Pima IDA Secures $28M Boost to Aid First-Time Homebuyers with Downpayment Assistance

Pima County has announced the allocation of an additional $28 million for first-time homebuyers through its Lighthouse program. This initiative aims to provide both financial support and a pathway to homeownership in an increasingly challenging housing market.

The PimaTucson Lighthouse program offers a below-market fixed-rate mortgage and financial assistance covering up to four percent of the down payment. This down payment support can be forgiven after the recipient resides in their home for at least five years, a significant incentive for potential homeowners.

On average, participants benefit from around $15,000 in down payment assistance. Furthermore, the program offers a fixed mortgage rate of 6 percent, which is notably lower than the national average for 30-year fixed loans, currently at 6.63 percent.

According to county officials, financial barriers hinder nearly 40 percent of prospective homebuyers who cannot afford the down payment. The average price of a single-family home in Pima County has nearly doubled in less than six years, escalating from approximately $255,000 to nearly $500,000.

To qualify for the program, buyers must meet specific income and purchase price requirements, which vary based on whether the home is located in a designated area. Importantly, veterans and active-duty military personnel are exempt from the first-time homebuyer requirement when seeking assistance.

Since its inception in 2023, the Lighthouse program has facilitated approximately $150 million in mortgage loans, according to Pima IDA President Diane Quihuis. “Together, these initiatives are ensuring more individuals and families can secure a place to call home and develop intergenerational wealth,” Quihuis stated in a press release.

This seventh round of funding for the Lighthouse program, which was initiated by the Tucson and Pima County Industrial Development Authorities, has been financed through bonds. County officials expect a significant demand for these funds, anticipating they may be depleted by the end of March. Interested applicants should reach out to authorized lenders to apply.