Arizona offers up to 5% in Home Plus down payment assistance, plus how its Prop 117 tax value cap carries over to new buyers instead of resetting at sale.

Updated: July 2026 | Source: HomePlusAZ.com (Arizona IDA) · AZ Dept. of Revenue · FHFA · HUD · Freddie Mac PMMS

Arizona Home Loans 2026 — Complete Guide

From 3.5% down FHA to 5% state-funded down payment assistance — here is what home buyers in Arizona can access in 2026.

Arizona caps how fast your taxable property value can grow each year, and unlike several neighboring states, that protection follows the property when it's sold rather than resetting. This guide covers loan limits, current rates, that cap, and the Home Plus programs available to general buyers this year.

$358,900

AZ median home price (2026)

6.55%

Avg. 30-yr conventional rate

Up to 5%

Home Plus down payment assistance

$541K–$609K

2026 FHA limits by county

The number people miss: Arizona's Prop 117 cap on taxable value growth does not reset when a home is sold — you inherit the seller's capped value and the 5% annual limit keeps working from where it left off. It's the same buyer-friendly mechanic as Oregon's Measure 50, and the opposite of what happens in California, Michigan, or New Mexico.

Arizona Down Payment Assistance — Home Plus & Arizona Is Home

The Arizona Industrial Development Authority (Arizona IDA) runs Home Plus, the state's only statewide DPA program, alongside a separate program with geographic exclusions.

Arizona Down Payment Programs

Home Plus0%–5% of loan amount, forgivable or non-forgivable options

Arizona Is Home4% — NOT available in Maricopa, Pima, or Chino Valley

Home in Five AdvantageMaricopa County-specific alternative

Home Plus is genuinely statewide and never runs dry: Unlike many other states' DPA programs, Home Plus is available in every county, city, and ZIP code in Arizona, is funded through capital markets rather than a depletable state allocation, and has no sunset date. The 2026 income limit is $155,386 (as of April 2026), and both forgivable (typically forgiven after 60 months) and non-forgivable options exist depending on the specific loan program you choose — ask your lender which structure applies.

Arizona Is Home skips the state's biggest counties: This program explicitly excludes Maricopa County (Phoenix metro), Pima County (Tucson), and Chino Valley — together covering most of the state's population. If you're buying in one of those areas, Home Plus or the Maricopa-specific Home in Five Advantage program are your paths instead.

Eligibility Requirements

Home Plus requires completion of a homebuyer education course, a qualifying credit score, and household income under the current program limit.

Confirm your exact eligibility and current income limit at HomePlusAZ.com before applying.

Current Rates

Product	Rate	Source
30-yr Conventional	6.55%	Freddie Mac PMMS, week of July 16, 2026
15-yr Fixed	5.93%	Freddie Mac PMMS, week of July 16, 2026
Home Plus first mortgage	Below market, reduced MI on conventional	Confirm current rate with a Home Plus-approved lender

2026 Loan Limits by County

Maricopa, Pinal, and Coconino counties carry elevated FHA limits reflecting Phoenix-metro and Flagstaff home prices. The rest of the state's counties, including Pima (Tucson), use the standard floor.

Area	FHA Limit	Conforming (Conventional) Limit
Standard counties (incl. Pima/Tucson)	$541,287	$832,750
Maricopa & Pinal (Phoenix metro)	$557,750	$832,750
Coconino (Flagstaff)	$609,500	$832,750

Conforming limits stay flat statewide — no Arizona county qualifies as high-cost for conventional financing. Verify your exact FHA figure at HUD.gov.

Property Tax in Arizona — Prop 117 Explained

What Buyers Should Budget For

Statewide average effective rate~0.52%–0.62%

Limited Property Value (LPV) growth cap5%/year primary residence, 10% other property

Resets on sale?No — LPV cap passes through to the buyer

Owner-occupied assessment ratio10% of Limited Property Value (Class 3)

Arizona uses a dual-value system: Full Cash Value (FCV), the assessor's market estimate, and Limited Property Value (LPV), the number your actual tax bill is calculated from. Since voters approved Proposition 117 in 2012, LPV growth is capped at 5% a year for an owner-occupied primary residence (Class 3) and 10% for other property, and — like Oregon's system — this cap is not reset by a sale. If a home's FCV has grown much faster than its LPV over years of ownership, the buyer inherits that same gap and protection. The cap can still be interrupted by a triggering event: significant new construction, reclassifying the home from owner-occupied to a rental, or an improvement worth more than $5,000. Arizona has no general dollar-amount homestead exemption, but does offer a county-administered income-based senior valuation freeze, filed via Form DOR 82514, separate from the automatic Prop 117 cap.

Pick Your Loan Type

FHA3.5% down, flexible credit ConventionalSkip MIP with 20% down USDA$0 down in eligible areas VA$0 down for veterans

Try the Loan Calculator Compare FHA, Conventional, USDA & VA with Arizona prices and current rates

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Are you a teacher, nurse, firefighter, police officer, EMT, or veteran? Arizona may run additional hero-specific loan programs on top of the general Home Plus options covered here. Browse the Hero Home Loan Programs hub and select Arizona for profession-specific options.

Frequently Asked Questions

Is Home Plus assistance forgivable?

It depends on the specific loan program you choose — Home Plus offers both forgivable options (typically forgiven after 60 months) and non-forgivable options. Confirm which applies to your loan before closing.

Can I use Arizona Is Home to buy in Phoenix or Tucson?

No. Arizona Is Home explicitly excludes Maricopa County, Pima County, and Chino Valley. Buyers in those areas should use Home Plus (statewide) or, in Maricopa specifically, the Home in Five Advantage program.

Will my property tax reset if I buy a home that's been owned for 20 years?

No. Arizona's Prop 117 cap on Limited Property Value passes through to you as the new owner rather than resetting to current market value, similar to how Oregon's system works and unlike California, Michigan, or New Mexico.

Does converting a home to a rental affect my property tax cap?

Yes. Reclassifying from owner-occupied (Class 3, capped at 5% annual growth) to a rental (a different class, capped at 10%) is one of the specific triggering events that can reset how the property is valued going forward.

Bottom Line: Arizona combines a reliable, never-exhausted statewide DPA program in Home Plus with genuinely low property tax protected by a buyer-friendly cap that survives a sale. Just confirm which counties Arizona Is Home actually covers before assuming it applies to your purchase, since it skips the state's two largest metro counties.

Disclaimer: This post is for informational purposes only and does not constitute financial, legal, or mortgage advice. Program terms, rates, income limits, and availability change frequently — verify all details directly with official program sources before making any financial decisions. StatewiseFinance is not affiliated with any government agency or lender listed in this post.