Home Plus Arizona: Everything You Need to Know

Not a first-time buyer? That's okay. The Home Plus Arizona program doesn't care if you've owned a home before. It's one of the few down payment assistance programs in Arizona that's open to repeat buyers, and it offers up to 5% toward your down payment and closing costs.

Let's dig into how it works and whether it might be right for you.

What Is Home Plus Arizona?

Home Plus is a down payment assistance program administered by the Arizona Industrial Development Authority (Arizona IDA). Unlike many DPA programs that are restricted to first-time buyers, Home Plus is available to all eligible buyers, whether you're buying your first home or your fifth.

The program provides a forgivable second mortgage that covers your down payment and potentially some closing costs. If you stay in the home for the required period, you never have to pay it back.

How Much Down Payment Assistance Can You Get?

Home Plus offers up to 5% of your loan amount in assistance. That extra percentage point compared to some other programs can make a meaningful difference.

Here's what that looks like:

Purchase Price	First Mortgage	DPA Amount (5%)
$300,000	$285,000	$14,250
$350,000	$332,500	$16,625
$400,000	$380,000	$19,000

For many buyers, that 5% can cover your entire down payment on an FHA loan (which requires 3.5% down) with money left over for closing costs.

Eligibility Requirements

Buyer Status

This is the big one: you don't have to be a first-time buyer. If you currently own a home, you'd need to sell it before closing on your new purchase, but prior homeownership doesn't disqualify you.

Credit Score

You'll need a minimum credit score of 640. All borrowers on the loan must meet this threshold.

Income Limits

Home Plus has income limits that vary by county and household size. These are generally set at 80% to 115% of the area median income, depending on the specific program option. The limits are fairly generous for the Tucson metro area.

Occupancy

The property must be your primary residence. Investment properties and second homes don't qualify.

Property Location

The home must be in Arizona. Home Plus works statewide, so whether you're buying in Tucson, Phoenix, Flagstaff, or anywhere else in the state, you may be eligible.

How the Forgiveness Works

The Home Plus DPA is structured as a 5-year forgivable second lien.

Here's what that means in practice:

• No monthly payments on the DPA portion
• The loan forgives incrementally over 5 years (typically 20% per year)
• If you sell or refinance before 5 years, you repay the unforgiven balance
• After 5 years of living in the home, the entire amount is forgiven

If you move after 3 years, for example, you'd only need to repay about 40% of the original DPA amount. The forgiveness that's already occurred stays forgiven.

Home Plus vs. Pima Tucson Lighthouse: Quick Comparison

Buyers in the Tucson area often ask which program is better. Here's a quick side-by-side:

Feature	Home Plus Arizona	Pima Tucson Lighthouse
DPA Amount	Up to 5%	Up to 4%
First-Time Buyer Required	No	Yes
Forgiveness Period	5 years	3-5 years
Minimum Credit Score	640	640
Administrator	Arizona IDA	Arizona Housing

If you're a first-time buyer, you have options. If you've owned before, Home Plus is likely your best bet.

The Application Process

Step 1: Check Your Eligibility Start by confirming you meet the basic requirements: credit score, income limits, and property type. Our quick qualifier quiz can help you get a preliminary answer in about 60 seconds.

Step 2: Connect with a Participating Lender Not all lenders offer Home Plus. You'll need to work with a lender who's approved to originate these loans. That's where we come in.

Step 3: Complete Homebuyer Education You'll need to finish a HUD-approved homebuyer education course before closing. This is usually done online and takes a few hours.

Step 4: Get Pre-Approved Once we've reviewed your financials, we'll issue a pre-approval letter that includes your Home Plus eligibility. This puts you in a strong position when making offers.

Step 5: Find and Buy Your Home With pre-approval in hand, you'll shop for homes, make an offer, and proceed through the normal home buying process. The DPA funds are applied at closing.

Who Is Home Plus Best For?

Home Plus tends to be a great fit for:

• Repeat buyers who don't qualify for first-time buyer programs
• Buyers who want the higher 5% assistance amount
• Anyone who plans to stay in their home for at least 5 years
• Buyers who have steady income but limited savings for a down payment

If you're relocating to Tucson from another state where you owned a home, Home Plus could be your ticket to getting into the Arizona market without needing a huge cash reserve.

Frequently Asked Questions

Can I use Home Plus with any loan type? Yes, Home Plus works with FHA, VA, USDA, and conventional loans. Your lender will help determine which combination makes the most sense for your situation.

What if I need to move for work before 5 years? You'd repay the remaining unforgiven balance. However, if you're being transferred by an employer, there may be some flexibility. We can discuss your specific circumstances.

Are there purchase price limits? Yes, but they're fairly generous. For Pima County, the limits typically allow you to purchase a home in the $400,000+ range, which covers most starter homes and beyond.

Can I combine Home Plus with other DPA? Generally, you can only use one DPA program per transaction. The good news is that 5% from Home Plus is often enough to cover your needs.

Take the Next Step

Wondering if Home Plus is right for you? The fastest way to find out is to take our qualifier quiz or give us a call at (480) 420-4918.

We've helped countless buyers in Tucson and across Arizona use Home Plus to get into their homes. Even if you're not sure about your eligibility, a quick conversation can give you clarity on your options.

Check out all DPA programs available in the Tucson area to compare your options side by side.