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Updated · Mike Certo, NMLS #260555

Arizona Mortgage Programs: Complete 2026 Guide

Arizona buyers have more mortgage program options than most realize. Beyond the standard conventional / FHA / VA / USDA decision, Arizona has a robust DPA program ecosystem, strong NonQM lender network for self-employed buyers, and active jumbo / bridge / investor markets. Here's the full Arizona program map.

By Mike Certo, NMLS #260555 —

Standard loan programs in Arizona

Conventional

30-year fixed (most common) or 15-year fixed. 3% down minimum (Conventional 97), with 5%, 10%, 20% down tiers. Private mortgage insurance below 20% down, drops off at 78% LTV. Best fit for buyers with 720+ FICO and modest-to-strong down payment.

FHA

3.5% down, 580+ FICO published (620+ practical lender overlay). Lifetime mortgage insurance on most modern FHA loans. Best fit for first-time buyers with lower credit or smaller down payments.

VA

Zero down for eligible veterans, surviving spouses, and active-duty military. No private mortgage insurance. VA funding fee (financed; waived for qualifying disability). Best fit for any eligible veteran/military buyer.

USDA

Zero down for primary residences in USDA-eligible rural areas. Income caps apply. Many Arizona counties have USDA-eligible pockets — Eastern Shore, Western Maryland, parts of the Southwest. Best fit for moderate-income buyers in eligible rural Arizona areas.

Down payment assistance programs

Arizona has 10+ active DPA programs. The headline options:

  • Home Plus: Statewide, 1-5% DPA depending on tier
  • Home In 5 Advantage: Maricopa County only, 4% grant
  • Pima Tucson HBS: Pima County only, up to 5% as forgivable second
  • Flagstaff CHAP: Coconino/Flagstaff city, up to $50K with 10:1 match
  • Chenoa Fund: National, FHA pairing, 600+ FICO
  • Arrive Home: National, FHA pairing, forgivable after 36 months
  • Essex/NHF: National, down payment + closing cost assistance

Full coverage: Down Payment Assistance Arizona.

Self-employed and NonQM programs

For Arizona self-employed buyers whose tax returns don't reflect actual income:

  • Bank statement loans — average business or personal deposits with expense factor
  • 1099-only loans — qualify on 1099 gross receipts
  • P&L only loans — CPA-prepared profit and loss as income basis
  • Asset utilization and asset qualifier — qualify on liquid assets
  • DSCR loans — investor property, qualifies on rental income

Full coverage: Self-Employed Loans Arizona.

Jumbo programs

For Arizona purchase prices above the conforming limit:

  • Full doc jumbo — standard documentation
  • Alt doc jumbo — bank statement, P&L, asset-based
  • Medical Professionals jumbo — up to 100% LTV no PMI for credentialed buyers (MD, DO, DDS, DMD, DPM, DVM, PharmD, etc.)
  • Super jumbo — above $2M, often $3M+ in Scottsdale, Paradise Valley, Sedona

Full coverage: Arizona Jumbo Loans.

Bridge and buy-before-you-sell

For Arizona move-up buyers needing equity from the current home for the next down payment:

  • Bridge loan — short-term loan against current home
  • Guaranteed Backup Contract — removes existing home PITIA from DTI

Full coverage: Buy Before You Sell Arizona.

Investor programs

For Arizona real-estate investors:

  • DSCR loans — qualify on property rental income
  • Short-term rental DSCR — Airbnb/VRBO projections
  • Portfolio loans — for scaling beyond conforming 10-property limits

Full coverage: Investor Loans Arizona.

Program decision checklist

  1. Are you eligible for VA? → Almost certainly VA
  2. Are you a first-time buyer with limited cash? → FHA + DPA
  3. Are you buying in a USDA-eligible Arizona area? → Consider USDA
  4. Strong credit + 20%+ down? → Conventional
  5. Self-employed with strong deposits? → NonQM bank statement
  6. Above conforming limit? → Jumbo (Medical Professionals if eligible)
  7. Need to buy before selling current home? → Bridge or backup contract
  8. Buying investment property? → DSCR

Next step

20-minute first call narrows from this list to the 2-3 programs that fit your scenario. We then run preliminary qualifying numbers.

FAQ

Which is better for Arizona first-time buyers: FHA or Conventional 97?

Depends on FICO and down payment. Below 680 FICO, FHA usually wins. 720+ FICO with 5%+ down, conventional usually wins on total cost over 7+ years because PMI cancels. We model both during the consult.

Can I combine DPA with a jumbo loan?

Generally no — most DPA programs are designed for the conventional and FHA loan size range. Jumbo and DPA rarely combine cleanly.

Does Cornerstone work with all Arizona DPA programs?

Yes — we run the full menu: Home Plus, Home In 5, Pima Tucson HBS, Flagstaff CHAP, plus national programs (Chenoa, Arrive, Essex/NHF).

What if I don't fit any standard program?

NonQM (bank statement, P&L, asset qualifier) covers most "edge" scenarios — self-employed with deductions, recently retired with assets, investors with multiple properties, foreign nationals. Plus portfolio loans handle the remaining edge cases.