Arizona Mortgage Guide 2026
This Arizona mortgage guide covers everything you need to know about getting a mortgage in Arizona — FHA loan limits by county, HOME Plus down payment assistance, property taxes, closing costs, and the 2026 Arizona housing market outlook.
Arizona Mortgage Guide: Loan Limits by County (2026)
Most Arizona counties are at or near the national FHA floor. Flagstaff (Coconino County) and the Phoenix metro (Maricopa County) have slightly higher limits due to above-average home prices.
| County | Conforming Limit | FHA Limit | Notes |
|---|---|---|---|
| Apache | $832,750 | $541,287 | National floor |
| Cochise (Sierra Vista) | $832,750 | $541,287 | National floor |
| Gila | $832,750 | $541,287 | National floor |
| Graham | $832,750 | $541,287 | National floor |
| Greenlee | $832,750 | $541,287 | National floor |
| La Paz | $832,750 | $541,287 | National floor |
| Maricopa (Phoenix) | $832,750 | $557,750 | Slightly above floor |
| Mohave | $832,750 | $541,287 | National floor |
| Navajo | $832,750 | $541,287 | National floor |
| Pima (Tucson) | $832,750 | $541,287 | National floor |
| Pinal | $832,750 | $557,750 | Slightly above floor |
| Santa Cruz | $832,750 | $541,287 | National floor |
| Yavapai (Prescott) | $832,750 | $541,287 | National floor |
| Yuma | $832,750 | $541,287 | National floor |
| Coconino (Flagstaff) | $832,750 | $609,500 | Higher cost market |
FHA limits vary by county. Most Arizona counties sit at the $541,287 national floor, but Maricopa, Pinal, and Coconino counties are higher. Always verify your specific county at HUD’s official FHA limit lookup tool, and confirm conforming limits at FHFA’s conforming loan limit page.
Loan Programs Available in Arizona
All major federal mortgage programs are available statewide in Arizona. Here’s how each compares for Arizona buyers:
| Program | Min Down Payment | Min Credit Score | Best For |
|---|---|---|---|
| FHA | 3.5% | 580 | First-time buyers, lower credit scores |
| VA | 0% | 580–620 | Veterans, active duty, surviving spouses |
| USDA | 0% | 640 | Rural Arizona buyers meeting income limits |
| Conventional | 3–20% | 620 | Strong credit, wants PMI cancellation |
| HOME Plus FHA | 3.5% | 640 | FHA + AZ grant for down payment |
| HOME Plus Conventional | 3% | 640 | Conventional + AZ grant for down payment |
HOME Plus Assistance Program
HOME Plus is Arizona’s flagship down payment assistance program, administered through the Arizona Industrial Development Authority (IDA). It provides assistance structured as a forgivable second mortgage — if you stay in the home for 5 years, it never needs to be repaid.
| Program | Assistance Amount | Structure | Key Requirements |
|---|---|---|---|
| HOME Plus (FHA, VA, USDA, Conventional) | Up to 4% of the first mortgage loan amount | Forgivable second mortgage — forgiven after 5 years, repaid if you sell or refinance sooner | Min credit score 640 (some variations allow 620); income limit $155,386 statewide (as of 4/6/2026); open to first-time and repeat buyers; homebuyer education required for first-time buyers |
HOME Plus is one of the most accessible DPA programs in the country. It is available to both first-time and repeat buyers, works with all major loan types, and is structured as a forgivable second mortgage rather than a traditional repayable loan. The income limit is the primary qualifying constraint. Confirm current terms at homeplusaz.com.
Arizona Property Taxes
Arizona has one of the lowest effective property tax rates in the western US at roughly 0.45%–0.6% statewide (estimated). This makes the monthly payment on an Arizona home significantly more affordable compared to states like New York, New Jersey, or Illinois at similar purchase prices.
Arizona uses an assessed value system where residential property is assessed at 10% of its full cash value. Tax rates (set per $100 of assessed value) are then applied to that 10% assessed value — not the full market value.
| Purchase Price | Est. Annual Tax (0.5%) | Monthly Escrow |
|---|---|---|
| $350,000 | ~$1,750 | ~$146/mo |
| $450,000 | ~$2,250 | ~$188/mo |
| $550,000 | ~$2,750 | ~$229/mo |
| $700,000 | ~$3,500 | ~$292/mo |
Arizona Primary Residence Assessment: Residential property is assessed at just 10% of full cash value before tax rates are applied. This is already factored into the 0.45%–0.6% effective rate range above and is one reason Arizona property taxes remain low despite rising home values.
Closing Costs in Arizona
Arizona has relatively low closing costs compared to most states. There is no state mortgage tax, no deed transfer tax at the state level, and closings are handled by escrow companies (no attorney required).
| Fee | Typical Amount | On a $450,000 Purchase |
|---|---|---|
| Loan origination fee | 0–1% of loan | $0–$3,600 |
| Title insurance (lender’s) | Based on loan amount | ~$900–$1,500 |
| Owner’s title insurance | Based on purchase price | ~$1,200–$2,000 |
| Escrow fee | Typically split 50/50 or buyer pays all | ~$800–$1,500 |
| Appraisal | Paid upfront or at closing | ~$500–$700 |
| Recording fee | Per document, county-set | ~$30–$60 |
| Homeowner’s insurance (prepaid) | First year premium | ~$800–$1,500 |
No transfer tax note: Because Arizona does not levy a real estate transfer tax or mortgage recording tax, buyers and sellers avoid costs that run into the thousands of dollars in many other states. Always confirm exact fees with your title/escrow company before closing.
Arizona Housing Market Overview (2026)
Arizona has been one of the fastest-growing states in the country for over a decade. Population growth driven by remote work migration, retiree demand, and relatively affordable prices compared to California have all contributed to a competitive housing market.
| Area | Market Notes |
|---|---|
| Phoenix / Maricopa County | Largest and most competitive metro; sellers expect a full pre-approval letter, not just a pre-qualification |
| Scottsdale / East Valley | High-demand relocation and luxury market; multiple-offer situations remain common |
| Tucson / Pima County | More affordable than Phoenix; steady growth driven in part by the University of Arizona |
| Sierra Vista / Cochise County | Military-adjacent market near Fort Huachuca; VA loans close reliably and VA buyers should not be disadvantaged |
| Flagstaff / Coconino County | Higher-cost mountain market; limited inventory relative to demand |
| Rural Arizona (most other counties) | More affordable; inventory has improved and inspection contingencies have returned to normal since the 2022 peak |
