Down Payment Assistance in Arizona: The Grant Program That Doesn’t Have to Be Repaid

Buying a home in Phoenix, Scottsdale, or anywhere in Arizona but stuck on the down payment? You are not alone — and you may have more options than you think. One of them is an actual grant: money toward your down payment that, in most cases, you never pay back.

For many Arizona buyers, it is not income or credit that stands between them and a home. It is the cash needed up front. Between the down payment and closing costs, the money required at the table is often the single biggest hurdle to homeownership. Down payment assistance (DPA) exists to solve exactly that problem, and the programs available today are more flexible than most buyers realize.

Below is a plain-English look at three down payment assistance options currently available through Rittman Lending Group, starting with the one that gets the most excitement: a true grant.

The Elevate Grant: Down Payment Help You Don’t Repay

Most “down payment assistance” you hear about is actually a second loan. It helps you get in the door, but it is still money you owe. The Elevate DPA Grant is different. It is structured as a grant, which means there is no second lien on your home and no repayment as long as you keep the loan in place.

Here is how it works in practical terms:

• On an FHA loan, the grant can be 2.0% or 3.5% of the purchase price (or appraised value, whichever is lower).
• On a conventional loan, the grant can be 1%, 2%, or 3%.
• The money can go toward your down payment, your closing costs, or both.
• There is no second mortgage and no monthly payment attached to the grant.

The one condition worth understanding: the grant is designed for buyers who plan to actually live in and keep the home. If the loan is paid off in full within the first six months, the grant amount gets added back to the payoff. For a normal buyer settling into a home, that is a non-issue — it simply exists to prevent the program from being used to flip a quick transaction.

Elevate is available for primary residences on purchase transactions, and it works with standard FHA and conventional loans as well as HomeReady and Home Possible.

Do You Qualify? Arizona Income Guidelines

For standard FHA and conventional loans, Elevate uses an income limit tied to the area median income (AMI). In the Phoenix–Mesa–Scottsdale area, the median family income figure HUD publishes is used as the baseline, and Elevate allows income up to 160% of that number for most buyers.

In plain terms: this is not a program only for very low incomes. The ceiling is high enough that a large share of Arizona working households fall under it. And there are important exceptions that waive the income limit entirely — including first-time homebuyers, active or retired first responders, educators, medical personnel, military, and civil servants, or when the home is in a designated underserved census tract.

Because HUD income figures update periodically and vary by household size, the smartest move is simply to have us run your specific numbers. It takes a few minutes and tells you exactly where you stand.

Two More Ways to Cover Your Down Payment

The Elevate grant is not the only tool. Depending on your situation, one of these may be a better fit.

Boost DPA — Forgivable or Repayable, With a Buydown Option

Boost is a flexible program available for FHA and USDA loans. It comes in two forms:

• A forgivable second of 3.5%. This is a 30-year second mortgage at 0% interest with no monthly payment. After 60 consecutive on-time payments on your first mortgage, you can request to have it forgiven.
• A repayable second of 3.5% or 5%, for buyers who want a larger amount of assistance and are comfortable with a small second payment.

Boost also stands out because it can be paired with a temporary rate buydown (a 2/1 or 1/0 structure, when paid by the seller or builder) — a helpful way to ease into your payment in the first year or two while still getting help with the down payment.

Aurora DPA — An FHA-Focused Option

Aurora is built for FHA buyers and also offers both a forgivable and a repayable structure:

• The forgivable second is 3.5%, a 30-year, 0% loan with no payment, forgiven after 36 consecutive on-time payments on your first mortgage.
• The repayable second is available at 3.5% or 5%.

One useful detail: on the repayable version of Aurora, there is no income limit at all. The forgivable version does carry an income cap, so it is worth reviewing which path fits you best.

How to Know Which Program Is Right for You

Here is the honest answer: it depends on your loan type, your income, your credit profile, and how long you plan to stay in the home. A first-time buyer in Mesa who qualifies for the Elevate grant with an income-limit waiver is in a very different position than a repeat buyer in Scottsdale who would do better with a repayable Boost second paired with a buydown.

That is exactly the kind of thing worth a short conversation. There is no cost to explore your options, and knowing what you qualify for often changes how — and how soon — you can buy.

Ready to See What You Qualify For?

Down payment assistance can be the difference between “someday” and “this year.” If you are buying anywhere in Arizona and want to know which of these programs fits your situation, let’s talk. We will look at your numbers, walk you through the options in plain language, and give you a clear picture of what is possible.

Marcus Rittman — Rittman Lending Group LLC
NMLS #2588913
Serving Phoenix, Scottsdale, and buyers across Arizona
Licensed in Arizona, Colorado, and Texas

Rittman Lending Group is a licensed mortgage broker. Program terms, availability, and eligibility requirements are subject to change and are determined by the loan investor. This article is for informational purposes and is not a commitment to lend or a guarantee of program eligibility. Contact us for current terms and to determine your specific qualification.