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.
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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