Are you thinking of buying your first home in Arizona? Would you like information on the various programs and incentives available in AZ to help you purchase that first home? If you answered yes to these two questions, there is great news for you. The state of Arizona provides down payment assistance for its residents who are first time home buyers and need help with the down payment and closing costs. This money comes in the form of state grants. This is free money that shouldn’t be passed up! The program amounts can be in the thousands of dollars. It will be well worth your time to educate yourself about the grant programs that the State of Arizona provides.
Arizona First Time Home Buyer Grant Programs
The agency in Arizona that provides assistance to the home buyers is The Arizona Department of Housing. There are a several programs available, depending upon the program and your income. To find out which grant programs you may qualify for, please visit the Arizona Department of Housing website page specifically describing all the grant programs. While you are there, we suggest you sign up for their free newsletter.
The Arizona Housing Finance Authority is implementing a new first‐time homebuyer program to assist with the financing of a first home purchase. The MRB Plus combines the attractive first mortgage interest rate of the Mortgage Revenue Bond loan with downpayment and closing cost assistance. The MRB Plus will offer assistance in the amount of 5% of purchase price, that can be used as down payment or closing costs. The MRB Plus program is available in all areas of Arizona outside of Maricopa and Pima counties. This is a great resource for Arizona residents and one that should not be overlooked. To get more information, simply go to their brochure at brochure.
Local Programs Throughout AZ
In addition to the grant programs described above, the U.S. Department of Housing and Urban Development provides home buyer assistance and grants in every state. There are multiple grant programs designed specifically for people that meet certain requirements, such as grants for people with disabilities so they can continue to live independently at home. It is worth visiting HUD’s website to see what assistance is currently available. For your convenience, simply go to this website.
Here is the contact information for the HUD office in Arizona:
Phoenix Field Office
One North Central Avenue
Phoenix, AZ 85004
Phone: (602) 379-7100
Fax: (602) 379-3985
There are also these local programs in Arizona:
Arizona Southwest Housing Foundation Down Payment Gift Program (GIFT) (480) 926-7206
Flagstaff Affordable Housing Coalition Inc Community Homebuyer Assistance Program (CHAP) (520) 214-7456
Glendale Los Vecinos Housing Development, Inc. First Time Homebuyer Program (FTHB) (623) 435-2255
Multi Counties Community Services of Arizona Rural Home Purchase Assistance Program (RHAP) (602) 280-1365
Northern Arizona Council of Government, Rural Home Purchase Assistance Program (RHAP) (928) 773-1135
Phoenix Community Housing Resources of Arizona (CHRA) Homeownership Incentive Program (HIP) (602) 631-9780
“NSP eligible homebuyers receive $15,000 to use for closing costs and partial down payment to purchase their own foreclosed home that needs repair and up to another $40,000, in addition to the $15,000, to use toward eligible repairs to the home. The
rehabilitation work is done by approved program partners. Below are the basic requirements and a checklist of the steps homebuyers take to become program eligible. More detailed information on each step can be found on the following pages.”
Phoenix Neighborhood Housing Services of Phoenix Down Payment Closing Cost Assistance Program (DPCC) (602) 258-1659
Phoenix Valley-CoRP Downpayment Assistance Program (DAP) (602) 247-4764
Pima County Family Housing Resource Wells Homebuyer Assistance Gift (GIFT) (520) 318-0993
“Family Housing Resources offers down payment and closing costs assistance programs in Pima County designed to educate and counsel first-time* low and moderate income homebuyers in purchasing an affordable home. The availability of assistance depends upon funding opportunities at the time.”
Pima County Pima Gold Home Program (520) 882-0018
– The income limit for assistance for the household is no greater than 120% of the median income for Pima County (see chart above)
– The homebuyer contribution must be at least ½ the lender down payment requirement (minimum $1,000). For example, for an FHA loan the down payment assistance requirement is 3.5%, therefore, the homebuyer contribution would be 1.75% of the purchase price. $1,000 must be from borrower’s own funds, the remainder may be gifted
– The homebuyer is not required to be a first‐time homebuyer, but may not own any other property
– Homebuyers and their spouses/partners/co‐borrowers must attend FHR’s Homebuyer Education Class
San Luis Comite de Bien Estar Inc Forgivable Loan Gap Financing Program (FLGF) (928) 627-8559
Comité helps the members in many ways. Incomes range from $10,000 to $30,000. Half of them don’t have any credit. That’s because in Mexico, there is no credit. Some we arrange to join a credit union, borrow $500, and pay it back so that they can get a credit report. We help them get construction loans and mortgages. We get them up to $10,000 in subsidy for down payments and other costs. In the self-help program, we teach them how to build their own homes.”
Southern Arizona Government Organization, Rural Home Purchase Assistance Program (RHAP) (520) 432-5301
“Down Payment Assistance Programs
Currently, there are no Down Payment Assistance Programs available. Please check back from time to time to see if any programs have become available.”
Tempe Community Assisted Mortgage Program (480) 350-8961
The FHA defines a first-time homebuyer as an individual who has had no ownership in a principal residence during the three year period ending on the date of purchase of the property. This three year period excludes;
a. A single parent who has only owned a primary residence with a former spouse while married; or
b. An individual who is a displaced homemaker and has only owned a primary residence with a spouse.
Tucson TMM Family Services Inc. Federal Home Loan Bank of San Francisco Affordable Housing Program Homeownership Opportunities II (AHP) (520) 322-9557
The First Time Homebuyers Program through TMM is designed to assist low-income homebuyers with the purchase of an affordable first home. The following guidelines are provided to assist TMM’s clients, mortgage companies, banks, realtors and other community members in understanding TMM’s First Time Homebuyers Program and to engage all parties in developing an affordable home purchase package.
Tucson TMM Family Services Inc. First Time Home Buyer Grant Program (GRANT) (520) 322-9557
Yuma County Housing America Corporation Rural Home Purchase Assistance Program (RHAP) (928) 627-4221
Housing America Corporation was founded in 1976, with the objective to address the need of affordable housing in Yuma County and provide opportunities to low income individuals and families to obtain a secure, affordable and safe home.
Housing America’s first project was Del Pueblo apartments, a 40 unit USDA Rural Development Farm Labor housing complex in Somerton, Arizona. Consequently, Colorado Street Apartments, a 32 unit USDA Rural Development farm labor housing complex was also built in Yuma, Arizona.