Mortgage in Arizona

Even though much of Arizona is desert, it's arguably one of the best places to live in the US and a hotspot for retirees. The state is also home to one of the seven wonders of the world, the Grand Canyon. Part of Arizona's allure is its warm, dry climate and affordable housing. In Phoenix, for example, the median home price is around $275,000, and the median household income is $69,000. That makes Phoenix one of the more affordable metro areas, and you can see how much you'd pay for a home here with our Arizona mortgage calculator!

Fortunately, moving to the Grand Canyon state is pretty simple. Here's what you need to know about mortgages in the desert!

Mortgage Options in Arizona

If you're looking to buy a home or condo in Arizona, there are three primary mortgage types to consider.

• Arizona conventional mortgage: If you have a credit score of at least 620, this mortgage is an option for you. You'll also need a debt-to-income ratio below 43%, and if you put less than 20% down, you'll pay PMI. Conventional mortgages are the only loan products that work for vacation properties. So, if you plan on being a snowbird in Arizona, look at rates for these loans (not FHA or VA).
• Arizona FHA mortgage: FHA loans are perfect for first-time homebuyers in the Phoenix area because you can buy a home with as little as 3.5% down. Given that the average home is under $300k, you could become a homeowner with as little as $10k saved. You will need a credit score higher than 580, though. If your score is between 500-579, you'll need 10% down. The only downside is that these loans require PMI for the mortgage duration (you can eliminate it by refinancing).
• Arizona VA mortgage: If you have a credit score of 660 or above and you're an eligible veteran, this loan is probably the best option. You won't need to pay PMI, and you can own a home with as little as 0% down. With Arizona's closing cost assistance programs, this means you can be a homeowner with minimal money.

After you determine which mortgage type you want, you can compare rates and see how much you'll pay with our Arizona mortgage calculator.

First-Time Home Buyer Programs in Arizona

If you're a first-time homebuyer in Arizona, the state offers generous down payment assistance through the HOME+PLUS program.

With this program, you can receive a 30-year fixed-rate, FHA, VA, USDA, or conventional mortgage backed by Freddie Mac or Fannie Mae. You'll also get down payment/closing cost assistance ranging from 3% to 5% of the loan value if you're eligible.

Eligibility Criteria: To qualify for this assistance, you need a credit score of at least 640, and your household income cannot exceed $109,965!

Arizona Mortgage Calculator: See How Much Home You Can Afford

With these mortgage types and down payment assistance in mind, try our Arizona mortgage calculator to see how much home you can afford and what your monthly payment would be!