HOME Plus Program (Arizona Department of Housing)
The HOME Plus Program is Arizona’s most accessible and widely used DPA program, administered by the Arizona Department of Housing (ADOH). It is the starting point for most Arizona buyers exploring down payment assistance — available statewide, compatible with multiple loan types, and structured as a forgiven grant rather than a repayable loan.
Key Features
- Down payment assistance: 2%–5% of the first mortgage loan amount
- Form: Forgiven grant — non-repayable after 3 years of owner-occupancy. There is no second lien to pay back if you stay in the home.
- Eligible loan types: FHA, VA, USDA, Fannie Mae HFA Preferred (conventional), Freddie Mac HFA Advantage (conventional)
- Geographic eligibility: Statewide — all of Arizona, including Maricopa County and the East Valley
- Income limit: $122,100 household income for most Maricopa County areas (higher in some high-cost areas)
- Purchase price limit: Determined by loan type and area; typically consistent with loan conforming limits
- First-time buyer requirement: NOT required — repeat buyers can use HOME Plus if they meet other criteria and are purchasing a primary residence
- Credit score requirement: Typically 640+ minimum (varies by lender and loan type)
How the DPA Amount Works
The assistance amount ranges from 2% to 5% of the first mortgage loan amount, with higher assistance tiers available depending on income and loan product:
- 2%: Available for most qualifying buyers meeting the baseline criteria
- 3%–5%: Additional assistance available with slightly higher income requirements or specific loan products
FHA loan requires 3.5% down = $14,000. HOME Plus 3% assistance = $12,000 provided. Buyer’s out-of-pocket down payment reduced to just $2,000. At 5% assistance ($20,000), the DPA exceeds the FHA down payment requirement entirely — and excess can often offset closing costs.
The forgiven grant structure is what makes HOME Plus exceptional. It is not a second lien you repay over time — it is granted and forgiven after 3 years of owner-occupancy. No repayment, no balloon payment, no interest accruing on a silent second mortgage.
HOME Plus is genuinely underutilized by buyers who assume DPA programs mean inferior loan terms or long repayment schedules. The forgiven grant structure changes that calculation entirely. If you qualify on income and are buying a primary residence, there is almost no downside to combining HOME Plus with your FHA or conventional loan. The only requirement is using a HOME Plus-approved lender — which I can refer you to directly.
Pathway to Purchase Program
Pathway to Purchase is Arizona’s targeted DPA program for buyers purchasing in specific Arizona cities and census tracts that have been prioritized for revitalization investment. It offers significantly higher dollar assistance than HOME Plus — but in a different structure and with geographic restrictions.
Key Features
- Down payment assistance: Up to $20,000 — significantly higher than HOME Plus
- Form: Deferred second mortgage (not a grant — must be repaid when you sell, refinance, or after 30 years)
- Geographic eligibility: Designated Pathway to Purchase cities and census tracts (specific ZIP codes in Phoenix metro, Tucson, and other AZ cities — check ADOH’s website at azhousing.gov for current eligible areas)
- Income limit: Varies by household size and area; generally 80% of Area Median Income (AMI)
- Purchase price limit: Varies by area
- First-time buyer: Required for Pathway to Purchase
- Eligible loan types: FHA, VA, USDA
Pathway vs. HOME Plus: How to Choose
Pathway to Purchase offers much higher assistance ($20,000 vs 2%–5% of loan amount under HOME Plus) but comes with a deferred mortgage structure instead of HOME Plus’s forgiven grant. Here is how to think about the trade-off:
You want a clean, fully forgiven grant. You’re a repeat buyer (Pathway requires first-time status). You’re buying outside designated Pathway ZIP codes. You want the simplest possible structure — no deferred debt.
Forgiven After 3 YearsYou’re a first-time buyer purchasing in an eligible area. The $20,000 figure represents a larger benefit than 5% of your specific loan amount. You plan to stay long-term (30 years clears the deferred mortgage automatically).
Up to $20,000 AssistanceFor buyers purchasing in eligible areas, the $20,000 assistance is often more impactful than the smaller HOME Plus percentage — particularly on lower purchase prices. On a $250,000 purchase, HOME Plus 5% = $12,500; Pathway = $20,000. On a $450,000 purchase, HOME Plus 5% = $22,500 (now exceeds Pathway and is fully forgiven).
HOME Program — City-Level Assistance
The federal HOME Investment Partnerships Program funds a range of homebuyer assistance through ADOH and local government partners. In addition to the statewide programs, many individual cities administer their own HOME-funded programs:
- Phoenix, Mesa, Chandler and other cities have HOME-funded programs with their own criteria, income limits, and assistance amounts
- Form: Varies by program — grants, deferred loans, or forgivable loans depending on the city
- Availability: These are often small pools of funds that are quickly exhausted — first-come, first-served. Timing matters significantly.
- Where to check: Your specific city’s community development or housing department for city-specific programs
City-level HOME-funded programs are often the most generous per-dollar assistance available but also the most likely to be exhausted. If you’re purchasing in a specific East Valley city, it is worth asking Ryan about current city-level availability before assuming only statewide programs apply to your situation.
VA Loan — The Ultimate Zero-Down Option
For eligible veterans, active duty service members, and qualifying surviving spouses, the VA home loan remains the single best financing option available — not just among DPA programs, but across all mortgage products available to Arizona buyers.
- 0% down payment required on any eligible purchase (up to full entitlement)
- No private mortgage insurance (PMI) — ever. This saves $100–$250/month compared to FHA or conventional loans below 20% down.
- Competitive rates: VA rates typically run 0.25–0.5% below equivalent conventional rates
- VA Funding Fee: Typically 2.15% of the loan amount (can be financed into the loan); waived entirely for veterans with service-connected disability ratings
- No official credit score minimum, though most VA lenders require 580–620
VA loans cannot be combined with HOME Plus (you’re already at 0% down — there is no down payment to cover). But VA is so favorable that eligible buyers should always use VA first and foremost before considering any DPA program. The lifetime PMI savings alone (vs FHA) typically represent $30,000–$75,000 over a standard holding period. If you have VA eligibility, that is your program.
Arizona has a substantial veteran population served by Luke AFB (Glendale), Davis-Monthan AFB (Tucson), and Fort Huachuca (Sierra Vista). If you are purchasing in the East Valley and have VA eligibility, connect with Ryan to get a referral to a VA loan specialist — Navy Federal Credit Union and local VA-specialized lenders consistently offer the strongest VA products.
Combining DPA with FHA — The Most Common Arizona Buyer Strategy
The most common combination for first-time buyers and lower-down-payment buyers in Arizona is FHA + HOME Plus. Understanding how these interact — including the cost trade-offs — is essential before committing to this path.
How FHA + HOME Plus Works
- FHA loan: 3.5% minimum down payment, 580+ credit score, statewide availability
- HOME Plus grant: up to 5% provided — can cover the entire FHA down payment plus some closing costs
- Net result: a qualifying buyer can effectively purchase a home with zero out-of-pocket for the down payment
FHA 3.5% down payment required = $12,250. HOME Plus 5% assistance = $17,500 provided. Buyer net down payment = $0 (the DPA exceeds the required down payment, and the excess $5,250 can often be applied toward closing costs). Effective cash-to-close for a $350,000 purchase with this combination: as low as $3,000–$6,000 for remaining closing costs after DPA offset.
The FHA MIP Trade-Off
FHA loans carry Mortgage Insurance Premium (MIP), and this is the primary cost consideration buyers need to understand before defaulting to FHA:
- Upfront MIP: 1.75% of loan amount (typically financed into the loan, not paid at closing)
- Annual MIP: 0.55%–1.05% of the loan balance annually, depending on term and LTV
- On a $350,000 loan: annual MIP of approximately $1,925–$3,675/year ($160–$306/month added to payment)
- Critical: if your down payment is less than 10%, FHA MIP stays for the life of the loan unless you refinance into conventional when you reach 20% equity
Buyers who plan to stay in the home 5+ years and are unlikely to reach 20% equity quickly should evaluate whether a conventional loan with HOME Plus (using the Fannie Mae HFA Preferred or Freddie Mac HFA Advantage products) avoids lifetime MIP while still accessing DPA. This is a calculation worth running with your lender — and one Ryan can help facilitate.
Income & Purchase Price Limits (2026 Maricopa County)
The following table summarizes the key eligibility parameters for Arizona DPA programs as of 2026. Verify current limits with a HOME Plus-approved lender, as limits are updated annually and can change mid-year.
| Program | Income Limit | Purchase Price Limit |
|---|---|---|
| HOME Plus (2%) | $122,100 | $510,400 (FHA limit) |
| HOME Plus (3%–5%) | $122,100 | $510,400 FHA / $806,500 conventional |
| Pathway to Purchase | 80% AMI (~$73,650 for family of 4) | Varies by eligible area |
| VA (HOME Plus combo) | N/A — VA has no income limit | VA conforming limits apply |
“Household income” for DPA qualification includes all adults who will be on the loan. It does NOT typically include non-borrowing household members (such as a student child living at home). A household earning $118,000 with a non-borrowing adult child living there may still qualify. Always verify the exact income calculation methodology with your HOME Plus-approved lender before assuming you are over the limit.
How to Access Arizona DPA Programs
Not all lenders participate in HOME Plus or Pathway to Purchase. You must use a program-approved lender for the DPA to be available. A list of approved lenders is on the ADOH website (azhousing.gov/homeplus). Here is the exact process:
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Step 1 — Find a HOME Plus-approved lender. This is non-negotiable — a standard lender cannot access the program. Ryan Moxley can refer you directly to approved lenders with deep Arizona DPA experience. This single step eliminates the most common reason buyers miss out on DPA they qualify for.
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Step 2 — Apply for pre-approval with DPA stated at application. Tell the lender upfront you are seeking HOME Plus or Pathway to Purchase assistance. The DPA program must be established at the time of application — it cannot typically be added mid-process.
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Step 3 — DPA approval happens concurrently with loan underwriting. There is no separate lengthy approval process. Your loan and the DPA grant are underwritten together through the same approved lender pipeline. This keeps the timeline consistent with a standard 30–45 day purchase.
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Step 4 — DPA funds disbursed at closing. At closing, the DPA funds are disbursed directly by the program to cover the down payment and/or eligible closing costs. You do not receive the funds directly — they go straight to the transaction. After 3 years of owner-occupancy, the HOME Plus grant obligation is forgiven entirely.