If you’re looking to become a first-time homeowner, and looking to do so in Arizona, you’re in luck! The state has put together plenty of first time home buyer Arizona grants, refunds, and other programs and incentives to help you purchase that first home. This first-time homebuyer aid comes in the form of grants, generous loans (that don’t always need to be paid back), and temporary mortgage assistance. All of the following programs are specific to Arizona. Keep in mind, however, that there are also plenty of federally-funded incentives for first time home buyers. You may be able to receive other incentives or assistance from more local branches of government, such as your county or municipal government.
While we do feel that the following are the three best first time home buyer Arizona assistance programs, it pays to look yourself for both federal and local programs as well!
What if I Have Good Credit, But No Cash for a Down Payment or Closing Costs?Â
Are you financially responsible and have good credit–but you just don’t have enough free cash to cover a down payment or closing costs? The Arizona Home Plus Home Loan Program is definitely something you should look into. This program combines a 30-year fixed-rate mortgage with a down payment assistance (DPA) grant to help cover your closing and down payment costs. For those who can’t believe their eyes: Yes, it’s a grant, not a loan. You don’t have to pay this back!
There are a few conditions you must meet in order apply. Your household income can’t be much over $89,000 (although that is always worth double-checking, as these programs are always in motion; it’s worth double-checking to be sure). You also can’t use this grant for a home that will cost more than  $356, 352–something that’s not a problem for most first-time home buyers!
Finally, anyone who uses this type of first time home buyer Arizona assistance must attend a homebuyer education course before they begin the process. Then, the loan must be taken out through one of a few approved lenders. You can find out more at the HOME PLUS Home Loan Program page.
What If I Want to Buy a Home in Phoenix and the HOME PLUS Grant Just Isn’t Enough?
If you live in Phoenix, you can get a deferred payment loan of up to $15,000 to help with your down payment and closing costs. This is a need-based program, which means you likely cannot get this form of first time home buyer Arizona assistance if you have already received HOME PLUS help.
The Open Doors Home Ownership Program program does have advantages over the HOME PLUS grant, however. While the grant doesn’t need to be paid back, it only pays a sum of up to 4% (5% for veterans) of the home loan. That may not be enough for some buyers, especially considering home prices in Phoenix. And while the Open Doors loan does need to be paid back, the deferred payment option does take some of the sting away. Quite a bit of the sting, in fact: The Open Doors loan charges no interest, and doesn’t need to be paid back until the home is sold or refinanced. The loan is also forgiven after 15 years. That’s about as close to a grant as a loan can get!
Like the grant above, this loan requires first time home buyers to take an education course. This one requires education specifically from HUD (the department of Housing and Urban Development). You can find out more by reading this PDF from the city of Phoenix.
Can Arizona Help Me Buy a House if My Financial History is Just Plain Bad, or I Don’t Live in Phoenix?
So far, we’ve covered programs that don’t require you to have money. But the HOME PLUS grant requires you to have moderately good credit (in the mid 600s). And even though the Open Doors loan is a great program, it just may not fit your needs–and at any rate, it is only available to Phoenix residents.
The State of Arizona provides direct home loans to rural families who may not otherwise have the means to purchase a home. According to this program’s website, the program enables “low- and very-low-income applicants [to] obtain decent, safe, and sanitary housing in eligible rural areas by providing payment assistance.”
One plus of this program is its low interest rate. For anyone who meets the low income requirements, the interest rate on this direct home lone is only 3%! This figure reflects Spring 2016, and like other interest rates, is subject to change over time. This program helps you obtain and pay a loan, by increasing your ability to pay that loan. It is not a permanent program, but it can help a first time home buyer Arizona get into a home and make those first crucial months of payments. for more information, click the link to the program’s web page above.
The HOME PLUS, the Open Doors Loan, and Arizona’s direct home loans for qualifying households are, we think, the best three first time home buyer Arizona programs available. But they aren’t the only ones! Take a few minutes to look at our suggestions, but looks for local and federal programs too. A few hours in research can improve your life for years to come.
2 Point Highlight
The HOME PLUS program can help you if you have good credit, but not enough cash for a down payment.
If you live in Phoenix, you can get a deferred payment loan of up to 15,000 to help with your down payment and closing costs.
