalize.
4. VA Loans — The Best Loan in Real Estate for Eligible Veterans
If you’re a veteran, active duty service member, or surviving spouse, the VA loan benefit is the most powerful home-buying tool available anywhere — period.
Key features:
- Zero down payment required
- No private mortgage insurance (PMI)
- Competitive interest rates (often lower than conventional)
- Loan limits have been removed for most eligible borrowers
- Can purchase multi-unit properties (up to 4 units) as long as you occupy one
What buyers miss: Many eligible veterans don’t use this benefit because they don’t know they qualify or don’t understand how it works. Eligibility requires a Certificate of Eligibility (COE) from the VA — your lender can help you obtain this.
In Phoenix, VA loans are used regularly across the Metro, from starter homes in Mesa to move-up homes in Chandler and Gilbert. If you served, use this benefit.
5. USDA Loans — Zero Down in Qualifying Rural Areas
What it is: USDA Rural Development loans provide 100% financing (zero down payment) for buyers in qualifying rural and semi-rural areas.
In the Phoenix Metro, qualifying areas include parts of Queen Creek, San Tan Valley, Maricopa, and other communities on the edges of Maricopa County.
Key features:
- Zero down payment
- Competitive fixed interest rates
- Income limits apply — designed for low-to-moderate income buyers
- Property must be in an eligible rural area (use the USDA eligibility map)
- Must be a primary residence
The trade-off: USDA loans have geographic and income restrictions that not all buyers meet. But for buyers looking at Queen Creek or San Tan Valley who qualify, this is an excellent option.
6. Conventional Loans with 3% Down
Not all low-down-payment options require government backing. Fannie Mae and Freddie Mac offer conventional loan products — including HomeReady and Home Possible — with as little as 3% down for qualifying buyers.
Why conventional might beat FHA:
- No upfront mortgage insurance premium
- PMI can be removed once you reach 20% equity (FHA MIP is harder to eliminate on newer loans)
- Often preferred by sellers over FHA offers in competitive situations
Who qualifies: Credit scores of 620+ for basic conventional; 680+ unlocks better pricing. Debt-to-income ratios are stricter than FHA but more flexible than many buyers expect.
7. Maricopa County and City of Phoenix Programs
Both Maricopa County and the City of Phoenix have operated their own down payment and closing cost assistance programs, typically targeting lower-income buyers in specific areas.
These programs have more restrictive income limits and geographic requirements than state programs, and funding availability fluctuates year to year. I always recommend asking your lender to check current availability rather than assuming these programs are active at any given time.
What I Tell First-Time Buyers About Choosing a Program
The best program for you depends on three things: your credit score, your income, and the property you’re buying. There is no universal answer.
What I do tell every first-time buyer is this:
Use a lender who knows these programs cold. Not every lender participates in Home Plus or Pathway to Purchase. Not every lender understands how to structure FHA + assistance layering. Working with a lender who does this regularly — not one who has to look it up — makes a real difference in what options are on the table.
Don’t assume you don’t qualify. I’ve watched buyers rule themselves out before they even asked the question. Income limits are higher than most people expect, and purchase price limits in 2026 have been adjusted upward in some programs to reflect current market conditions.
Programs have funding limits. Home Plus and similar programs can exhaust their allocations before the year is over. If you’re interested, don’t wait.
I’ll connect you with lenders I trust. After 22+ years in this market, I’ve built relationships with local lenders who specialize in first-time buyers and know every program available. I’ll make sure you’re talking to the right people.
Getting into your first home in Phoenix is more achievable than most buyers think — especially when you know what’s available to you. Let’s find out exactly which programs you qualify for.
Call Mike at (480) 201-3700 or visit mikecaruso.com — let’s talk about your options.
Mike Caruso | HomeSmart Elite, Scottsdale AZ | 22+ years | 500+ homes sold | Solo agent — you always deal directly with me.
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