Mortgage in Arizona

Even though much of Arizona is a 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 seven wonders of the world, the Grand Canyon. Part of the allure of moving to Arizona is the warm, dry climate and affordable housing. For example, in Phoenix, 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!

Arizona Mortgage Calculator: What Do I Need To Know?

For residents looking to buy a home or condo in Arizona, there are three primary types of mortgages that you can have.

• Arizona conventional mortgage: If you have a credit score of at least 620, this mortgage is a possibility for you. You'll need a debt-to-income ratio below 43%, though. If you don't have at least 20% down, you'll need to pay PMI. Conventional mortgages are the only loan products that can work for vacation properties. So, if you're planning on being a snowbird to Arizona, you'll need to 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. The primary reason for this is that you can buy a home with as little as 3.5% down. Given that the average home is under $300k, that means you can be a homeowner with as little as $10k saved. You will need a credit score higher than 580, though. If you have a score between 500-579, you'll need 10% down. The only downside to these loans is that they require PMI for the mortgage duration (you can eliminate this, though, 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 Homebuyers in Arizona

If you're a first-time homebuyer in Arizona, you should know that there's quite generous down payment assistance offered by the state 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 the above mortgage types and down payment assistance in mind, check out our Arizona mortgage calculator to see how much home you can afford and what your monthly payment would be!