Arizona offers a combination of federal loan programs and state-backed assistance through the Arizona Industrial Development Authority (AZIDA). These benefits can lower your down payment, reduce long-term costs, and make it easier to qualify for a mortgage.
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Most buyers in Arizona start with one of four main loan types. Each has unique advantages depending on your credit, income, and where you plan to buy.
The AZIDA Home Plus Program is Arizona’s flagship resource for affordable home financing. It partners with lenders statewide to provide fixed-rate mortgages along with down payment and closing cost assistance.
AZIDA makes homeownership more accessible through flexible assistance options.
Arizona buyers can layer federal loan benefits with the Home Plus Program and the MCC Program, which provides a federal tax credit of up to $2,000 per year on mortgage interest. Combining these options can significantly lower both upfront and long-term homeownership costs.
Arizona does not currently offer a state-level First-Time Homebuyer Savings Account (FHSA). That means there’s no Arizona-specific tax deduction or credit for setting up a designated savings account.
Still, buyers can benefit from creating a dedicated home savings account. Separating your down payment funds, setting clear goals, and automating contributions makes it easier to stay on track. With Foyer, you also get savings tools and match opportunities that can be layered with Arizona’s assistance programs.
Even without a state FHSA, Arizona buyers can take advantage of other savings tools and tax benefits:
The Arizona Industrial Development Authority (AZIDA) is the state’s central provider of homebuyer assistance. Through its Home Plus Program, Arizona buyers can access affordable fixed-rate mortgages, down payment support, and long-term tax benefits.
AZIDA works with approved lenders to offer 30-year fixed-rate mortgages. These can be paired with FHA, VA, USDA, or conventional loan types, giving buyers flexibility based on their credit and income.
The Home Plus Program provides down payment and closing cost help in two forms:
Some lenders working with AZIDA offer added incentives for teachers, first responders, veterans, and other community service employees. These benefits may include larger grant percentages or reduced interest rates.
Arizona runs a statewide Mortgage Credit Certificate (MCC) Program through AZIDA. An MCC allows buyers to claim up to $2,000 per year in federal tax credits on mortgage interest, in addition to the mortgage interest deduction. MCCs can be layered with the Home Plus Program for maximum savings.
AZIDA requires homebuyer education for participants in the Home Plus Program. This can be completed online or in person through HUD-approved or AZIDA-recognized providers. Completing the course ensures buyers understand budgeting, mortgage terms, and homeownership responsibilities.
Arizona keeps closing costs more affordable than many states by not imposing a real estate transfer tax. Buyers will still need to plan for standard recording fees, title charges, and property taxes, but there are exemptions that can provide long-term relief.
Arizona does not charge a state transfer tax on property sales. This can save buyers thousands compared to states with transfer taxes ranging from 0.25% to 1%.
While Arizona doesn’t levy a transfer tax, counties and municipalities may charge recording or document fees when deeds are filed. These costs are typically modest, often under a few hundred dollars, but vary by location.
Arizona offers several property tax relief options for homeowners, including:
Closing costs in Arizona usually range between 2% and 5% of the home’s purchase price. On a $350,000 home, this equals about $7,000–$17,500. Typical expenses include:
In addition to statewide programs, some Arizona cities and counties provide their own homebuyer assistance. Employers, especially large hospitals, universities, and city governments, may also offer benefits that can be layered with AZIDA’s Home Plus Program.
Several local programs expand on statewide assistance:
Large Arizona employers — such as universities, school districts, and healthcare providers — may offer down payment assistance or matched savings for employees who purchase homes near their workplace. These programs are often designed to improve employee retention and community investment.
Local assistance can often be combined with statewide programs. For example, a buyer in Phoenix might use the AZIDA Home Plus Program for 4% down payment support and add $15,000 from the Phoenix Open Doors Program, significantly reducing their upfront costs.
Eligibility rules help determine who can qualify for AZIDA and other assistance programs. Arizona follows the federal definition of a first-time buyer but provides some exceptions.
A first-time buyer in Arizona is typically someone who has not owned a home in the past three years. Exceptions include:
AZIDA sets income and purchase price limits that vary by county, household size, and loan type. Limits in Maricopa and Pima Counties are higher than in smaller rural counties. Updated charts are published regularly, and AZIDA-approved lenders can confirm eligibility.
Homes purchased with AZIDA assistance must be used as a primary residence. Buyers generally must move in within 60 days of closing, and some forgivable assistance programs require a minimum period of occupancy to avoid repayment.
To apply for AZIDA or local assistance programs, buyers usually need:
The easiest way to determine eligibility is to work with an AZIDA-approved lender. They can confirm whether you meet income, purchase price, and residency requirements, and advise on which assistance programs you can combine.
Every buyer’s path looks different. Some need months to save and prepare, while others are ready to move quickly. This plan outlines the key steps for both.
Even though Arizona doesn’t have a state FHSA, setting up a dedicated account helps you track contributions toward your down payment and closing costs. Automating deposits makes saving easier.
AZIDA requires buyers using the Home Plus Program to complete an approved homebuyer education course. Taking it early ensures you’re prepared for budgeting, mortgages, and the responsibilities of ownership.
Look into AZIDA’s Home Plus Program, the MCC Program, and local initiatives like Phoenix’s Open Doors or Maricopa’s Home in Five. If your employer offers housing benefits, check whether they can be layered with state programs.
Pre-approval helps you understand how much home you can afford and which programs you qualify for. Lenders can also guide you in combining assistance options.
Some programs, like the MCC, have limited funding or deadlines. Apply early to ensure you secure available benefits.
When making an offer, confirm with your lender and title company that your contract reflects any grants, credits, or assistance you’re using. Planning ahead avoids last-minute issues at closing.
In Arizona, a first-time buyer is defined as someone who hasn’t owned a home in the past three years. To qualify for AZIDA’s Home Plus Program or other assistance, you must also meet income and purchase price limits, complete homebuyer education, and plan to live in the home as your primary residence. Veterans and buyers in federally designated targeted areas may qualify even if they’ve owned a home more recently.
You may be disqualified if you’ve owned a home within the last three years (unless you qualify for an exception), exceed AZIDA’s income or purchase price limits, or intend to use the property as an investment or vacation home.
The required down payment depends on the loan type. FHA loans require at least 3.5% down, conventional loans may allow as little as 3%, and VA or USDA loans may allow 0% down if you qualify. AZIDA’s Home Plus Program can cover up to 5% of your loan amount for the down payment and closing costs, reducing or even eliminating upfront cash requirements.
Yes. The AZIDA Home Plus Program provides down payment assistance of up to 5% of the loan amount, offered either as a grant or a forgivable second lien. In addition, some local programs — like Phoenix’s Open Doors Program and Maricopa County’s Home in Five Advantage — provide their own assistance.
Income limits vary by county, household size, and loan program. Higher limits apply in metro counties like Maricopa and Pima compared to rural areas. AZIDA updates its charts regularly, and an approved lender can confirm which limits apply to your situation.
While Arizona doesn’t have a first-time buyer–specific property tax exemption, homeowners may qualify for programs like the senior valuation freeze, disabled veterans exemption, or widow/widower exemption. These can provide significant long-term savings on annual property taxes.
Foyer gives you a dedicated place to save for your first home in Arizona. You can set milestones, automate contributions, and track progress toward your down payment and closing costs.
We break down AZIDA’s Home Plus Program, MCC benefits, and local assistance in plain language, so you know exactly what’s available. When you’re ready, we connect you with trusted Arizona lenders and real estate professionals who can help you layer programs for maximum savings.
Foyer provides education and savings tools, but we’re not a tax, legal, or lending advisor. Banking services are offered through our FDIC-insured partner. For questions about AZIDA programs, MCCs, or property tax exemptions, we recommend consulting your lender or tax professional.
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Foyer is a fintech company, not an FDIC-insured bank. Banking services provided by Pacific West Bank, Member FDIC. Deposit insurance covers the failure of an insured bank.
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