Loan Programs:
Call for Today's Rate  |  30-Year Fixed  |  15-Year Fixed  |  FHA 30-Year  |  VA 30-Year  |  HELOC  |  DSCR  |  Jumbo  |  Call for Today's Rate  |  30-Year Fixed  |  15-Year Fixed  |  FHA 30-Year  |  VA 30-Year  |  HELOC  |  DSCR  |  Jumbo  | 

Arizona 'Pathway to Purchase' DPA Explained

A beautiful suburban home in one of Arizona's 17 targeted municipalities

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?
No. The Pathway to Purchase program is strictly limited to 17 specific targeted municipalities. While parts of Phoenix and Glendale are included, affluent areas like Scottsdale and Paradise Valley are entirely excluded from this specific program.
Do I have to be a first-time homebuyer?
While the program is heavily utilized by first-time buyers, it is not always a strict requirement depending on the specific funding cycle. However, the property must be your primary residence—you cannot use this to buy an investment property.
What happens if I refinance before 5 years?
Because the loan is forgiven at 20% per year, if you refinance or sell the home in year 3, 60% of the loan will have been forgiven, but you will be responsible for repaying the remaining 40% out of your home's equity.

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.

Check My Eligibility Now
Jonathan Moses, NMLS #2064741

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.

Ready to take the next step?

The journey to owning a home in Arizona starts with a simple conversation. Contact us today for your complimentary, no-obligation pre-approval.

Let's Get You Pre-Approved
Call (480) 382-5832