Arizona launches financial assistance program for 1st-time homebuyers

Published: Friday, April 12, 2024 - 3:22pm

Gov. Katie Hobbs announced the launch of a new program to provide financial assistance to first-time homebuyers. 

The Arizona is Home program will help qualified first-time buyers by providing down payment assistance and mortgage interest rate relief using $10 million from the state’s Housing Trust Fund and $3 million in federal COVID-19 relief. 

Hobbs said that is enough to help up to 500 families.

“The issue of housing affordability has been at the forefront of Arizonans’ minds for years,” Hobbs said. “I have heard from too many people who have spent years saving money just to have the dream of purchasing a home remain a distant reality.” 

The state will partner with nonprofits Chicanos Por La Causa and Trellis to distribute between $20,000 and $30,000 in down payment assistance and mortgage interest rate relief to eligible buyers.

Arizona Department of Housing CEO Joan Serviss said those groups will provide other support as well.

“They will not only provide financial help at closing but also provide housing counseling and homebuyer education to ensure individuals and families are equipped to handle unforeseen challenges while pursuing the American dream of home ownership,” Serviss said.

To qualify for the program administered by Chicanos Por La Causa and Trellis, first time buyers across the state must make no more than 120% of the area median income.

First-time homebuyers outside of Maricopa and Pima counties can also qualify for assistance through the Arizona Industrial Development Authority if they make no more than 80% of the area median income. Those buyers could be eligible for below-market, 30-year fixed mortgages and down payment assistance. 

Buyers must also meet other traditional lender qualifications, including credit score requirements.

Interested residents can apply for the programs through Chicanos Por La Causa and Trellis or by contacting the Arizona Industrial Development Authority’s Home Plus program.

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