Best First-Time Homebuyer Programs in Arizona

Homeownership is expensive, but it’s still a major milestone for many people. Buying a property and making monthly mortgage payments can help you own a home free and clear in a few decades. You could have a lower cost of living and can pass it to your heirs. If you don’t own a home yet, you may want to consider first-time homebuyer programs to get extra help with covering the down payment and getting a mortgage.

Quick Look: Best First-Time Homebuyer Programs in Arizona

• Best for Fannie Mae Mortgage: HOME+PLUS Fannie Mae HFA Preferred Loan Program
• Best for Freddie Mac Mortgage: HOME+PLUS Freddie Mac HFA Advantage Loan Program
• Best for Down Payment Assistance: HOME+PLUS Homebuyer Down Payment Assistance Program
• Best for Maricopa County: Home in Five Advantage Program
• Best for Pima County: Tucson and Pima County Down Payment Assistance

Best First-Time Homebuyer Programs in Arizona

First-time homebuyer programs can make a home in Arizona more affordable. These are some of the top programs to consider for extra funds. You can use some of these programs in conjunction with each other.

Best for Fannie Mae Mortgage: HOME+PLUS Fannie Mae HFA Preferred Loan Program

The HOME+PLUS loan program can help you get a 30-year fixed-rate mortgage and down payment assistance. Qualifying U.S. active military and veterans can get extra help for 1% of the down payment. You can only use this program for a primary residence and must have a debt-to-income ratio no higher than 50%. All homebuyers must complete a training course that discusses homebuyer education.

• Credit score: 640
• Income limit: $126,351
• Loan limit: Debt-to-income ratio cannot exceed 50%

Best for Freddie Mac Mortgage: HOME+PLUS Freddie Mac HFA Advantage Loan Program

The Freddie Mac program has the same requirements as the Fannie Mae program. You need a 640 credit score and can receive assistance for up to 5% of your down payment. You can receive a fixed-rate mortgage at a competitive rate.

• Credit score: 640
• Income limit:  $126,351
• Loan limit: Debt-to-income ratio cannot exceed 50%

Best for Down Payment Assistance: HOME+PLUS Homebuyer Down Payment Assistance Program

This program helps people make a down payment. Although you need to complete an educational homebuying course before closing, you end up with lower mortgage insurance premiums.

• Credit score: 640
• Income limit: $126,351
• Loan limit: DTI cannot exceed 50%

Best for Maricopa County: Home in Five Advantage Program

The Home in Five Advantage Program is exclusively for Arizonians who want to buy housing in Maricopa County. Qualifying homebuyers receive a mortgage with a competitive rate and assistance with down payment and closing costs. Borrowers can get up to 6% in down payment assistance, while eligible individuals receive an additional percentage point of help.

• Credit score: 640
• Income limit: $138,600
• Loan limit: DTI ratio cannot surpass 50%

Bet for Pima County: Tucson and Pima County Down Payment Assistance

The Tucson and Pima County Down Payment Assistance Program offers down payment assistance for up to 20% of the property’s value for low-income families ($45,500 for one person). This program has a maximum purchase price of $358,835 for a new property. Borrowers who earn more income can also qualify for down payment assistance that ranges from 2% to 5%. You must buy a property in Pima County to use this program.

• Credit score: 640
• Income limit: $126,351
• Loan limit: Your debt-to-income ratio must be less than 45%

Best National First-Time Homebuyer Programs

Local programs can help you save a lot of money. However, you can save even more money and access financing sooner if you also use federal programs. These are some of the top loans and lenders to consider.

Best for Low Credit: FHA Loans

FHA loans have the easiest requirements. You can buy a house with a 3.5% down payment if your credit score is as low as 580. Borrowers with 500 credit scores can even get a loan if they make 10% down payments. You need a debt-to-income ratio below 43% to qualify for this loan.

• Credit score: 500
• Income limit: None
• Loan limit: HUD sets limits for each area

Best National FHA Lender: Rocket Mortgage® 

Rocket Mortgage is the top FHA lender in the country. However, the lender offers additional financing options if you want to compare choices. The lender offers competitive rates and a quick application process for its financial products. Consumers can make a down payment as low as 1% for a Rocket Mortgage loan.

• Credit score: 500
• Income limit: None
• Loan limit: Same limits as the HUD

Best for Veterans: VA Loans

VA loans are exclusively for qualifying military, veterans and spouses. These loans have competitive rates and do not require a down payment. You don’t have to pay private mortgage insurance if you take out one of these loans.

• Credit score: 620
• Income limit: None
• Loan limit: None

Best National VA Lender: Veterans United

Veterans United offers zero down payment financing options with low interest rates. The lender offers free credit counseling for people who want to learn more about boosting their credit. Veterans United has been in business since 2002.

• Credit score: 620
• Income limit: None
• Loan limit: None

Best for Rural and Suburban Properties: USDA Loans

If you want to buy a rural or suburban property, a USDA loan can be right for you. These financial products have no down payment requirements and competitive rates. You won’t have to get private mortgage insurance, and some USDA loans have no loan limits.

• Credit score: 620
• Income limit: Limits vary based on your location
• Loan limit: None

Best National USDA Lender: CrossCountry Mortgage

CrossCountry Mortgage has been around for more than 20 years and has an A+ rating with the Better Business Bureau. The lender has established itself as a USDA lender, but it also offers conventional mortgages, HELOCs, FHA loans, VA loans, jumbo mortgages and other financing options.

• Credit score: 620
• Income limit: Limits vary based on your location
• Loan limit: None

Loan Requirements

You provide basic information like your ID, email address and phone number. After those essentials, lenders look at the following:

• Your credit score
• Your income and other financial obligations to determine your debt-to-income ratio
• Your bank account statements and tax returns

Most mortgage lenders have requirements around your credit score and debt-to-income ratio. It’s common for lenders to post their requirements online, so it’s a good idea to check before submitting an application.

How to Apply for a Program

You can apply for a first-time homebuyer program in Arizona by visiting the program’s website and submitting an online application. Each program has a different process, but all require the completion of an online form. After this step, you hear back from the program about your application’s status.

Get Assistance with the Home Buying Process

The homebuying process has several layers, but a good team can make it easier. Reaching out to first-time homebuyer programs can help you save money throughout the process. A lower down payment or complete assistance with this expense gets you closer to your dream home. Make sure you improve your credit score while reaching out to these programs. Many of them require a 640 credit score or higher.

Frequently Asked Questions