PIMA COUNTY, (March 10, 2025) – The Pima County Industrial Development Authority (Pima IDA) has launched another offering of the highly successful PimaTucson LIGHTHOUSE program, an initiative designed to assist first-time homebuyers.
With another commitment of $28 million of bonds, LIGHTHOUSE 7.0 offers a below-market fixed-rate mortgage that also comes with substantial down payment assistance equal to 4% of the loan amount.
This collaborative program between the Pima IDA and the lenders is a direct response to a housing market that has become increasingly less affordable for homebuyers. The median single family home price in Pima County has increased by close to 100% since the end of 2019, from around $255,000 to nearly $500,000.
In that time, federal interest rates, which mortgage interest rates are tied to, rose from 2.5% to as high as 8.5%. These two economic factors have made buying a home much harder for the average Pima County resident.
The Pima IDA and the Pima County Board of Supervisors have risen to this challenge by establishing a bond-funded down payment assistance program that locks in a fixed low-interest mortgage rate of 6%. One unique advantage of LIGHTHOUSE 7.0 is that once the homebuyer has lived in their home for at least five years, the 4% down payment assistance is converted to a grant. On average, this 4% assistance equates to approximately $15,000.
"We’re thrilled to re-launch the seventh iteration of the Lighthouse Program, which has been a beacon of opportunity for aspiring homeowners,” said Pima IDA President Diane Quihuis.
“Pima IDA, with its partner Tucson IDA, has prioritized innovative solutions in a market full of uncertainty, ensuring our community can access homeownership. The Pima IDA, through this program, has helped fund approximately $150,000,000 of mortgage loans to benefit our community throughout 2023 and 2024, showcasing our commitment to creating access and fostering stability in our neighborhoods. Together, these initiatives are ensuring more individuals and families can secure a place to call home and develop intergenerational wealth.”
This round of funding will benefit about 100 first-time homebuyers in Pima County.
Nearly 40% of potential home buyers say insufficient funds for a down payment prevent them from securing a home. The LIGHTHOUSE 7.0 program addresses the biggest obstacle facing first-time homebuyers with down payment assistance support. Importantly, the interest rate remains unaffected even if the Federal Reserve increases interest rates, offering homebuyers a sense of security in these uncertain times.
“We are extremely proud to see the IDA’s Lighthouse program continue with Lighthouse 7.0,” said Rex Scott, chair of the Pima County Board of Supervisors.
“This program, in collaboration with Pima County, the Pima County IDA and the Tucson IDA, is critical to creating the opportunity for prospective homebuyers to purchase their first home at a competitive interest rate and with potential forgivable down payment assistance. This program not only strengthens homeownership across Pima County but enhances the quality of life of our community members, as well as our economic competitiveness.”
Given the anticipated first-come, first-served demand for LIGHTHOUSE 7.0, it is expected that the funds will be fully allocated before the end of March 2025. Lenders interested in offering the program can obtain detailed information at www.housinginnovationhub.org/program-lighthouse.
Photo: Corazon Del Pueblo is a sub-division that was developed by Habitat For Humanity Tucson in partnership with four local private homebuilders.