Arizona Mortgage

An Arizona mortgage loan can help you afford your dream property in the Grand Canyon State! Your home-buying journey begins by securing a purchase loan from a reputable lender, and our team at Arnaiz Mortgage will help you through the entire process.

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Our Arizona Mortgage Options

Our loan officers will assist you in finding loan programs that match your needs, which include conventional mortgages, FHA loans, VA loans, and refinancing loans.

Arizona Mortgage Process

We assist homebuyers throughout the whole process of seeking a mortgage, ensuring you know what to expect at every step of your loan.

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Discover Your Ideal Home: Navigating Arizona Mortgage Options

Home loans are an excellent way to improve home affordability. They allow you to repay your loan amount through mortgage payments rather than covering the entire principal amount upfront. Better yet, you can refinance loans down the line to gain access to more favorable rates than when you first purchased your property.

Your Guide to Arizona Mortgage Requirements

Mortgage lenders will have their own requirements, which are based on what type of loan you’re seeking, your income, and the overall size of your loan. For example, government-backed loans like the Federal Housing Administration, Department of Veterans Affairs, and US Department of Agriculture loans will have lower qualification requirements than conventional products.

Credit Score: For conventional loan products, mortgage lenders will want a credit score of 620 or higher. A government-backed loan may accept scores as low as 500.

Down Payment: If you provide a down payment of 20% or more, you will not have to pay private mortgage insurance for conventional loans. You may be able to find loan options with down payments as low as 3%.

Federal Housing Administration loans require a 10% down payment if you have a credit score below 580; those above this threshold only need a 3.5% down payment. You will have an annual premium for mortgage insurance regardless of how much you put down.

Debt-to-Income Ratio: Your debt-to-income should be no higher than 43% if you want a conventional mortgage loan. With FHA loans, you may be able to find mortgage lenders who will accept up to 57%.

To ensure you can get the most competitive rate possible from a lender, ensure you have good credit, provide at least 10% of the purchase price upfront, and pay down your other debts to lower your DTI.

Arizona Assistance Programs and Grants

Arizona home values are higher than the national average, making it difficult to afford the down payment required. Thankfully, there are numerous down payment assistance programs that will help you break into the Arizona housing market.

The Arizona Industrial Development Authority offers the Home PLUS program, available in every Arizona county. This program combines a 30-year fixed-rate mortgage with 4% of the total home price in money for down payments and closing costs. At least one borrower must complete a homebuyer education program. If you select a Fannie Mae or Freddie Mac loan, you can receive reduced mortgage insurance premiums.

Low-income borrowers can utilize the Arizona Is Home Mortgage Assistance Program through the Arizona Department of Housing. This program offers many of the same benefits but is for those who make less than 80% of the area median income. This program is available in all Arizona counties except Maricopa County, which includes the Phoenix metropolitan area, and Pima County, which includes Tuscon.

Why Choose Arnaiz Mortgage for Your Arizona Mortgage Needs?

At Arnaiz Mortgage, we understand that the best mortgage is the one that matches your financial goals. We’ll take the time to understand your needs and find a bank or mortgage company that can offer advantageous rates, and we’ll explain the entire process to you, including the cost of a mortgage and how to get a good interest rate.

Furthermore, our team is here for you throughout the life of your home loan. When you’re ready to refinance, we’ll assist you in finding mortgage lenders that can provide the ideal option for your goals, whether that is getting a cash-out refinance or reducing your monthly mortgage payment with a better rate.

Arnaiz Mortgage is also here for real estate investors seeking to make passive income in the Grand Canyon State. We’ll walk you through these unique mortgage products. Simply fill out our contact form to start your new home ownership journey.

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Frequently asked questions about Arizona Mortgage

  • Is it hard to get a mortgage in Arizona?

    The difficulty of getting a mortgage depends on what you qualify for, your borrowing profile, and the purchase price. Homebuyers seeking a smaller loan, such as for a tiny house, may find it difficult to find mortgage lenders to assist, especially as homeowners’ insurance may not cover these properties. However, those with a proven ability to cover their mortgage payments and with a decent credit score may not find it hard to get a mortgage loan.

  • What is the average mortgage in Arizona?

    The Grand Canyon State is a beautiful but expensive place to own a home. The average mortgage payment in Arizona is about $2,618 a month, which is higher than the national average of $2,200 per month.

  • How much do you need to put down on a house in Arizona?

    In general, Arizonans put about 5% down on a property. As the state’s average house price is $352,536, this means you should expect to save up at least $17,626 for your own payment.

  • What is the minimum credit score to buy a house in AZ?

    The minimum credit score accepted by conventional mortgage lenders is 620, though you will have access to a better mortgage rate and more lending options with a better score. For a Federal Housing Administration loan, you can have a score as low as 500, but you’ll need to provide a 10% down payment.

  • How do I qualify for a mortgage in Arizona?

    Homebuyers need to prove that they are trustworthy borrowers in order to qualify for a mortgage; this includes a mix of different factors, including FICO score, credit history, employment history, and debt-to-income ratio. 

    Typically, this means that you have to have a minimum 620 score, no recent bankruptcies or foreclosures, no home liens for property taxes, stable employment, and a 43% DTI or less. 

    The documentation you’ll need to provide includes bank statements, tax returns, pay stubs, a list of all your debts, and a credit report.

  • How do I choose a mortgage lender in Arizona?

    Our team will help match you to the right mortgage lender for your needs. We look at the company’s credibility and credentials, loan rates, origination fees, and credit requirements to find an option that offers a good rate. 

    When looking for lenders yourself, check their reputation among consumers and businesses to ensure they provide good customer service and don’t overcharge for their services.

  • What are the different types of mortgages available in Arizona?

    You have various loan options, including conforming and non-conforming conventional loans and government-backed products like the FHA, VA, and USDA programs.

    With conventional loans, you can choose between 30-year fixed-rate or adjustable-rate loans, which have a low introductory rate. For refinancing, you may select a rate-and-term refinance, which adjusts your rate and loan length, or a cash-out refinance, which provides you with a lump sum money payment for home equity.

  • What are the closing costs for buying a home in Arizona?

    A lender charges fees to cover the cost of underwriting the loan. These closing costs include things like searching for the title, verifying property taxes, ordering an appraisal, and paying for underwriters to double-check everything.

    In general, you can expect to pay between 2 to 5% of the loan amount in closing costs, which is required at the time of close.

  • How long does the mortgage approval process take in Arizona?

    When you work with us, you can enjoy a fast approval process. The average approval process can be completed in as little as 24 hours. Once your application is completed, receiving funds takes approximately 30 days.