Buying a home in Arizona without a down payment sounds like a dream. But here’s the thing — it’s actually possible for many buyers. Arizona has some solid programs that can either wipe out your down payment completely or bring it down to almost nothing. Let me show you how it works.
What Are Arizona No-Down-Payment Programs?
Why Down Payment Help Matters in Arizona
Arizona home prices have climbed fast. As of early 2025, the median home price in the state was around $455,100, which is well above the national average. That means even a 3% down payment comes to over $13,000 — and a 5% down payment is more than $22,000. For a lot of families, that’s money they simply don’t have sitting around.
That’s exactly why these programs exist. The state of Arizona, along with local and federal agencies, has created tools to help buyers who are ready to own a home but just haven’t been able to save a big chunk of cash upfront.
Who Qualifies as a First-Time Buyer in Arizona?
Like most states, Arizona defines a first-time homebuyer as someone who has not owned a home as their primary residence in the past three years. That’s the standard rule used by most state and federal programs. Some programs, like Home+Plus, don’t even require you to be a first-time buyer — which is great if you’ve owned before but still need help with the down payment.
Arizona Home+Plus: The Most Widely Used Program
How Home+Plus Works
The Home+Plus program is run by the Arizona Industrial Development Authority (Arizona IDA) and is available statewide. It pairs a 30-year fixed-rate mortgage (conventional, FHA, VA, or USDA) with down payment and closing cost assistance of up to 4% of the loan amount.
The assistance comes as a no-interest, no-payment second mortgage that is forgiven over time. If you stay in the home without refinancing for five years, the second mortgage is completely forgiven. You don’t pay it back. According to the Arizona Department of Housing, programs like Home+Plus are designed to help working families across the state achieve homeownership regardless of how much they’ve saved.
There is no first-time buyer requirement. You can buy anywhere in Arizona. And the income limit as of 2025 is generous — up to $136,609 for buyers above 80% of area median income.
Home+Plus Loan Types and Down Payment Options
Here’s a breakdown of the main Home+Plus options:
| Loan Type | Down Payment Assistance | Min Credit Score | Notes |
|---|---|---|---|
| Conventional (Fannie Mae) | 3%–5% | 640 | No PMI removal restriction |
| Conventional (Freddie Mac) | 3%–5% | 640 | Home Possible program base |
| FHA Loan | Up to 5% | 640 | Popular with lower credit buyers |
| VA Loan | Up to 5% (+ 1% extra for veterans) | 640 | Best for military buyers |
| USDA Loan | Up to 5% | 640 | Rural areas only |
One thing I really like about Home+Plus is that active military members and veterans get an extra 1% in down payment help on top of the standard amount. So a veteran using a VA loan could potentially get up to 6% in assistance — more than enough to cover both the down payment and closing costs on most homes.
Arizona Is Home: Help for Rural Buyers
What the Arizona Is Home Program Offers
The Arizona Is Home program was launched by Governor Katie Hobbs in April 2024 with $13 million in funding. It’s a first-time buyer program that offers down payment assistance for buyers in rural counties (everywhere except Maricopa and Pima), and has since expanded to include parts of those counties too.
Buyers at or below 80% of area median income could receive up to $30,000 in assistance. Buyers between 81% and 120% of AMI could receive up to $20,000. This is a deferred payment loan that is forgiven after five years if you stay in the home.
According to the National Council of State Housing Agencies 2025 report, Arizona Is Home helped over 524 households statewide and is considered a model for how state programs can effectively combine public and private funding to expand homeownership.
Pima/Tucson Homebuyer’s Solution
If you’re buying in the Tucson or Pima County area, there’s a separate program called the Pima Tucson Homebuyer’s Solution. It works very similarly to Home+Plus, with down payment and closing cost assistance available across all of Pima County. There’s no purchase price limit outside of the loan program’s own limits, which in 2024 was $498,257 for FHA in Pima County.
Federal No-Down-Payment Loan Programs in Arizona
VA Loans: Zero Down for Military and Veterans
If you’ve served in the U.S. military or are currently active duty, a VA loan is one of the best financial tools you’ll ever have access to. No down payment required. No private mortgage insurance. And you can combine it with Home+Plus to cover closing costs too, so your out-of-pocket costs on closing day can be as close to zero as possible.
I’ve always thought the VA loan is genuinely one of the most underutilized benefits available to veterans. Many people don’t know they qualify, or they think the process is too complicated. It’s actually quite straightforward once you get a VA-approved lender involved.
USDA Loans: Zero Down in Rural Arizona
The USDA Rural Development loan is another zero-down option for Arizona buyers in eligible areas. Large parts of Arizona outside Phoenix, Tucson, and Flagstaff qualify. Income limits apply, and you must be buying a property in a USDA-designated rural zone.
According to the U.S. Department of Housing and Urban Development (HUD), federal loan programs including USDA are designed to create homeownership access in areas where traditional lending is often unavailable or too expensive for working families.
How to Qualify for Arizona No-Down-Payment Programs
Key Requirements for Most AZ Programs
Most Arizona down payment assistance programs share similar requirements. Here’s what you need to know before you apply:
- Credit score: Minimum 640 for most programs (including Home+Plus and Arizona Is Home)
- Income limits: Vary by program and county; most are capped at 80%–120% of area median income
- Primary residence: You must live in the home you’re buying; investment properties don’t qualify
- Debt-to-income ratio: Maximum 45% for most programs (50% if credit score is 680+)
- Homebuyer education: One-on-one counseling with a HUD-certified advisor is required for some programs
- Property type: Single-family homes, condos, townhomes, and some manufactured homes qualify
How to Apply Step by Step
The application process is simpler than most people expect. There’s no separate application for programs like Home+Plus. You just work with an approved lender, and they automatically check your eligibility when you apply for the mortgage.
Start by getting pre-approved with a lender who participates in the Arizona IDA Home+Plus program. They’ll run your numbers and tell you how much assistance you qualify for. Then you shop for a home within the program’s loan limits, make an offer, and close.
If you’re also trying to understand the full picture of what buying a home involves, our guide on buying a home for the first time walks through the process from start to finish and is a great companion read.
Additional Grant Programs in Arizona
WISH and MDPA Grant Programs Through Desert Financial
For eligible buyers, there are also matching grant programs that go beyond just loans. The WISH (Workforce Initiative Subsidy for Homeownership) program works on a matching basis: for every $1 you contribute, you can receive $4 in grant funds. With $12 million available in 2025, this is a real opportunity.
The MDPA (Member Down Payment Assistance) program offers up to $50,000 toward your down payment and closing costs if you contribute at least $10,000 yourself and qualify based on income. Both programs require completing a homebuyer counseling program first.
Section 32 Homeownership in Phoenix
Buyers in the City of Phoenix have access to the Section 32 Homeownership Program, which can give qualified first-time buyers a 20% discount off the appraised value of certain homes. The discount comes as a 10-year, no-interest, no-payment city investment loan. It’s available on homes in targeted areas of Phoenix and requires income qualification.
If you’re also curious about what happens when homeownership gets difficult financially — like in foreclosure situations — it’s worth reading our article on understanding pre-foreclosure vs foreclosure so you have the full picture before you buy.
Conclusion
Arizona has a strong lineup of no-down-payment and low-down-payment programs that can make homeownership real for buyers at nearly every income level. From the flexible Home+Plus program available statewide to the Arizona Is Home initiative for rural buyers and powerful federal options like VA and USDA loans — the tools are there. The key is knowing which program fits your situation and working with an approved lender who can guide you through it. Have questions about your options? Contact us today and we’ll help you figure out the best path to your new home.
Frequently Asked Questions
Can I buy a home in Arizona with no money down?
Yes. If you qualify for a VA loan (military veterans and active duty) or a USDA loan (rural areas), you can purchase with zero down payment. The Home+Plus program can also provide enough assistance to cover your down payment and closing costs, effectively bringing your out-of-pocket cost to zero.
What is the Home+Plus program in Arizona?
It’s the primary down payment assistance program in Arizona, offered statewide by the Arizona IDA. It gives buyers up to 4% of their loan amount as a forgivable second mortgage when paired with a 30-year fixed-rate first mortgage. No first-time buyer requirement.
Do I have to be a first-time buyer to get AZ down payment help?
Not always. The Home+Plus program is open to both first-time and repeat buyers. However, programs like Arizona Is Home and some city-level programs do require you to be a first-time buyer (no home ownership in the past three years).
What credit score do I need for Arizona no-down-payment programs?
Most programs require a minimum credit score of 640. For manufactured homes, the minimum is typically 660. Some loan programs allow lower scores, but the down payment assistance programs generally have this as their floor.
How do I apply for the Arizona Is Home or Home+Plus program?
There’s no separate application. You apply through an approved participating lender. When you apply for your mortgage, the lender checks your eligibility for the down payment assistance automatically. The Arizona Department of Housing website lists approved lenders in your area.