VA loans in Arizona — the best deal in the mortgage market, if you've earned it.
If you served, you'd be leaving real money on the table to use anything else. 0% down, no monthly mortgage insurance, lower rates than conventional, and the loan can be assumed by another VA-eligible buyer when you sell. The catch is one upfront funding fee, and disabled vets don't even pay that.
VA at a glance
| Down payment | 0% (most common), voluntary down payments allowed |
| Minimum FICO | VA: no minimum · most lenders: 580–620 · Cornerstone: 580 |
| Maximum DTI | Typically 41% standard, up to 50%+ with strong residual income |
| Monthly mortgage insurance | None |
| Funding fee | 2.15% first use / 3.3% subsequent, can be financed; exempt for disabled vets |
| 2026 loan limit | No limit for full-entitlement borrowers |
| Property types | 1–4 unit primary residence; VA-approved condos |
| Seller concessions | Up to 4% of purchase price (plus normal closing costs) |
| Best for | Anyone with VA eligibility, period |
Who qualifies for a VA loan
VA eligibility comes from your service. The general rules:
- Active duty: Currently serving, at least 90 continuous days during wartime or 181 days peacetime
- Veterans: Separated from service with the same minimums (90 days wartime / 181 days peacetime), discharged under conditions other than dishonorable
- National Guard or Reserve: 6 years of service, OR 90 days of active-duty service under federal orders
- Surviving spouses: Of service members who died in service or from a service-connected disability, and have not remarried (or remarried after age 57)
You'll need a Certificate of Eligibility (COE) to use the loan. We can pull it for you online in most cases, takes minutes. If yours is more complex (Guard/Reserve, post-Vietnam discharge categories), it can take 5–10 business days through the VA.
Why VA usually beats every other loan
- 0% down. No other major loan program does this without strict income or geographic limits (USDA does, but you have to be in a rural area; VA works anywhere in Arizona).
- No monthly mortgage insurance. Saves $150–$300/month on a typical Arizona purchase, every month, for the life of the loan.
- Better interest rates. VA loans typically price 0.25–0.5% lower than conventional, all else equal. The VA guarantee is what funds that pricing benefit.
- Higher DTI flexibility. VA's "residual income" test is generous if your fixed monthly expenses leave enough leftover for a household your size.
- The loan is assumable. When you sell, another VA-eligible buyer can take over your existing loan at your existing rate. In a high-rate environment, this is a meaningful resale advantage that no other loan offers.
- Used multiple times. VA loans aren't a "use it once" benefit. You can use it again on your next home, and again after that.
The VA funding fee, plainly
The funding fee is a one-time fee paid at closing (or financed into the loan). It replaces the monthly mortgage insurance you'd pay on FHA or conventional. The fee depends on three things: down payment, first vs. subsequent use, and exemption status.
| Down payment | First use | Subsequent use |
|---|---|---|
| 0% | 2.15% | 3.3% |
| 5%–9.99% | 1.5% | 1.5% |
| 10%+ | 1.25% | 1.25% |
Funding fee exemptions. No fee is paid by:
- Veterans receiving VA disability compensation (any rating, even 0%)
- Veterans entitled to disability compensation but receiving retirement pay instead
- Purple Heart recipients (active duty)
- Surviving spouses of service members who died in service or from service-connected causes
If you're disabled, your VA loan is essentially the lowest-cost mortgage available anywhere.
Real numbers — Tucson example for a first-use vet
| Item | Amount |
|---|---|
| Purchase price | $380,000 |
| Down payment | $0 |
| Base loan amount | $380,000 |
| Funding fee financed (2.15%) | $8,170 |
| Total loan amount | $388,170 |
| Monthly P&I (illustrative ~file-specific pricing) | ~$2,329 |
| Monthly mortgage insurance | $0 |
| Estimated taxes + insurance + HOA | ~$390 |
| Total monthly payment | ~$2,719 |
| Estimated closing costs (2–4%) | ~$7,600–$15,200 |
| Cash to close (with seller concessions covering closing costs) | ~$0–$2,000 |
Disabled vet on the same scenario: subtract $8,170 from the loan amount (no funding fee). Compared to FHA at the same purchase price, this VA scenario saves roughly $200/month in mortgage insurance alone, every month, forever.
Arizona's military communities — common VA scenarios
Arizona has six active military installations and a large veteran population. Common VA buyer profiles we see:
- Davis-Monthan AFB (Tucson): Active duty Air Force buying in southeast Tucson, Vail, Sahuarita, Marana
- Fort Huachuca (Sierra Vista, Cochise County): Active duty Army Intelligence; many buyers in Sierra Vista, Hereford, Whetstone
- Luke AFB (Glendale): Air Force pilot training; buyers in Glendale, Surprise, Litchfield Park, Goodyear
- Yuma Proving Ground / MCAS Yuma: Army & Marine; Yuma and Foothills buyers
- Phoenix retirees: Large veteran retiree population using VA again on their second or third home
If you're moving on PCS orders, VA loans can be processed quickly, we've closed VA in 21 days for active-duty buyers under tight timeline. Bring orders, LES, and DD-214 (if separated) and we can usually issue same-day pre-approval.
VA appraisal and the "Tidewater" rule
VA appraisals do double duty, they confirm value and check the home meets the VA's Minimum Property Requirements (MPRs). VA appraisers are assigned by the VA, not chosen by the lender.
If a VA appraiser believes the home will appraise for less than the contract price, they invoke the Tidewater rule: they notify your real estate agent before finalizing the appraisal, giving them a chance to provide additional comps. This often saves deals.
Common AZ VA appraisal flags:
- Termite report required (Arizona is a termite state)
- Roof condition with at least 2 years of remaining life
- Active pool with functioning safety equipment
- Working HVAC (essential in AZ summer)
- No exposed wiring, no major plumbing issues, no significant pest damage
Common VA loan questions
Who qualifies for a VA loan in Arizona?
Active duty (90 days wartime / 181 days peacetime), veterans with the same minimums, National Guard/Reserve with 6 years of service, and qualifying surviving spouses. We can verify your eligibility from your DD-214 in minutes.
Is there a credit score minimum for VA loans?
VA itself doesn't set one. Most lenders set their own at 580–620. Cornerstone goes to 580 on most VA scenarios.
Do VA loans require mortgage insurance?
No. There is no monthly mortgage insurance on a VA loan. Instead, there's a one-time funding fee at closing, which can be financed.
What's the VA funding fee in 2026?
2.15% for first use with no down payment, 1.5% with 5% down, 1.25% with 10% down. Subsequent use without a down payment is 3.3%. Disabled vets, Purple Heart recipients, and qualifying surviving spouses are exempt.
Can I use my VA loan more than once?
Yes. VA loans aren't one-time use. You can use the benefit again after paying off a prior VA loan, or with restored entitlement after selling. Some buyers use it 3–5+ times across a career.
Are VA loans assumable?
Yes, and this is a real benefit. Another VA-eligible buyer can assume your existing VA loan at your existing rate when you sell. In a high-rate market, that's an enormous selling point.
How long does a VA loan take to close in Arizona?
30–35 days is typical. We've done 21–25 days on tight PCS timelines. The slowest part is usually the VA appraisal, appraisers are limited in some AZ rural areas and can take an extra week.
Can I use a VA loan on a manufactured home?
Yes, on permanently affixed manufactured homes meeting VA standards. Common scenario in rural AZ counties.
What if I don't have my DD-214?
We can help you request it from the National Archives or the VA. Active duty: a current Statement of Service letter from your command works. Don't let a missing document block you, we deal with this regularly.
Service member or veteran? Let's see what you qualify for.
20-minute call. Bring your DD-214 (or a screenshot of it). We'll have a pre-approval letter same-day in most cases.