Arizona 'Pathway to Purchase' DPA Explained
The Pathway to Purchase (P2P) program is a powerful down payment assistance (DPA) option designed to boost homeownership in specific, targeted municipalities in Arizona. It offers a forgivable loan to help buyers overcome the hurdle of the down payment.
This program is a key part of our first-time home buyer strategy.
How Pathway to Purchase Works
The P2P program provides a 30-year, 0% interest second mortgage that is fully forgivable after 5 years. This "silent second" loan can be used for your down payment and/or closing costs.
- Assistance Amount: 10% of the purchase price (up to a maximum of $20,000).
- Loan Type: 30-year fixed, 0% interest, no monthly payments.
- Forgiveness: The loan is forgiven at a rate of 20% per year for 5 years. If you stay in the home for 5 years, it is 100% forgiven and never has to be repaid.
Who is Eligible?
The P2P program has specific requirements:
- Location: The property MUST be in one of the 17 targeted cities, including parts of Phoenix, Glendale, Mesa, and Tucson.
- Income Limits: Your household income must be below the program's limit (e.g., around $122,100, but this can change).
- First-Time Homebuyer: This is generally intended for first-time buyers (those who haven't owned a home in 3+ years), but not always a strict requirement.
- Purchase Price Limit: The home's price must be below a set limit (e.g., around $488,850).
- Homebuyer Education: A homebuyer education course is required.
The P2P program is one of the best-kept secrets in Arizona real estate. Apply today and I can quickly determine if you and your desired property are eligible for this powerful program.
Jonathan Moses
Senior Loan Officer | NMLS #2064741
This guide was prepared by Jonathan Moses (NMLS #2064741), the senior loan officer and founder of Roadrunner AZ Lending. With years of experience in the Phoenix and Scottsdale markets, Jonathan is dedicated to providing expert, transparent advice. Learn more about Jonathan.