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.
Program figures verified July 2026 — details change; confirm your scenario with us.
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 | $541,287 floor to $609,500 (Coconino); Maricopa/Pinal $557,750 | $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 the 2026 AZ FHA limit ($557,750 in Maricopa/Pinal, $541,287 in most counties, $609,500 in Coconino) — FHA can't fund it
For first-time AZ buyers, see our First-Time Home Buyer Loans Arizona site for detailed FHA scenarios. Our guide to FHA loans in Arizona breaks down the 2026 county limits and full requirements.
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; strong program fits
- 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.
Common 2026 misconceptions
Stale figures follow Arizona buyers around for years. Three we correct most often:
Is the 2026 Phoenix-area FHA loan limit $546,250?
No. $546,250 was the 2025 FHA loan limit for Maricopa and Pinal Counties. HUD's CY2026 schedule, effective January 1, 2026, raised that figure to $557,750 for a one-unit home. The Arizona FHA range for 2026 runs from a $541,287 floor in most counties to $609,500 in Coconino County. Always check the effective date before relying on a limit you find online. See our full county FHA limits table.
Is there still a maximum loan amount for a VA loan in Arizona?
Not for most Veterans. The Blue Water Navy Vietnam Veterans Act of 2019 eliminated VA loan limits effective January 1, 2020 for any Veteran with full entitlement, meaning $0 down is available above the 2026 conforming figure of $832,750, not just below it. The conforming figure only still matters for Veterans with partial entitlement, such as an existing VA loan or a prior default.
Can I combine Home Plus and Home in Five to get more assistance?
No. Arizona's down payment assistance programs do not stack with each other, so you pick one. Home Plus (statewide, up to 5%) and Home in Five (Maricopa County only, up to 6.5%) are mutually exclusive. Your chosen assistance layers with your first mortgage (FHA, VA, USDA, or conventional), not with a second assistance program.