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Learning CenterIf you have not owned any real estate in the past three years, you likely count as a first-time buyer. In Arizona, that can open local down payment assistance on top of national options like 3% down conventional, 3.5% down FHA, and 0% down VA or USDA. The right mix depends on your income, credit, and price range.
Last updated 2026-10-15 · Reviewed by Evan Cardenas, NMLS #1463065 · Licensed in AZ, CA, CO
For most programs, you are a first-time homebuyer if you have not owned any real estate in the past three years. That means many people who owned a home years ago qualify again. Some programs also count single parents who only owned with a former spouse, or people who owned a home not permanently affixed to a foundation. Each program sets its own definition, and some local programs drop the first-time requirement entirely—so it is always worth asking.
Sold your last home four years ago? You likely qualify as first-time again. Currently own any real estate, on your own or jointly with someone? You likely don't—though some programs and national loan options don't require first-time status at all.
State housing finance agencies, counties, and cities in Arizona offer grants, forgivable loans, and deferred second mortgages that help with down payment and closing costs. These are programs Evan sees used locally:
Statewide down payment and closing cost help of up to 4% as a no-interest, no-payment second mortgage that is forgiven after 5 years. You don't have to be a first-time buyer; borrower income must be $155,386 or less (as of April 6, 2026), and one borrower completes a homebuyer education course.
Program details (opens in new tab) →Down payment and closing cost assistance of 3% to 6% of the loan for homes anywhere in Maricopa County, paired with an FHA, VA, or qualifying Fannie Mae or Freddie Mac loan. It requires a 640 minimum credit score, income limits, and an 8-hour homebuyer education course; some assistance options have run out of 2026 funds, so ask which are open.
Program details (opens in new tab) →Program terms, income limits, and funding change often—confirm at the official source. Updated 2026-10-15.
Mesa and the East Valley remain among the Phoenix metro's more attainable pockets for buyers who want space and newer inventory, while Scottsdale and parts of north Phoenix often price higher for the same bedroom count. Inventory and days on market shift with rates, so buyers who are pre-approved and clear on payment comfort usually negotiate better than shoppers still guessing at affordability. Condos and townhomes can open doors at lower price points; always confirm HOA dues and any special assessments before you lock a budget.
For a full rundown of local costs and neighborhoods, see the Arizona homebuying guide.
Fannie Mae and Freddie Mac offer low-down-payment options with as little as 3% down, some with income limits and reduced mortgage insurance. PMI can be removed later.
Conventional →Flexible credit guidelines and 3.5% down with qualifying scores. No first-time requirement. Pairs well with many DPA programs.
FHA →For eligible veterans, service members, and some surviving spouses. No monthly mortgage insurance; a funding fee usually applies.
VA →For eligible rural and suburban areas when household income fits USDA limits. Includes an upfront and annual guarantee fee.
USDA →| Program | Minimum down | Mortgage insurance | Good fit when |
|---|---|---|---|
| Conventional low-down | 3% | PMI, removable with equity | Credit is solid and you want PMI to go away later |
| FHA | 3.5% | Upfront + annual MIP | Credit is still building or DTI is higher |
| VA | 0% | None monthly; funding fee | You have VA eligibility |
| USDA | 0% | Guarantee fees | The property and income fit USDA rules |
| Local DPA | Varies | Follows the first mortgage | You need help with down payment or closing costs |
FHA at 3.5% down = $9,800. Conventional at 3% = $8,400. With a local assistance program covering some of that, cash to close can drop further. Illustrative only, not a commitment to lend.
Usually, yes. Most assistance is designed to sit alongside a first mortgage—often FHA or conventional, sometimes VA or USDA. A few things to know:
Get the full picture on our first-time buyers page, run numbers in the affordability calculator, or browse all loan programs.
Compare your household income, target price, and county against each program's limits before you shop.
Pick FHA, conventional, VA, or USDA based on credit and down payment—then confirm which DPA programs pair with it.
Your pre-approval should show the assistance, the first-mortgage rate that comes with it, and your estimated cash to close.
Finish any required course and keep the certificate—many programs need it before closing.
Stay within price limits and leave enough time in the contract for program approval.
The lender reserves the assistance once you are under contract; both loans close together.
For most programs, someone who has not owned any real estate in the past three years. Specific programs can have additional exceptions or rules.
Options typically include state housing finance agency programs plus city or county assistance. See the local program cards on this page and ask Evan which ones fit your income and price.
No. FHA has no first-time buyer requirement. Some conventional 3% options and many DPA programs do have first-time or income rules.
Sometimes. Some programs are grants; others are forgivable or deferred loans that may be repaid when you sell or refinance. Always read the terms.
Many assistance programs and some low-down conventional options require one. Courses are usually online, take a few hours, and may cost little or nothing. Keep the certificate for your lender.
Often. Many assistance programs and some 3% down conventional options cap household income, usually based on area median income and household size. FHA and VA have no income limits; USDA does.
Educational answers only—not a loan offer or commitment to lend. Examples are illustrative only, not a commitment to lend.
We will check local assistance and national options against your income, credit, and target price. Call Evan at (480) 334-7827.