Overview
Arizona's housing market has experienced significant growth over the past decade, driven by population influx from higher-cost states like California. Despite rising prices, the state offers robust homebuyer assistance through the Arizona Industrial Development Authority and the Department of Housing.
The Home Plus program is Arizona's most popular down payment assistance program, offering up to 5% of the loan amount as a forgivable second lien. If you remain in the home for three years, the assistance is completely forgiven, effectively making it a grant. The program is available to both first-time and repeat buyers and can be paired with FHA, VA, or conventional loans.
State Programs
Home Plus Program
Down payment assistancePathway to Purchase
Down payment and closing cost assistanceFederal Programs Available in Arizona
These nationwide programs can be combined with Arizona state assistance for maximum benefit.
FHA Loan Program
Low down payment mortgageVA Home Loan
Zero down payment mortgageUSDA Rural Development Loan
Zero down payment mortgageTips for First-Time Buyers in Arizona
The Pathway to Purchase program targets lower-income buyers in designated census tracts, providing up to $20,000 in down payment and closing cost assistance as a 0% interest deferred loan. This is repaid only when the home is sold, refinanced, or no longer owner-occupied. First-time buyer status is required for this program.
Arizona has no state income tax on the first $27,272 for single filers (2.50% flat rate), keeping more take-home pay available for mortgage payments. Property taxes average about 0.63%, among the lowest in the western U.S. The combination of relatively low taxes, growing job markets in Phoenix, Tucson, and Scottsdale, and available assistance programs makes Arizona an attractive option for first-time buyers.
Federal programs are widely available in Arizona, with USDA loans particularly relevant in rural areas throughout the state, including communities outside the Phoenix and Tucson metro areas. VA loans are available at Luke Air Force Base, Davis-Monthan Air Force Base, and Fort Huachuca.
Frequently Asked Questions
For educational purposes only -- not financial or tax advice. Program details, eligibility requirements, and benefit amounts are subject to change. Verify all information directly with the administering agency before applying. Last verified: March 30, 2026.