Federal and Local Assistance Programs for First-Time and Low-Income Home Buyers in Phoenix, Arizona

Dreaming of owning a home in Phoenix, but worried about the price tag? You’re not alone. Thankfully, there are a variety of federal and local assistance programs designed to help first-time and below-median income buyers make that leap into homeownership. Let’s explore what’s available in the Valley of the Sun—and how these programs can open doors for you.

Federal Programs to Know

• FHA Loans: Backed by the Federal Housing Administration, these loans are a favorite among first-time buyers. With down payments as low as 3.5% and flexible credit requirements, FHA loans make it easier to qualify for a mortgage even if you don’t have perfect credit or a hefty savings account.
• USDA Loans: If you’re open to living on the outskirts of Phoenix, USDA loans might be an option. They offer zero down payment and low interest rates for eligible rural and suburban properties, with income limits in place.
• VA Loans: For veterans, active-duty service members, and certain spouses, VA loans are a powerful tool. With no down payment, no private mortgage insurance, and competitive rates, they’re one of the best benefits available to those who’ve served.
• HomeReady & Home Possible: Offered by Fannie Mae and Freddie Mac, these programs are tailored for low- to moderate-income buyers, with down payments as low as 3% and flexible sources for down payment funds (like gifts or grants).

Arizona and Phoenix-Specific Programs

• Home Plus Down Payment Assistance Program: Available statewide, Home Plus provides up to 5% of the loan amount for down payment and closing costs. It’s open to both first-time and repeat buyers who meet income and purchase price limits.
• Pathway to Purchase Down Payment Assistance: This program offers up to $20,000 in down payment help for buyers in select Phoenix-area zip codes. Funding can be limited, so it’s wise to check current availability.
• City of Phoenix Homeownership Assistance: The city periodically offers grants or forgivable loans to help with down payment and closing costs. These programs often have income restrictions and require you to complete a homebuyer education course.

Tips for Getting Started

• Take a Homebuyer Education Course: Most programs require it, and you’ll gain valuable knowledge about the buying process.
• Check Eligibility Early: Income and purchase price limits can vary by program, so it’s important to see where you fit.
• Act Quickly: Assistance funds are sometimes limited and offered on a first-come, first-served basis.
• Work with Local Experts: A Phoenix-based lender or housing counselor can help you navigate your options and find the best fit.

With the right resources and a little guidance, homeownership in Phoenix might be closer than you think. Whether you’re a first-timer or working with a modest income, these programs are designed to help you unlock the door to your new home.