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First-time homebuyersYou do not need 20% down to buy your first home. Many first-time buyers use 0–3.5% down with conventional, FHA, VA, or USDA financing—and may stack local down payment assistance. Evan Cardenas walks you through affordability, programs, and the documents you need before you shop.
NMLS #1463065 · Licensed in AZ, CA, CO
Estimate payment with taxes and insurance—not just principal and interest.
A real credit check and income review beats a soft online teaser.
See local DPA and first-time programs that can reduce cash to close.
Conventional, FHA, VA, and USDA each fit different credit and down-payment pictures.
Make offers knowing your max price, cash to close, and timeline.
As little as 3% down on many first-time programs. PMI can be canceled later.
Conventional →3.5% down and flexible credit—popular when savings or scores are still building.
FHA →Often $0 down for eligible veterans and service members—no monthly PMI.
VA →$0 down in eligible areas when household income fits USDA limits.
USDA →Mesa and the East Valley remain among the Phoenix metro's more attainable pockets for buyers who want space and newer inventory, while Scottsdale and parts of north Phoenix often price higher for the same bedroom count. Inventory and days on market shift with rates, so buyers who are pre-approved and clear on payment comfort usually negotiate better than shoppers still guessing at affordability. Condos and townhomes can open doors at lower price points; always confirm HOA dues and any special assessments before you lock a budget.
Statewide down payment and closing cost help of up to 4% as a no-interest, no-payment second mortgage that is forgiven after 5 years. You don't have to be a first-time buyer; borrower income must be $155,386 or less (as of April 6, 2026), and one borrower completes a homebuyer education course.
Program details (opens in new tab) →Down payment and closing cost assistance of 3% to 6% of the loan for homes anywhere in Maricopa County, paired with an FHA, VA, or qualifying Fannie Mae or Freddie Mac loan. It requires a 640 minimum credit score, income limits, and an 8-hour homebuyer education course; some assistance options have run out of 2026 funds, so ask which are open.
Program details (opens in new tab) →Program terms and funding change. Updated 2026-10-15.
| Down payment | Often 0–3.5% depending on program (VA/USDA 0%, conventional ~3%, FHA 3.5%). |
|---|---|
| Closing costs | Often about 2–5% of the loan amount before credits or assistance. |
| Local costs | Arizona has no real estate transfer tax. Recording a deed costs a flat $30 per document, which already includes the state's $2 transfer fee, and buyer and seller sign a notarized Affidavit of Property Value. Closings are handled by title and escrow companies. By custom the seller pays the owner's title policy, the buyer pays the lender's title policy and loan costs, and escrow and recording fees are split, though all of it is negotiable in the contract. |
| Loan limits | 2026 limits for Maricopa County: FHA $557,750 for a one-unit home ($714,000 two-unit, $863,100 three-unit, $1,072,600 four-unit), and the conforming limit is $832,750 for a one-unit home, the same in every Arizona county. Loans above the conforming limit are jumbo loans. Check current limits at https://entp.hud.gov/idapp/html/hicostlook.cfm. |
3% down = $9,000. 3.5% down = $10,500. Add closing costs (or offset with seller credits / DPA). Not a quote.
Lenders look at debt-to-income, credit, and reserves. As a rough consumer guide, total housing often lands near 28–36% of gross income, though automated underwriting may allow more. A $70,000 salary with light debts might support roughly a $2,000–$2,400 total payment before you know taxes and insurance. Pre-approval beats any rule of thumb.
About $9,000 at 3% conventional, $10,500 at 3.5% FHA, or $0 with qualifying VA/USDA. Closing costs are extra unless covered by credits or assistance.
Often yes for lower-priced homes at 3–3.5% down (roughly the mid-$280ks to low-$330ks before closing costs). Seller credits and Arizona assistance can stretch it further.
Access to 3% down conventional products, education courses that unlock some DPA, and many state/local assistance programs that prefer or require first-time status (definitions vary—sometimes “no ownership in the last 3 years”).
Yes. FHA is a regular mortgage you repay monthly. FHA insures the lender. Some paired assistance is a grant or forgivable second loan that may not need repayment.
Ask about estimated cash to close and PITI payment, which programs fit your credit and down payment, local DPA, which fees are lender vs. third-party, underwriting timeline, rate-lock rules, and what could delay closing.
A budgeting tip: keep ~3 months of expenses after closing, aim for housing near ~30% of take-home pay, and avoid buying if you may move within 3 years. It is not a lender underwriting rule.
Yes. Arizona Home Plus offers up to 4% toward your down payment and closing costs anywhere in the state, as a second mortgage with no interest or payments that is forgiven after 5 years. You don't need to be a first-time buyer, but your income must be at or under $155,386 and one borrower takes a homebuyer education class. In Maricopa County, Home in Five Advantage is another option.
Educational answers only—not a loan offer or commitment to lend.
Pre-approval takes about 15 minutes. Or book a call with Evan at (480) 334-7827.