Arizona 'Pathway to Purchase' DPA Explained
The Pathway to Purchase (P2P) program is a highly targeted and incredibly powerful Down Payment Assistance (DPA) option. It was specifically designed to boost homeownership and stabilize property values in 17 targeted municipalities across Arizona that were historically impacted by housing downturns.
How Pathway to Purchase Works
Unlike standard 3% or 4% grants, the P2P program provides a massive injection of capital—offering a 30-year, 0% interest second mortgage to help buyers overcome the hurdle of the down payment.
- Assistance Amount: 10% of the purchase price (up to an absolute maximum of $20,000).
- Loan Type: 30-year fixed, 0% interest, with absolutely no monthly payments required on the second lien.
- Forgiveness: The loan is forgiven at a rate of 20% per year for 5 years. If you stay in the home as your primary residence for 5 years, it is 100% forgiven and never has to be repaid.
Who is Eligible in 2026?
Because the grant amount is so high, the P2P program has stricter geographical and financial requirements:
- Location is Everything: The property MUST be physically located in one of the 17 targeted cities. These include specific zip codes in Glendale, Phoenix, Tucson, Yuma, Casa Grande, and Sierra Vista.
- Income Limits: Your total household income must be below the program's limit (which adjusts annually based on HUD guidelines, typically around $122,100).
- Purchase Price Limit: The home's price must be below a set limit (historically around $488,850, though this is subject to FHFA updates).
- Credit Score: A minimum FICO score of 640 is typically required.
- Homebuyer Education: A certified homebuyer education course must be completed prior to closing.
Pathway to Purchase FAQs
Can I buy a home anywhere in Phoenix with this program?
Do I have to be a first-time homebuyer?
What happens if I refinance before 5 years?
Is your city eligible for $20,000?
The P2P program is one of the best-kept secrets in Arizona real estate. Apply today and we can quickly determine if you and your desired property zip code are eligible.
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Jonathan Moses
Senior Loan Officer | ✅ Verified 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.