Pathway To Purchase

General Real Estate, Market Update

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The Arizona Department of Housing recently announced the launch of Pathway to Purchase. This is a new program for Arizonans statewide looking to become homeowners in select cities.

With the escalating increase in rents, many creditworthy renters are finding it more and more difficult to save for a down payment. Pathway to Purchase gives qualified buyers a true pathway to homeownership with a second mortgage provided as a deferred and potentially forgivable loan that can be used for down payment and closing cost assistance.

The ADOH Pathway to Purchase home loan program provides a 30 year, fixed rate mortgage with a down payment assistance (DPA) soft-second mortgage, equal to 10 percent of the purchase price (a maximum of $20,000), to qualifying homebuyers purchasing a primary residence which they intend to occupy. Cities applicable for this program are: Arizona City, Avondale, Buckeye, Case Grande, Coolidge, Douglas, El Mirage, Fort Mohave, Goodyear, Huachuca City, Laveen, Maricopa (city), Red Rock, Sierra Vista, Snowflake, Tucson and Yuma. The DPA is provided as a second lien against the property that can be used for the down payment and closing costs. The five year deferred loan will be forgiven at the completion of 5 years with no payments and no interest due. New construction and manufactured homes are not currently permitted.

The Pathway to Purchase program is available to homebuyers with an annual household income equal to or less than $89,088, purchasing homes not exceeding $356,352. First-time, boomerang and move-up should find this program especially helpful. Homebuyers must work through ADOH-approved and participating lenders to obtain a Fannie Mae HFA Preferred 30 year fixed mortgage. Funding for the Pathway to Purchase DPA Second Mortgage Program is provided by the U.S. Department of Treasury Hardest Hit Fund and funds are available on a first-come-first-serve basis.



The Arizona Department of Housing provides programs and critical resources to the most vulnerable populations of the state while serving as a driver for economic development and leveraging private capital. Whether it is through the work to provide safe and affordable housing, assistance to help aid the homeless and special needs populations, or their ongoing effort to prevent Arizonans from losing their homes, ADOH is committed to finding responsible and reasonable solutions to meet the housing needs for the people of Arizona. To learn more about AzHFA Pathway to Purchase DPA Second Mortgage Program, visit www. or call 602-771-1000.