Arizona Mortgage Prequalification

Less than most buyers expect — and it depends on the loan, not the state. FHA allows 3.5% down with a 580+ credit score, several conventional programs start at 3% down, and VA and USDA loans require no down payment at all for eligible buyers. Down payment assistance can cover part or all of what's left. The CFPB's Owning a Home guide walks through the options, and our program guides break down each one.

$832,750 — the 2026 baseline set by the Federal Housing Finance Agency — and every one of Arizona's 15 counties sits at that baseline. In designated high-cost areas elsewhere in the country the ceiling reaches $1,249,125, but no Arizona county qualifies. Loans above the baseline need jumbo financing. The current table lives on FHFA's conforming loan limit page.

For 2026, the national floor of $541,287 applies in most Arizona counties (including Pima). Maricopa and Pinal counties — the Phoenix metro — sit at $557,750, and Coconino County (Flagstaff) is Arizona's highest at $609,500. FHA limits cap the base mortgage, not the purchase price. You can look up any county on HUD's official limit lookup.

Yes, through two doors. VA loans require no down payment and no monthly mortgage insurance for eligible service members, veterans, and surviving spouses — there is a one-time funding fee (2.15% of the loan amount on a first use with less than 5% down), which most borrowers finance. USDA loans also require nothing down for homes in eligible rural and suburban areas, with household income at or below 115% of the area median. Check an address on the official USDA eligibility site, and VA's program details on va.gov.

The workhorse is Home Plus: up to 4% of your loan amount statewide, as a 0%-interest, no-payment second mortgage that is forgiven after five years, with a household income cap of $155,386 and a 620 minimum credit score. In Maricopa County, Home in Five Advantage offers up to 6% (640 minimum score) — though its funding arrives in tranches and some options pause when a tranche runs out. City and county programs exist beyond these. Program terms are on the Arizona IDA site and homein5advantage.com — and our first-time buyer guide below the FAQ compares them all.

Sometimes — read the terms before you count on it. Home Plus is fully forgiven after 60 months of ownership; sell or refinance inside the first five years and it's repaid in full. Home in Five's options vary by tier, and its longest forgivable option was fully utilized in mid-2026. Arizona Is Home, the rural program, moved to a non-forgivable deferred second in 2026. Forgiveness terms are on the Arizona IDA's program pages — and we'll confirm what's currently funded before you apply.

There's no single statewide cutoff — it's set by the loan program and your lender. FHA's published structure allows 3.5% down at a 580 score; USDA sets no credit-score requirement at all (your lender applies its own standards); VA sets no minimum, though lenders commonly do; and the Arizona assistance programs carry their own floors — 620 for Home Plus, 640 for Home in Five. USDA's program standards are on rd.usda.gov, and our program guides cover each one's specifics.

On a first use of the benefit, the fee is 2.15% of the loan amount with less than 5% down, 1.5% with 5% or more, and 1.25% with 10% or more (rates are higher after your first use). It's a one-time fee — pay it in cash or finance it — and veterans receiving compensation for a service-connected disability are exempt. The current tables are on VA's funding fee page.

Once you're under contract, expect roughly a month or so: the industry's most recent origination data put average closing times around 37 days (ICE Mortgage Technology, checked October 2026). House hunting and offer negotiation come before that — some buyers find the home in a weekend, others take months. Closing costs are part of the budget too; the CFPB's Owning a Home guide explains what to expect at the table.