First-time home buyer programs in Arizona: assistance, loans and real costs
Arizona’s HOME Plus is open to repeat buyers as well, which makes it one of the more flexible state programs — but Phoenix-area prices mean the forgivable assistance covers a smaller share of the down payment than it did a decade ago. Everything else on this page — the agency programs, the tax credit, the closing costs — sits on top of that fact.
| State housing agency | Arizona Department of Housing |
|---|---|
| Median home price (approx.) | $430,000 — statewide order of magnitude; metros differ |
| 3.5% / 5% / 20% down | $15,050 / $21,500 / $86,000 on the median |
| Property tax (effective) | about 0.56% — roughly $2,408 a year on the median |
| Mortgage credit certificate | Not consistently offered — ask a lender |
| Transfer tax | Arizona imposes no real estate transfer tax — only a flat affidavit of property value fee of a few dollars — so the government share of closing costs is negligible. |
Arizona’s first-time buyer programs
Arizona’s HOME Plus program, run by the Arizona Industrial Development Authority, offers 30-year fixed FHA, VA, USDA and conventional loans with down payment assistance statewide. Maricopa County’s Home in Five Advantage and Pima County’s Tucson/Pima IDA program add local options with their own assistance.
Down payment assistance: how it is structured
HOME Plus assistance is typically a forgivable second lien of a few percent of the loan amount (the percentage depends on the loan type and credit score), forgiven after a three-year occupancy period with no monthly payment.
Assistance structures matter as much as amounts: a grant is free; a forgivable second disappears if you stay long enough; a deferred second is repaid when you sell or refinance; a repayable second adds a monthly payment. Ask which one you are being offered. See how down payment assistance programs work.
Mortgage credit certificate (tax credit)
Mortgage Credit Certificates in Arizona have been offered through county IDAs (Maricopa and Pima) rather than a single statewide program; availability changes with bond authority — ask a participating lender.
Limits and requirements
HOME Plus uses a statewide income limit per borrower and a purchase price cap, both published by the Arizona IDA; it is not restricted to first-time buyers, though the home must be a primary residence. Minimum credit scores start in the 640 range for most loan types.
Closing costs, transfer taxes and who pays them in Arizona
Arizona imposes no real estate transfer tax — only a flat affidavit of property value fee of a few dollars — so the government share of closing costs is negligible.
Arizona closings use escrow companies rather than attorneys; total closing costs typically run 2% to 3% of the price, and sellers customarily pay for the owner’s title policy in much of the state. Our guide to closing costs explains each line of the Loan Estimate and which fees you can shop.
The numbers on a typical Arizona home
Worked on Arizona’s rough $430,000 median (your county may be far above or below) at an illustrative 6.5%: down payment, loan amount, principal and interest, and the monthly share of property tax at the state’s approximate 0.56% effective rate, or about $2,408 a year. Exclude nothing else from your own budget — insurance, PMI, HOA dues all apply.
| Structure | Down payment | Loan amount | P&I at 6.5% (30 yr) | Property tax / mo (est.) |
|---|---|---|---|---|
| FHA, 3.5% down | $15,050 | $414,950 | $2,623 | $201 |
| Conventional, 5% down | $21,500 | $408,500 | $2,582 | $201 |
| Conventional, 20% down (no PMI) | $86,000 | $344,000 | $2,174 | $201 |
Illustrative rate and approximate state figures — not an offer or a quote. Full payment tables cover $150,000 to $800,000 at 5% to 8%; the affordability guide explains how lenders size the loan.
Frequently asked questions
Does Arizona have down payment assistance for first-time buyers?
HOME Plus assistance is typically a forgivable second lien of a few percent of the loan amount (the percentage depends on the loan type and credit score), forgiven after a three-year occupancy period with no monthly payment. The agency publishes the current limits and amounts; a lender approved for the program will know them.
Is there a first-time home buyer tax credit in Arizona?
Mortgage Credit Certificates in Arizona have been offered through county IDAs (Maricopa and Pima) rather than a single statewide program; availability changes with bond authority — ask a participating lender. An MCC must be issued at closing — it cannot be added to an existing loan — so ask about it before you choose a lender.
What are typical closing costs when buying a house in Arizona?
Arizona closings use escrow companies rather than attorneys; total closing costs typically run 2% to 3% of the price, and sellers customarily pay for the owner’s title policy in much of the state. Arizona imposes no real estate transfer tax — only a flat affidavit of property value fee of a few dollars — so the government share of closing costs is negligible.
Guides for first-time buyers
- FHA vs conventional for a first-time buyer: which loan wins, and when
- 3% down conventional loans: HomeReady, Home Possible and Conventional 97
- Pre-approval vs pre-qualification: what sellers actually respect
- Closing costs explained: what is negotiable, what is not
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