Yes, free grants to purchase a home in Arizona still live, for a while longer and offer a big help to home buyers with limited cash on hand but want to buy now. These economic stimulus government grants do not have to be repaid if a buyer meets grant requirements. I just completed a sale for a home for a buyer client with the Home in Five grant that can be used for down payment or closing cost assistance. Check on the free grant links for current availability and re-supply of available funds.
Three Free Government Home Buyer Assistance Grants
1. Home Plus down payment grant does not have to be repaid (see chart below).
2. Home in Five down payment grant for homes purchased in Maricopa County does not have to be repaid.
3. Pathway to Purchase free grant of up to 10% is available in selected Arizona cities such as Buckeye.
All can be used for home down payment assistance or towards buyer home purchase closing costs. The details of the economic stimulus programs through the Arizona Department of Housing and/or Maricopa County are on the links provided.
Home Plus Grant provides down payment assistance for free
Home in Five down payment grant for homes purchased in Maricopa County
Pathway to Purchase free grant of up to 10% is available in selected Arizona cities such as Buckeye
After you work with your lender to get the free grant and determine your free funds and loan approval amounts, you can start looking for homes to purchase. For more information on homes for sale in Arizona with prices, picture and MLS search.
For more information on the Home Plus, Home in Five or Pathway to Purchase Grants get more information from the Arizona Department of Housing (ADOH). As an example, here is information on the popular Home Plus Grant:
"The Arizona Department of Housing, seeks to provide assistance to creditworthy renters who can
qualify for a mortgage but lack the resources for the down payment. The HOME Plus Home Loan
Program provides an attractive 30-year fixed-rate mortgage with a down payment assistance (DPA)
grant that can be used toward the down payment and / or closing costs. DPA is a non-repayable grant
for down payment and closing costs, equal to a percentage of the initial principal balance of the
mortgage loan. DPA is only available in conjunction with a HOME Plus loan. Qualified U.S. Military
Personnel may receive an additional 1% on ANY mortgage type."
HOME Plus Program Highlights:
1. Mortgage for the purchase of an Owner occupied, Primary Residences in Arizona.Borrower(s)
2. Income not to exceed $92,984.
3. Purchase Price limit not to exceed $371,936.
4. Education: Each borrower must complete a homebuyer education course before closing. The homebuyer education requirement may be met by taking a pre purchase course through an internet-based program developed by mortgage insurance companies, or through another HUD-approved homebuyer education provider. For more details, see the last page of the HOME Plus Participating Lender document."
| Mortgage Type | Down Payment Assistance |
Minimum Credit Score |
Geographical Restrictions (NOT available in...) |
| Fannie Mae HFA Preferred | 5% | 640 | Pima County |
| Fannie Mae HFA Preferred | 4% | 640 | Pima County |
| Fannie Mae HFA Preferred | 3% | 640 | Pima County |
| Freddie Mac HFA Advantage | 4% | 640 | Pima County |
| FHA | 4% | 660 | Maricopa & Pima County |
| FHA | 3% | 660 | Maricopa & Pima County |
| USDA-RD | 2% | 640 | Maricopa & Pima County |
| VA | 2% | 640 | Maricopa & Pima County |
*On Fannie & Freddie minimum credit score on ANY LTV = 640. Condos max LTV 95%. DPA is NOT
tied to LTV.
First Step Contact Approved Lender
"The homebuyer MUST work through one of ADOH approved and participating mortgage lenders.
The lender will be your point of contact through the process working with the homebuyer to obtain
a program qualifying mortgage and registration for the down payment assistance grant. Please
see HOME Plus Participating Lenders for the program approved lenders.
ADOH raises funds for our initiatives in the national capital markets and forms partnerships with
banking and lending institutions to facilitate our HOME Plus Home Loan Program throughout the
State. No taxpayer funds are used for this program."
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