More Arizona Families to Receive Down Payment Assistance Under Expanded State Program
By Bob Hembree
Governor Katie Hobbs announced Tuesday a $5 million expansion of Arizona's homeownership assistance program, bringing the total investment to $18 million to help first-time buyers with down payments and closing costs. The expanded "Arizona Is Home" program aims to double the number of first-time homebuyers receiving assistance, with officials estimating the additional funding will help approximately 140 families purchase homes in Maricopa and Pima counties.
"By putting homeownership within reach, we're helping working families unlock the Arizona Promise and build their future right here in Arizona," said Arizona Gov. Katie Hobbs. "Through Arizona Is Home, we've turned the dream of owning a home into a reality for hundreds of Arizonans, and now even more Arizonans will have that same opportunity."
Program Details and Funding
The additional funding comes from the Arizona Rescue Plan Act, using federal COVID relief dollars to address housing affordability challenges across the state. The expansion builds on an earlier $13 million program that provided financial assistance to about 500 home buyers throughout Arizona.
According to the governor's office, the additional dollars should help purchase 65 homes in Maricopa County and provide $9,000 assistance for 75 would-be homeowners in Pima County. Rural counties throughout the state, including Coconino and Gila counties, already received their second infusion of program dollars, with 589 homes purchased through the program in Arizona's 13 rural counties.
However, as of July 2025, all available funds for the Arizona Is Home Program have been expended, and no new reservations are currently being accepted due to volume constraints. There will be no new funding for the Arizona Is Home program for the remainder of 2025, though this does not impact the separate Home Plus down payment assistance program, which remains available year-round.
Eligibility and Requirements
For residents in Coconino and Gila counties, the program targets first-time home buyers who have been Arizona residents for at least six months. Eligible homebuyers must have annual incomes at or below 80% of the Area Median Income (AMI), though there was a temporary increase to 100% of AMI that was in effect through the end of 2024.
Eligible homebuyers who are at 80% or below Area Median Income are eligible to receive up to $30,000 and homebuyers who are between 81% to 120% of AMI are eligible to receive up to $20,000. The program requires buyers to have a credit score of at least 640 and mandates completion of an 8-hour homebuyer education class along with meeting one-on-one with a HUD-certified Home Ownership Advisor.
Partner Organizations Support Expansion
The Arizona Is Home mortgage assistance program works through three existing lending organizations to maximize reach across eligible populations.
"The Arizona is Home Program has played a crucial role in bridging the affordability gap for hardworking individuals striving to become homeowners," said Brenda Lopez, Chief Homeownership Officer at Trellis. "By offering down payment assistance, interest rate reductions, and housing counseling, it has empowered many families to achieve their dream of owning a home when they otherwise would not have been able to."
"Chicanos Por La Causa, Inc. is delighted to be able to help low to moderate income and first-time homebuyers with resources, like the Arizona Is Home Program, to bridge the financial gap to purchase their first home," said Patricia Garcia Duarte, Executive Vice President, Homeownership Initiatives at Chicanos Por La Causa. "Even in challenging housing markets, the reality of homeownership is possible when down payment and interest rate reduction options are available."
Rural Counties Receive Priority Support
Coconino and Gila county residents have access to the Arizona Is Home program through the Arizona Industrial Development Authority, which specifically targets rural homebuyers. The program is available in 13 rural counties including Apache, Cochise, Coconino, Gila, Graham, Greenlee, La Paz, Mohave, Navajo, Pinal, Santa Cruz, Yavapai, and Yuma.
"Throughout Arizona 1st time homebuyers are facing unprecedented headwinds and those challenges are even greater in our rural committees," said Dirk Swift, Executive Director, Arizona Industrial Development Authority. "The Arizona is Home program targets these rural homebuyers, providing assistance and creating a pathway to homeownership."
Rural counties have already received their second infusion of program funding, with 589 homes purchased through the program across Arizona's rural counties. The program offers below-market 30-year fixed interest rates combined with 4% down payment assistance and closing cost assistance specifically for first-time homebuyers in these areas.
Housing Crisis Context
The expansion comes as Arizona continues to grapple with housing affordability challenges across the state. In her 2025 State of the State address, Governor Hobbs acknowledged the scope of the problem facing working families.
During the address, Hobbs highlighted the success story of Maria Magdalena Contreras, describing her as a widow and hardworking mother of four children who works as a medication technician. "After renting for eight years, Maria was finally able to buy a home thanks to down payment assistance from our Arizona Is Home program," Hobbs said in the address.
Program Success and Future Goals
The Arizona Department of Housing and state officials view the program expansion as part of a broader strategy to address housing affordability across the state.
"Last year's historic investment in housing has had an impact across the full housing continuum, from preventing homelessness to building more affordable housing," said Arizona Department of Housing CEO Joan Serviss.
The program was highlighted as a key accomplishment in Governor Hobbs' housing initiatives, which have also included maximizing federal Low Income Housing Tax Credits to fund 15 new affordable housing projects totaling 1,049 units, with seven of those projects located in rural areas.
Broader Housing Policy Efforts
The homeownership assistance program represents one component of the Hobbs administration's approach to housing affordability. State lawmakers have approved various measures designed to address different aspects of the housing shortage, including requirements for many cities to allow homeowners to build accessory dwelling units on their property and mandates for communities to allow more diverse housing types including duplexes, triplexes, fourplexes and townhomes.
However, Governor Hobbs has acknowledged that programs like Arizona Is Home address only a portion of the state's broader housing affordability challenges, indicating continued work will be needed to make homeownership accessible to more Arizona families.