How does Arizona Home Plus work?
It's a second mortgage behind your main loan that covers your down payment or closing costs. No interest, no monthly payment, and after five years it's forgiven and disappears.
It's available statewide, in every Arizona county, city and ZIP code, so unlike a lot of assistance programs there's no map to check and no targeted-area requirement. If you're buying in Arizona and you're under the income limit, you're in the zone.
How much assistance do you get?
2%, 3% or 4% of your loan amount. On conventional there's no 2% option, so the choice there is 3% or 4%.
You pick the level, and each one carries a different rate on the first mortgage, so more assistance means a slightly higher rate. I can show you what each level works out to at your price point.
What can you use it with?
This is the part that makes Home Plus more useful than most state programs. It layers with FHA, conventional and VA.
On conventional it also reduces the mortgage insurance premium, which is a second benefit people miss entirely. The assistance covers the down payment and the loan gets cheaper every month on top of that.
Why would a veteran use this if VA is already zero down?
Because a VA loan being zero down doesn't make it free to close.
You still have closing costs, prepaid taxes and insurance, and funding reserves. Home Plus comes in behind the VA loan and covers those, which for a lot of veterans is the difference between buying this year and buying in two years.
But read the next section before you do it.
The condition that catches people
If you sell or refinance before the forgiveness term is up, you repay the assistance in full. Not a prorated share. The whole amount, in year four of five, same as in year one.
For most buyers that's fine, because most people aren't selling in under five years. Where it bites is refinancing.
Rates move. If they drop meaningfully a year or two from now, you're choosing between keeping a higher rate or writing a check for the entire assistance amount to get rid of the lien. That's a particularly sharp trade for a veteran, because the VA IRRRL is normally the cheapest, simplest refinance in the market, and the Home Plus lien sitting behind your loan takes that off the table until it's forgiven.
That isn't a reason to skip Home Plus. It's a reason to decide with your eyes open about what you're trading. Free money that locks your rate in place for five years is still a real cost if rates fall, and nobody mentions it when they're handing you the brochure.
What you have to do to qualify
An income limit applies to the borrower's income, not the whole household, currently $155,386 (as of April 6, 2026). You need a credit score of at least 620. One borrower has to complete a homebuyer education course before closing, which is a short online course.
That's it. There's no first-time buyer requirement in the way people expect, no geographic restriction, and no added time to your closing. The program runs alongside a normal loan rather than slowing it down.
Is it worth it?
For a buyer who's short on cash and planning to stay put, yes, clearly. The assistance is real money, it costs nothing month to month, and after the term it's gone.
For a buyer who might move or refinance inside the window, run both versions before deciding. I can show you the actual numbers for your scenario, including what happens if you need out early.
Send me your details and I'll run it.
Run Home Plus on your purchase
Arizona Home Plus FAQ
Can I use Arizona Home Plus with a VA loan?
Yes. It sits behind the VA loan and covers closing costs and prepaids rather than a down payment, since VA doesn't require one. That makes it one of the few ways a veteran with no savings can close without bringing money.
Does Home Plus only work in certain parts of Arizona?
No. It's available statewide in every county, city and ZIP code, which sets it apart from programs that restrict assistance to targeted areas.
Do I have to be a first-time buyer?
No. Home Plus has no first-time buyer requirement, so you can use it if you've owned a home before. Many buyers assume they're excluded when they aren't.
Comparing programs? See all down payment assistance options or the Arizona FHA loan guide. Buying in rural Arizona? Compare Arizona Is Home, which trades a non-forgivable second for a lower first-mortgage rate.
Emmett Clark
Licensed Mortgage Loan Officer · NMLS #233747 · 20+ Years Experience
This article has been reviewed for accuracy by Emmett Clark, a licensed mortgage professional serving homebuyers across 18 states including California, Texas, Florida, Arizona, and Colorado. Last updated: October 2026.
About Emmett NMLS #233747
Emmett Clark (NMLS #233747) is a licensed mortgage professional with 20+ years of experience helping families achieve their homeownership dreams. Licensed in 18 states nationwide, Emmett specializes in finding the right mortgage solution for each client's unique situation. Powered by Loan Factory, Emmett provides access to competitive rates and a wide variety of loan programs including conventional, FHA, VA, and down payment assistance programs.
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