Buying in Phoenix but worried the down payment will hold you back? You are not alone, and there is help designed for Arizona buyers. The statewide HOME Plus program can cover a portion of your down payment and closing costs, which may make your first step into homeownership more manageable. In this guide, you will learn how HOME Plus works in Phoenix, who may qualify, how it compares with local options like Home in Five and Arizona Is Home, and the steps to use it. Let’s dive in.
HOME Plus basics in Phoenix
HOME Plus is a statewide down payment assistance program run by the Arizona Industrial Development Authority and it is available in Phoenix and all of Maricopa County. You access it through an approved participating lender, not through a direct buyer application. The assistance is commonly a 0 percent interest, no payment second mortgage that is forgiven after 60 months if you stay in the home. If you sell or refinance within those 5 years, you must repay the assistance at payoff. Learn more on the HOME Plus program page.
How much assistance you can get
Program materials describe up to 4 percent in assistance that can be used for down payment and closing costs. The program offers forgivable and non‑forgivable second mortgage options that pair with specific first‑mortgage products. Your lender will help you match the DPA option to your loan type and goals. See the HOME Plus overview for details.
Eligibility and income limits
HOME Plus lists county‑level income limits. For Maricopa County, the public page shows a maximum borrower annual income of $146,503. Limits and calculations can change, and your lender will determine how your qualifying income is counted. At least one borrower must complete a pre‑purchase homebuyer education course before closing. Check current program guidance here.
Loan types and PMI savings
HOME Plus supports FHA, VA, USDA, and conventional loans structured as HFA Advantage or HFA Preferred. With HFA Advantage or HFA Preferred conventional loans, reduced mortgage insurance premiums may apply, which can lower your monthly cost compared with standard conventional loans. FHA, VA, and USDA have different combined loan‑to‑value rules, and your lender will structure the first and second accordingly. Review loan type options on the program page.
Compare HOME Plus with local options
Before you choose, compare HOME Plus with other Phoenix area programs so you find the best fit for your budget and timeline.
- Home in Five, run by the Phoenix IDA and Maricopa County IDA, targets Maricopa County buyers and has historically offered roughly 4 to 6 percent in assistance depending on program variant and borrower category, with some added grants for teachers, first responders, and veterans. Explore Home in Five details.
- Arizona Is Home is a separate state initiative that offered larger, time‑limited awards for qualifying first‑time buyers. Funding and availability have changed over time, so you should confirm if funds are open. See the Arizona Department of Housing overview.
The right choice depends on the assistance percent, forgiveness terms, the interest rate on the first mortgage, and any PMI savings. Ask your lender for a side‑by‑side PITI plus PMI comparison over at least 5 years.
Pros, tradeoffs, and what to watch
Using DPA reduces your upfront cash, which can help you keep savings for moving, reserves, or repairs. That said, some DPA options may carry slightly different first‑mortgage interest rates set by the program, so you should compare total monthly payment, not just the assistance amount. If you plan to sell or refinance within 5 years, remember the common forgivable second must be repaid if you leave early. Program parameters and income limits can change, so verify the latest numbers with an approved lender. The HOME Plus page explains these mechanics.
Step‑by‑step: Using HOME Plus in Phoenix
- Get ready early. Review your credit, gather income documents, and enroll in a HUD‑approved homebuyer education course that meets HOME Plus requirements. Program guidance is here.
- Connect with an approved lender. HOME Plus is delivered through participating lenders who will confirm your eligibility and price available loan products. Start with the program’s lender resources.
- Compare scenarios. Ask for quotes on FHA, VA, USDA, and HFA Advantage or HFA Preferred conventional options. Request full PITI plus PMI and a 5‑year cash‑flow comparison that reflects the 60‑month forgiveness timeline.
- Choose terms and lock. Your lender will align the DPA percent and first‑mortgage product with your goals and help you complete the required education before closing.
- Close and stay the course. If you use the common forgivable second, the assistance is typically forgiven at month 60 if you still occupy the home. If you sell or refinance before that, plan for repayment at payoff.
When HOME Plus may be a strong fit
- You need help covering down payment or closing costs to buy sooner in Phoenix.
- You plan to live in the home at least 5 years and want potential forgiveness of the second mortgage.
- You can benefit from reduced PMI available on HFA Advantage or HFA Preferred conventional options.
- You want a program designed to be available year‑round through approved lenders. HOME Plus outlines continuous availability.
Local guidance you can trust
If you are weighing HOME Plus against Home in Five or a temporary state program, a clear side‑by‑side is the best way to decide. As a Mesa‑based, East Valley focused team that helps buyers across Phoenix and Maricopa County, we can connect you with experienced lenders and help you structure a plan that fits your timeline and budget. When you are ready, reach out to Snow Realty & Property Management to start a smart path to homeownership.
FAQs
What is HOME Plus for Phoenix buyers?
- It is a statewide Arizona IDA program available in Phoenix that pairs an Arizona IDA first mortgage with down payment assistance, often as a 0 percent interest second that is forgiven after 60 months if you stay in the home. Program overview.
How much HOME Plus assistance can I get in Phoenix?
- Program materials describe up to 4 percent for down payment and closing costs, with options varying by loan product and lender pricing. See details.
Do I need to be a first‑time buyer for HOME Plus?
- Not necessarily. Eligibility depends on the underlying mortgage product and lender underwriting, so confirm your status with an approved lender. Learn more.
What happens if I refinance within 5 years using HOME Plus?
- For the common forgivable option, the second mortgage must be repaid if you sell or refinance before month 60, and the assistance is not subordinated to a new refinance. Review terms.
How does HOME Plus compare to Home in Five in Maricopa County?
- Home in Five is a local Phoenix and Maricopa IDA program that has historically offered roughly 4 to 6 percent assistance and targeted grants for some occupations, so it is worth comparing side by side with HOME Plus. Explore Home in Five.
Can HOME Plus lower my PMI on a conventional loan?
- It can when paired with HFA Advantage or HFA Preferred conventional loans that offer reduced mortgage insurance premiums compared with standard conventional options. See loan type info.
How do I apply for HOME Plus in Phoenix?
- You do not apply directly. You work with an approved participating lender who enrolls your loan in the program and guides you through the required homebuyer education. Start here.
