Down Payment Assistance Program

Open

City of Tucson Housing and Community DevelopmentAZFirst-Time Homeowner

Funding: Provides a deferred payment assistance loan of up to 20 percent of the contract sales price that can be applied to down payment and allowable closing costs on eligible homes in Tucson and Pima County, subject to purchase price limits and affordability review.Locally administered deferred payment down payment assistance loan funded with HOME and related resources that can cover up to 20 percent of the contract sales price, with no monthly payments and repayment generally due if the home is sold or no longer a primary residence during the affordability period.RollingDeadline: Scope: Regionalstate

Updated: Dec 6, 2025

Summary

Tucson and Pima County down payment assistance loan program offering up to 20% of the purchase price in support for income-eligible first-time buyers.

Benefits

down payment assistanceclosing cost assistancedeferred loanaffordable homeownershiphomebuyer education

Who Can Apply

homebuyerfirst-time homebuyerlow-income homebuyerTucson residentPima County resident

Eligible Locations

First time homebuyers with household income at or below 80 percent of area median income purchasing a primary residence in the City of Tucson or Pima County, excluding Tribal lands, who contribute at least 1000 dollars of their own funds, maintain three months of mortgage reserves, meet program debt to income caps, complete HUD certified homebuyer counseling and qualify for an approved fixed rate mortgage on a property that meets HUD standards.

Eligibility

First-time homebuyers purchasing a primary residence in the City of Tucson or Pima County (excluding Tribal lands) with household income at or below 80% AMI, who contribute at least $1,000 of their own funds, have three months of mortgage reserves, meet DTI caps (typically ≤35% housing / ≤45% total), complete HUD-certified homebuyer counseling, and qualify for an approved fixed-rate mortgage.

Full Description

Tucson’s Down Payment Assistance Program, administered by the City’s Housing and Community Development department, helps first-time homebuyers bridge the gap to homeownership in the City of Tucson and Pima County. The program can provide assistance of up to 20% of the contract sales price in the form of a deferred-payment loan. There are no monthly payments on the assistance; repayment is generally due if the home is sold, transferred, or otherwise no longer occupied as the buyer’s primary residence during the affordability period. To qualify, households must earn at or below 80% of Area Median Income, contribute a minimum of $1,000 of their own funds (which can include inspection costs), maintain at least three months of mortgage payments in reserves, and meet strict debt-to-income ratios. Buyers must complete HUD-approved homebuyer education and counseling and obtain a fixed-rate mortgage that meets program standards (no ARMs). The property must meet HUD housing quality standards, pass inspection, and fall under established purchase price limits for new and existing homes. Partner counseling agencies support applicants through budgeting, readiness, and the full home-purchase process.

Verification & Details

Status: Open

Source: tucsonaz.gov

Official source → tucsonaz.gov

Apply on official siteUpdated Dec 6, 2025

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