Arizona DPA for Non-First-Time Home Buyers: Yes, You Qualify
You don't have to be a first-time buyer to get Arizona down payment assistance. HOME Plus and PTHS are available to repeat buyers. Here's how it works.
Arizona's major down payment assistance programs — HOME Plus and the Pima Tucson Homebuyer's Solution — are available to both first-time and repeat buyers, making them accessible to a much wider range of Arizona households than most buyers realize. According to the Arizona Industrial Development Authority, the only geographic exception is the Pathway to Purchase program, which is restricted to specific zip codes in targeted communities — all other statewide DPA programs carry no first-time buyer requirement.
Do You Have to Be a First-Time Buyer for Arizona DPA?
No. One of the biggest misconceptions about Arizona down payment assistance is that it's only for first-time home buyers. The truth is: both HOME Plus and PTHS are available to repeat buyers.
Key Fact: The Arizona IDA removed the first-time buyer requirement from HOME Plus to help more Arizona families access homeownership assistance.
Which Arizona DPA Programs Allow Repeat Buyers?
| Program | First-Time Buyer Required? | Notes |
|---|---|---|
| HOME Plus | No | Available to all buyers |
| PTHS | No | Available to all buyers |
| PTHS Edge | No | Below-market rate option |
| Lighthouse Program | Yes* | *Currently fully utilized |
The Lighthouse Program does require first-time buyer status but is currently not accepting new applications due to funding.
What Qualifies as a "First-Time Buyer" Anyway?
Even though HOME Plus and PTHS don't require it, understanding the HUD definition is useful:
HUD's First-Time Buyer Definition:
- Have not owned a home in the past 3 years
- Displaced homemakers qualify regardless of previous ownership
- Single parents who owned with a former spouse qualify
If you owned a home more than 3 years ago, you technically qualify as "first-time" under HUD rules—but again, Arizona's main DPA programs don't require this anyway.
Why Arizona Removed the First-Time Buyer Requirement
Arizona recognized that many families need down payment assistance beyond their first home:
- Job relocations: Workers moving to Arizona from other states
- Family changes: Divorce, growing families needing larger homes
- Market conditions: Previous homeowners priced out of today's market
- Medical situations: Homeowners who sold due to health issues
By opening DPA to all buyers, Arizona helps more families achieve homeownership.
Real Scenarios: Repeat Buyers Using Arizona DPA
Scenario 1: The Relocator
Background: James sold his Colorado home 2 years ago, moved to Phoenix for work. Challenge: Proceeds from Colorado sale went to pay off debts Solution: HOME Plus provided $17,000 DPA for his new Phoenix home Outcome: Closed with less than $2,000 out of pocket
Scenario 2: The Upsizer
Background: The Garcia family owns a 1,200 sq ft condo in Tempe. Challenge: Growing family needs a larger home; limited savings Solution: Sold condo, used equity for expenses; HOME Plus covered down payment on new home Outcome: Moved into 2,400 sq ft home in Mesa
Scenario 3: The Restart
Background: Susan went through divorce, home went to ex-spouse. Challenge: Starting over with limited savings Solution: As a "displaced homemaker," qualified for both first-time and repeat buyer programs; chose HOME Plus Outcome: Purchased a Scottsdale townhome with $14,000 DPA
How Repeat Buyers Apply for Arizona DPA
The process is identical for first-time and repeat buyers:
- Check eligibility: Income below $136,609, credit score 640+
- Get pre-approved: Work with a DPA-participating lender (like Cornerstone First)
- Complete homebuyer education: Required 6-8 hour online course
- Find your home: Work with a real estate agent in Arizona
- Close with DPA: Receive up to 5% toward down payment and closing costs
Do Repeat Buyers Get Less DPA?
No. The DPA amount is the same for first-time and repeat buyers:
- HOME Plus: Up to 5% of loan amount
- PTHS: Up to 5% of loan amount
There's no penalty or reduction for having owned a home before.
What If You Currently Own a Home?
You can still qualify for DPA on your new home as long as:
- Your new home will be your primary residence
- You sell or refinance your current home before or at closing
- You meet income and credit requirements
We can help you structure the transaction to ensure smooth DPA approval.
Frequently Asked Questions
Can I use DPA if I own a rental property?
Yes, as long as your new home will be your primary residence. Owning rental properties doesn't disqualify you from DPA.
What if I owned a home with my ex-spouse?
You may qualify as a "displaced homemaker" under HUD rules, giving you first-time buyer status. But remember—Arizona's main programs don't require this anyway.
Can I use DPA to buy a second home or vacation home?
No. DPA is only available for primary residences. You must live in the home as your main residence.
How do I prove I sold my previous home?
Provide the HUD-1 or Closing Disclosure from your previous sale. If you transferred ownership through divorce, provide the divorce decree.
Get Started
Whether you're a first-time buyer or a repeat buyer, Arizona DPA can help you achieve homeownership. Take our 60-second quiz to check your eligibility:
- Tanner Cook: (480) 420-4918 | NMLS #2090424
- Zac Cook: (480) 406-2016 | NMLS #2111496
Cornerstone First Mortgage, NMLS #173855. Equal Housing Lender.
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