Down payment boost available for 1st-time homebuyers from Pima IDA

First-time homebuyers in Pima County can get help with down payments as well as advantageous interest rates through the Lighthouse program.

Applications open Wednesday, Sept. 11 on the Lighthouse website. Each round of funding can help about 90 homebuyers.

A collaborative program of Tucson and Pima County’s industrial development authorities, the program offers down payment help of 4% of a buyer’s loan amount, or an average of $15,000, along with a low fixed interest rate. Lighthouse rates stood at 5.84% as of Wednesday, compared to the national average of 6.35% for home loans, according to Federal Reserve data this week.

If buyers stay in their homes for five years, they do not have to repay the down payment assistance.

Buyers must meet income and purchase-price limits, which depend on whether their prospective home is in a targeted area.

A couple buying a home in a targeted area can have a combined income of up to $113,000, with a $624,000 price limit. A family can have an income of $131,000 and be eligible. Homes outside targeted neighborhoods can cost up to $501,000.

The program was established to help homebuyers during a time of rapidly rising prices. The median cost of a house in Pima County now stands at $394,700, an increase of $141,950 over the 2019 value of $252,750, according to the Pima IDA.

““”I’m very thankful for the Pima County Industrial Development Authority and its leadership in continuing this program and helping hundreds of first-time homebuyers secure the funding they need at affordable rates,” Adelita Grijalva, chair of the Pima County Board of Supervisors, said in a news release.

Pima County is making $25 million available in the latest round of funding.

“This program has helped fund approximately $150 million back into our community throughout 2023 and 2024, showcasing our commitment to creating access and fostering stability in our neighborhoods,” Pima IDA President Diane Quihuis said. “Together, these initiatives are ensuring more individuals and families can secure a place to call home and develop intergenerational wealth.”