Programs comparison
Arizona mortgage programs in 2026 — full comparison
Arizona buyers have access to 5+ main loan programs. Picking the right one shapes your monthly payment, down payment requirement, total cost, and qualification odds. Here's the full comparison.
Side-by-side comparison
| Factor | FHA | VA | USDA | Conventional |
|---|---|---|---|---|
| Down payment | 3.5% | $0 | $0 | 3-20% |
| Upfront fee | FHA upfront MIP (financed) | VA funding fee (financed; waived for qualifying disability) | USDA upfront guarantee fee (financed) | None on standard conventional |
| Monthly MI | 0.55% for life | None | 0.35% | 0.50-1.00% (until 78% LTV) |
| Min FICO | 580 | 580-620 lender overlay | 640 | 620 (740+ best pricing) |
| 2026 AZ loan limit | $498K-$562K varies by county | $832,750 (jumbo above with entitlement) | Varies (often conforming) | $832,750 baseline |
| Income limits | None | None | Yes — 115% AMI | None |
| Geographic limits | None | None | USDA-eligible rural areas only | None |
| Cash-out refi limit | 80% LTV | 100% LTV | Limited | 80% LTV |
FHA — best for first-time buyers with limited cash + average credit
When FHA wins for AZ buyers
- Credit 580-619 — FHA accepts where VA and conventional often don't
- Limited savings — 3.5% down is achievable for many first-time buyers
- Non-occupant co-borrower needed (parents helping kids buy) — FHA is more flexible
- Buyer can't qualify for VA (not a veteran or doesn't have eligibility)
When FHA loses
- You qualify for VA — almost always better than FHA for veterans
- You have 20%+ down + strong credit — conventional usually wins
- You're buying above $498K-$562K AZ limits — FHA can't fund it
For first-time AZ buyers, see our First-Time Home Buyer Loans Arizona site for detailed FHA scenarios.
VA — best for AZ veterans (any rating)
When VA wins for AZ buyers
- Any VA eligibility — almost always the best deal for veterans
- Any disability rating 10%+ — funding fee waived, decisive advantage
- Limited down payment savings — $0 down is hard to beat
- Want to preserve cash for moving + reserves
- Want maximum cash-out flexibility — 100% LTV on VA cash-out
When VA might not be best
- Buying second home or investment property — VA requires primary residence; use conventional
- 740+ FICO + 20% down + no disability — conventional may have slightly lower cost
For deep AZ VA specifics: azvaloanexperts.com — our AZ VA loan specialist site with 70+ pages of AZ-specific content.
USDA — best for AZ buyers in eligible rural areas with income limits
When USDA wins
- Buying in USDA-eligible AZ area — Casa Grande outskirts, Sierra Vista, Prescott Valley, Show Low/Pinetop, Pahrump area, much of small-town AZ
- Income under 115% AMI (typically $80K-$130K family of 4 in AZ counties)
- $0 down preferred + no VA eligibility
- 640+ FICO
When USDA loses
- Buying in metro Phoenix or Tucson core — not USDA-eligible
- Income exceeds 115% AMI — disqualified
- VA-eligible — typically VA matches or beats USDA
Conventional — best for buyers with strong credit + savings
When conventional wins
- 740+ FICO + 20%+ down — best rate tier, no PMI
- Buying second home or investment property — only conventional supports these
- Already have substantial savings + want PMI to drop at 78% LTV — vs FHA's permanent MIP
- High earner not qualifying income-wise for USDA
When conventional loses
- $0-down needed — conventional requires at least 3% down (first-time) or 5% (standard)
- Below 680 FICO — FHA or VA usually price better
- VA-eligible with limited cash — VA wins
Jumbo loans (above $832,750 in AZ 2026)
For higher-end AZ purchases (Scottsdale, Paradise Valley, Sedona, parts of Tucson Catalina Foothills):
- VA Jumbo — $0 down with full entitlement; rates slightly above standard VA
- Conventional Jumbo — typically requires 10-20% down; competitive rates
- Bank statement jumbo for self-employed AZ buyers — alternative documentation
For deep AZ jumbo specifics, see Arizona Jumbo Loans.
Niche programs worth knowing
- DSCR loans for AZ investors — qualify based on rental income, not personal income. See Investor Loans Arizona.
- Bank statement loans for self-employed — 12 or 24 months of statements vs tax returns. See Self-Employed Loans Arizona.
- Bridge loans for move-up buyers — buy your new AZ home before selling the current one. See Buy Before You Sell Arizona.
- VA Renovation — buy a fixer-upper using VA financing for purchase + renovation
- Construction loans — for ground-up new build
How to pick the right program for your scenario
The decision usually comes down to three questions:
- Are you a veteran? If yes, start with VA. It usually wins.
- Where are you buying + how much do you make? USDA-eligible area + income under AMI = consider USDA.
- What's your credit + savings? Strong credit + 20% down = conventional. Limited cash + average credit = FHA.
Why work with a multi-program lender
Some lenders only offer 1-2 programs. They'll fit you into what they have, even if a different program would be better for your scenario.
Cornerstone First Mortgage offers all 5 major programs plus niche specialty programs. Mike runs the math on multiple scenarios so you see the actual cost difference for your specific situation.
Contact Mike or call (480) 296-6513.