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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. Casa Grande outskirts, Sierra Vista, Prescott Valley, Show Low/Pinetop, and much of small-town Arizona. 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.