AskChad.

03Guide · 5 min read

The number that matters is not "down payment." It is cash to close — down payment plus closing costs minus any credits and assistance. Buyers routinely over-save for one and forget the other entirely.

Cash to close, defined

Down payment + closing costs + prepaids (taxes and insurance set up in escrow) − seller credits − lender credits − assistance = cash to close. Chad gives you this number on day one and updates it with every offer.

Gift funds are normal

Family can gift your down payment on conventional, FHA, VA and USDA loans. There is a simple gift letter and a paper trail — Chad walks your family through it so nobody is surprised at underwriting.

Arizona HOME+PLUS

The Arizona IDA's HOME+PLUS program pairs a 30-year fixed first mortgage with down payment and closing cost assistance anywhere in the state — a percentage of the loan amount, no monthly payment, forgiven if you stay. One statewide income limit, and you do not have to be a first-time buyer.

Home in Five and Housing New Mexico

Maricopa County runs Home in Five Advantage, with a little extra for teachers, first responders, veterans and healthcare workers. Across the line, Housing New Mexico pairs FirstHome with FirstDown for first-time buyers. Funds and rules change through the year — Chad checks what is open the week you are buying, and which single program saves you more.

Seller and lender credits

A seller can agree to pay part of your closing costs. A lender credit trades a slightly higher rate for lower upfront cost. Both are tools, not tricks, and both have program limits.

What to leave in the bank

Underwriters like reserves and so should you. Draining every dollar to close is how new homeowners end up putting a water heater on a credit card. Build the plan with a cushion.

Chad · Loan Officer
my parents want to help with the down payment. is that allowed?
Absolutely — gift funds are allowed on every major program. I will send them a one-page gift letter and tell you exactly how the transfer should look so underwriting is a non-event.

Quick answers

What are closing costs on a house in Arizona?

Closing costs typically run roughly 2–4% of the purchase price and include lender fees, title and settlement charges, recording fees, and prepaid taxes and insurance. The exact figure appears on your Loan Estimate.

Can I use a gift for my down payment?

Yes. Gift funds from family are allowed on conventional, FHA, VA and USDA loans. A gift letter and documentation of the transfer are required.

Is down payment assistance a grant or a loan?

Usually it is a second loan — often deferred with no monthly payment, repaid when you sell or refinance. Some programs include forgivable portions. Chad explains the exact terms of your version before you commit.

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