Down Payment Assistance in Arizona: What to Ask Before You Buy
Open the full-size flyer to read all program details and disclosures.
Saving for the upfront costs of buying a home can take time. If you are planning an Arizona home purchase, down payment assistance may be worth a closer look. The important questions are how the assistance works, what you still need to bring to closing, and whether the full mortgage payment fits your budget.
Here is how I would start that conversation.
Understand the cash you need to close
Your down payment is the portion of the purchase price you contribute rather than finance with your first mortgage. Closing costs are separate expenses associated with the loan and purchase, such as lender charges, title and settlement services, and certain prepaid or escrow amounts.
An assistance program may help with the down payment, closing costs, or both, depending on its rules. Receiving assistance does not automatically mean you can buy with no money out of pocket. Review the estimated cash to close after deposits, assistance, and any permitted credits are accounted for. The CFPB’s Loan Estimate guide explains where to find those numbers.
Know whether the assistance must be repaid
The word “assistance” can describe very different arrangements:
- A grant may not require repayment when its requirements are met.
- A forgivable second mortgage is still a loan secured by the home until its forgiveness conditions are satisfied.
- A repayable second mortgage may require monthly payments or defer repayment until a later event, such as a sale or refinance.
Before choosing a program, ask for the repayment terms in writing. Does a balance remain? What happens if you refinance, sell, or stop living in the home? A loan with no monthly payment can still create an obligation later.
For an Arizona example, Home Plus currently describes a no-interest, no-payment second mortgage that is forgiven after five years. Selling or refinancing within the first 60 months requires repayment. Its rules should not be assumed to apply to another program.
Where DPA Advantage fits
DPA Advantage, featured in the flyer with this article, is a grant program administered by eLEND. Its current public program information describes assistance equal to 2% or 3.5% of the purchase price for eligible transactions using specified FHA mortgage programs. The administrator states that the grant does not require repayment and has no recapture period.
The program is not limited to first-time homebuyers. However, a grant option is not an approval guarantee. The borrower, property, mortgage, and transaction must satisfy the applicable requirements.
The assistance percentage is calculated from the purchase price. It should not be read as a promise that every closing expense will be covered. We still need to review the complete financing and closing figures for your situation.
DPA Advantage is not affiliated with HUD or FHA. Using the grant with an eligible FHA-insured mortgage does not make the assistance program a federal grant. Jim Apessos and Barrett Financial Group are not government agencies, and this article does not imply HUD or FHA endorsement. See eLEND’s DPA Advantage information for the administrator’s current description.
Check the requirements for your situation
Eligibility can involve credit, qualifying income, debts, available funds, property location and condition, occupancy, and homebuyer education. Requirements differ by program and lender. A credit score or an occupation mentioned in an advertisement does not determine the entire outcome.
DPA Advantage has multiple eligibility routes. Do not assume that an income figure shown in a flyer applies to every applicant or that living in a particular Arizona county automatically qualifies a property. I can help review the relevant route and the lender’s current requirements before you rely on assistance in your buying plan.
Availability also changes. For example, Arizona IDA reports that its separate 2026 Arizona Is Home program exhausted funding and was retired for the remainder of the year as of October 6. That is a different program from DPA Advantage and Home Plus.
Compare the mortgage as well as the assistance
Ask to see your eligible financing choices side by side, including an option without assistance where available. Compare the interest rate, fees, mortgage insurance, total monthly payment, cash to close, and any second-loan obligation. Less cash upfront does not necessarily mean a lower total borrowing cost. The CFPB’s loan comparison guide provides a useful checklist.
Leave room for life after closing, too. Moving, repairs, utilities, maintenance, and HOA expenses can affect what feels comfortable each month. The CFPB’s homebuying budget guidance recommends accounting for those expenses and keeping a cushion.
Get help with financing and finding a home
I can help you review mortgage options, estimated costs, and the steps toward preapproval. For DPA Advantage specifically, eLEND currently states that it is not accepting preapprovals before a property is identified, often called “TBD” preapprovals. We should review its property-specific process before you rely on that program.
Breona Baridon, REALTOR® with Barrett Real Estate, can help with your home search, property questions, tours, and the real estate side of the purchase.
For financing questions, contact Jim Apessos, Barrett Financial Group, L.L.C., NMLS #229056, at (619) 737-7879 or jim.a@barrettfinancial.com.
For your home search, visit Breona Baridon’s website or contact her at (520) 429-5123 or breonasellsaz@gmail.com. Breona’s Arizona real estate license is SA690202000. You remain free to choose your real estate professional; working with Breona is not a condition of assistance.
Start with your questions and a clear look at the numbers
You do not need to figure out every program on your own. Let’s talk about your budget and the options that may fit your plans.
Talk With JimRelated reading: FHA vs. Conventional Loans. Explore more questions in the Mortgage Blog.