Arizona home prices now sit close to the national median, but the numbers change a lot between Phoenix, Tucson and the rest of the state. This guide covers the loans most first time buyers use in 2026, the down payment help that is open right now, the FHA and conventional limits by county, and the Arizona costs that surprise new owners at closing.
Quick answer
First time buyers in Arizona can put down as little as 3.5% with an FHA loan or 3% with a conventional loan. The 2026 FHA limit for a one unit home is $557,750 in Maricopa and Pinal counties and $541,287 in Pima County, and the conventional limit is $832,750 in every county. HOME Plus offers up to 4% of the loan statewide as a second loan that is forgiven after five years, and you do not have to be a first time buyer to use it. Buyers in Maricopa County can also look at Home in Five Advantage, and buyers in Pima County at the Pima Tucson Homebuyer’s Solution. Most programs require a homebuyer education course, so pick yours before you make an offer.
What does it take to buy a first home in Arizona in 2026?
Prices have been flat to slightly higher this year. The median sale price across the Phoenix metro was $455,000 in August 2026, up 0.4% from a year earlier, according to Phoenix REALTORS. In the Tucson area, the MLS of Southern Arizona reported a median of $360,000, up 2.9%. Buyers also have more choice than a few years ago, with roughly four months of supply in both markets.
The down payment is often smaller than people expect. Here is the minimum on a $400,000 home, a price that sits between the Tucson and Phoenix medians:
| Loan | Minimum down | On a $400,000 home |
|---|---|---|
| FHA | 3.5% | $14,000 |
| Conventional for first time buyers, or HomeReady and Home Possible | 3% | $12,000 |
| Conventional, standard | 5% | $20,000 |
| Conventional without mortgage insurance | 20% | $80,000 |
The monthly payment is where most budgets are really tested. On top of principal and interest you will pay property tax, homeowners insurance, mortgage insurance and, in many Arizona neighborhoods, HOA dues. FHA also adds an upfront premium of 1.75% of the loan, which is usually rolled into the balance. Ask your lender for the full monthly payment on the homes you are considering, not just the loan amount you qualify for.
Should a first time buyer choose FHA or a conventional loan?
Both work well with a small down payment. The better choice usually comes down to your credit score, your monthly debts and how long you expect to keep the loan.
- FHA accepts a 580 score with 3.5% down, or 500 to 579 with 10% down. Its mortgage insurance price does not rise as your score falls, which helps while your credit is still building. The trade off is that the annual premium lasts for the life of the loan when you put down less than 10%.
- Conventional allows 3% down on a one unit home when at least one borrower is a first time buyer, or through HomeReady and Home Possible when your income is at or below 80% of the area median. Private mortgage insurance gets cheaper as your score rises, and you can ask to remove it once your balance reaches 80% of the home’s original value.
Our conventional loan guide compares the two side by side. If you work for yourself, read how lenders count self employed income before you apply, and see Bianca’s overview of FHA home loans.
What down payment help can Arizona buyers use right now?
These programs were open or taking reservations in early October 2026. Each has its own income limits, lender list and rules, and most money is first come, first served.
| Program | Help available | Main rules | Status |
|---|---|---|---|
| HOME Plus (statewide) | Up to 4% of the first loan as a second loan with no interest and no payments, forgiven after five years | Income up to $155,386, 620 credit score, homebuyer education, 30 year fixed FHA, VA, USDA or HFA conventional loan. First time buyer not required. | Open all year |
| Home in Five Advantage (Maricopa County, including Phoenix) | 3% to 6% on FHA and VA loans, forgiven after three years, or 3% to 5% on HFA conventional loans, deferred for 30 years. Available sizes depend on market conditions. | Income up to $157,360, 640 credit score, 8 hour homebuyer class. First time buyer not required. | Open; the 7 year option is fully used |
| City of Phoenix Open Doors | Up to 10% of the price as a 0% deferred loan, forgiven after an affordability period of up to 15 years | Household income up to 80% of the area median ($89,900 for four), price up to $470,250, first time buyer, home inside Phoenix city limits, $1,000 of your own money | Reservations are limited |
| Pima Tucson Homebuyer’s Solution (Pima County) | 3% or 4% as a forgivable second with no payments, or 4% or 5% plus a rate buydown | Income up to $155,386, 640 credit score, homebuyer education. First time buyer not required. | Ongoing |
| City of Tucson and Pima County HOME program | The lesser of $50,000 or 20% of the price, deferred. The 2% interest is forgiven at the end of the affordability period, and the principal is repaid when you sell. | Household income up to 80% of the area median ($79,850 for four), price up to $304,000 for an existing home or $345,000 for new construction, counseling before you sign a contract | Open through approved housing agencies |
| Arizona Is Home (13 counties outside Maricopa and Pima, not Chino Valley) | 4% as a deferred second repaid when you sell or refinance, plus a below market rate | First time buyer, income up to 100% of the county median, price up to $481,176 | The program expected 2026 funds to last only through September, so confirm before you count on it |
| FHLBank San Francisco grant | Up to $40,000 when you put in at least $10,000 | Income between 80.01% and 140% of the area median, first time buyer, counseling, participating bank or credit union | First come, first served while the 2026 pool lasts. Escrow must close by November 1, 2026. |
Each program works only through approved or participating lenders, so confirm that your lender offers it before you count on the money. A few more points are worth knowing:
- HOME Plus is forgiven only at the five year mark. If you sell or refinance before then, you repay it in full.
- Some programs stack and some do not. Phoenix’s Open Doors can be layered with other help, while the county and statewide programs each set their own rules.
- Few suburbs run their own program. Buyers in Glendale, Peoria, Surprise, Mesa, Chandler, Gilbert and Tempe usually start with HOME Plus or Home in Five Advantage, and can ask their city housing office whether any local funds are open.
- Flagstaff is different. Its Community Homebuyer Assistance Program can add up to $50,000 for eligible buyers inside city limits.
Tip: Choose your assistance program before you shop. Income limits, price caps, city boundaries and the type of first mortgage a program allows all decide which homes you can make offers on.
What are the 2026 loan limits in Arizona?
Every Arizona county uses the national baseline for conventional loans, so a loan above $832,750 on a one unit home is a jumbo loan. FHA limits vary by county.
| County | FHA limit, 1 unit | Conventional limit, 1 unit |
|---|---|---|
| Maricopa and Pinal | $557,750 | $832,750 |
| Pima, Yavapai, Mohave, Yuma and all other counties | $541,287 | $832,750 |
| Coconino (Flagstaff) | $609,500 | $832,750 |
The FHA limit applies to the base loan amount. With 3.5% down, the Maricopa County limit covers a purchase price up to about $578,000, well above the Phoenix median. Two to four unit homes have higher limits; in Maricopa County the FHA limit for a duplex is $714,000.
What Arizona costs should first time buyers plan for?
- No transfer tax. Arizona has no real estate transfer tax, and its constitution bars new ones, so you pay recording fees instead. Escrow fees are usually split between buyer and seller, the seller usually pays for the owner’s title policy and the buyer pays for the lender’s policy.
- Property tax in two halves. Bills are due October 1 and March 1 and become late after November 1 and May 1. Taxes are prorated at closing, and most lenders collect them in your monthly payment through an escrow account.
- The owner occupied tax break. A home you live in is taxed as a primary residence and gets a state homeowner rebate of up to $600 a year. Mark the home as owner occupied on the Affidavit of Property Value at closing, because rentals do not get the rebate.
- HOA dues and transfer fees. Many Phoenix and Tucson neighborhoods have an HOA. Add the dues to your monthly budget, and expect HOA transfer fees at closing, which are charged by the association rather than the state.
- Spouses and community property. Arizona is a community property state, so a spouse who is not on the loan usually signs the deed of trust, or a disclaimer deed if the home will be your separate property. On an FHA loan, that spouse’s monthly debts also count in your ratios, although their credit history alone is not a reason to deny the loan.
- Insurance. Quotes vary by area and by the age of the roof and cooling system, so get quotes before your inspection period ends.
Not sure which program fits you?
Bianca can check FHA, conventional and down payment help against your income, savings and the area you want to buy in.
What are the steps from preapproval to keys?
- Check your credit and savings. Know your middle score and how much you can put in, including any gift from family.
- Get preapproved for both loan types. Compare FHA and conventional on the same price so you see the payment and cash to close for each, then ask for official Loan Estimates once you have a property.
- Choose your assistance and take the class. Confirm the income limit, price cap and area, then finish the homebuyer course before you are under contract.
- Shop within the full payment. Include property tax, insurance, mortgage insurance and HOA dues, not just principal and interest.
- Write an offer that fits your program. Watch the price cap, the home type and any rules on the first mortgage.
- Lock your rate and close. Keep your job, credit and bank accounts steady until you have the keys.
- Confirm your tax status. Check that the county shows the home as your primary residence so you keep the homeowner rebate.
Frequently asked questions
How much do I need to buy my first home in Arizona?
The minimum down payment is 3.5% with FHA or 3% with a conventional loan for first time buyers, which is $14,000 or $12,000 on a $400,000 home. You also need money for closing costs and reserves, and programs such as HOME Plus can cover part of the total.
Is HOME Plus only for first time buyers?
No. HOME Plus is open to repeat buyers too, as long as you buy a home you will live in, stay within the $155,386 income limit, have a 620 credit score and complete a homebuyer course. It is forgiven after five years.
What is the FHA loan limit in Maricopa County in 2026?
The 2026 FHA limit is $557,750 for a one unit home in Maricopa and Pinal counties and $541,287 in Pima County. The conventional limit is $832,750 in every Arizona county.
Is there down payment assistance in Tucson?
Yes. The Pima Tucson Homebuyer’s Solution offers 3% to 5% across Pima County, and the City of Tucson and Pima County HOME program offers up to $50,000 for buyers earning up to 80% of the area median. HOME Plus is also available statewide.
What credit score do I need as a first time buyer in Arizona?
FHA accepts 580 with 3.5% down. HOME Plus requires 620, while Home in Five Advantage and the Pima Tucson Homebuyer’s Solution require 640. Fannie Mae no longer sets its own minimum score for loans run through its automated system, but lenders still set theirs.
Bianca Lopez
Loan Originator with The Mortgage Homemaker, powered by Barrett Financial Group. Helping Arizona buyers and homeowners in Phoenix, Tucson and across the state buy, refinance and invest with confidence.
NMLS #1605655 | Company NMLS #181106
Based in Arizona, licensed in AL, AZ, GA, MA, MO, OR, PA, TN, TX and VA
(520) 907 2520
BiancaJ@barrettfinancial.com
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Buying your first home?
Find the right program before you shop.
Bianca Lopez can check which FHA, conventional and down payment help options fit your situation, show your payment and cash to close side by side, and get you preapproved.
Sources and official resources
- Phoenix REALTORS: Monthly Indicators, August 2026
- MLS of Southern Arizona: Tucson area market report, August 2026
- HUD: FHA mortgage limits lookup
- FHFA: Conforming loan limit values for 2026
- HUD: Single Family Housing Policy Handbook 4000.1
- Arizona Industrial Development Authority: HOME Plus down payment assistance
- Arizona Industrial Development Authority: HOME Plus 2026 income limits
- Home in Five Advantage: Down payment assistance guidelines, June 2026
- City of Phoenix: Homeownership opportunities and Open Doors
- Pima County IDA: Pima Tucson Homebuyer's Solution
- Housing Innovation Hub: Pima Tucson Homebuyer's Solution Advantage
- City of Tucson: Down Payment Assistance Program
- Arizona Industrial Development Authority: Arizona Is Home
- Arizona Industrial Development Authority: Arizona Is Home funding update, July 2026
- FHLBank San Francisco: Middle Income Downpayment Assistance
- City of Flagstaff: Community Homebuyer Assistance Program
- Arizona Constitution, Article 9, Section 24: Real property transfer taxes
- Maricopa County Assessor: Rental registration questions
Information checked October 5, 2026. Rates, loan limits, program rules and assistance funding change, so confirm current terms before you rely on them.
This article is for general education only and is not a loan offer, commitment to lend, or tax or legal advice. Rates, terms, fees and programs vary by lender and are subject to change without notice. All loans are subject to credit approval, underwriting guidelines and property eligibility. Examples are illustrations, not quotes. Down payment assistance is subject to program funding, eligibility and participating lender rules. The Mortgage Homemaker is powered by Barrett Financial Group, L.L.C., NMLS #181106, 2701 East Insight Way, Suite 150, Chandler, AZ 85286, Arizona license #0904774. Bianca Lopez, Loan Originator, NMLS #1605655 (NMLS Consumer Access). The Mortgage Homemaker and Barrett Financial Group are not affiliated with any government agency. Equal Housing Opportunity.
