How Grant Money Works

You really can buy a home with little or no money down with a qualified Grant or Down Payment Assistance program in Arizona.

Arizona has a number of home buying grants that are available in conjunction with your Conventional, FHA, or VA financing. These grants are offered through the Federal Housing Administration, State, Counties, and local government agencies.

These government sponsored programs are designed to assist you with the purchase of your home, to help people move into their area.

Many of these grants are given to people without repayment if they stay in their home for three years.

The government offers these home grants because cities and counties benefit from a home ownership, through property taxes, merchant services, utilities, etc. Home owners also tend to stay in the area longer and take better care of their property because they one it. In many cases if the you need to sell before the three-year mark, the grant is prorated from the sale of the home and the homeowner gets the remaining proceeds.

Home buying grants are designed to assist you with the required down payment of your loan. For example, if a buyer is purchasing a $300,000 home, then the required FHA down payment is 3.5%, or $10,500. With a $15,000 grant, the buyer has zero money down, and the remainder of the grant goes toward a closing costs or a loan reduction.

Common requirements on grant and down payment assistance programs include: income requirements, debt ratios, and a minimum credit score.

Some grants require that you are a first time buyer and others do not. With most programs a “first time home buyer” is defined as anyone who has not owned a home in the past three years.

Government grant programs can run out of money, and must wait to have funds reallocated, so apply now, because these programs work on a first-come first-serve basis.

Buying a home with little or no money down has never been easier. Arizona has many Grants & Down Payment Assistance programs available to help assist you with the purchase of your next home. Usually these programs are given to help you qualify for a mortgage, by providing the required down payment at closing. Some grants are offered to help rehabilitate a home in a government sponsored revitalization area. These programs help keep areas from becoming run down and keep real estate values stable. We have found that people are most successful with qualifying and effectively using these programs when they work with one of our Certified Local Specialist. Some down payment assistance programs require you to pay the money back, with low monthly payments or when you sell the property. Other grants you don’t have any repayment at all, as long as you stay in the home for a certain period of time. Don't let the lack of a down payment stop you from buying a home, live the American Dream of home ownership and apply today!