Find the right loan type before you start shopping.
Six quick questions. Honest answers. No credit pull. Use this as a starting framework — then we'll confirm the right path in a 20-minute call.
Question 1 — Are you a current or former service member?
If yes, the VA loan is almost always the right starting point. Zero down, no monthly mortgage insurance, and the lowest total cost of any program when you qualify. Includes active duty, Veterans, National Guard, Reserves with qualifying service, and many surviving spouses.
If VA-eligible → Start with the VA loan guide. You can stop here on most files.
Not VA-eligible → continue to question 2.
Question 2 — Where in Arizona are you buying?
Location matters because USDA financing requires the home to be in a USDA-eligible area, and several down payment assistance programs are location-specific.
| Location pattern | What to look at next |
|---|---|
| Phoenix metro (Maricopa County) | FHA, Conventional, plus Home In 5 down payment assistance |
| Tucson / Pima County | FHA, Conventional, plus Pima Tucson Homebuyer's Solution |
| USDA-eligible areas / smaller Arizona communities (Casa Grande outskirts, Yuma outskirts, Sierra Vista, Prescott Valley outskirts, many others) | USDA loan — often a strong fit |
| Flagstaff | FHA, Conventional, plus Flagstaff CHAP down payment assistance |
| Statewide Arizona (anywhere) | Home Plus — works across most counties |
| Not sure yet | FHA + Conventional are safe defaults until you narrow down |
Question 3 — What's your credit score range?
Don't worry about a specific number — a rough range is enough to point in the right direction.
| Credit range | What's realistic |
|---|---|
| Under 580 | FHA is technically possible at 500–579 with 10% down at some lenders. Recommended path: 60–90 day credit-improvement plan, then revisit. We can usually identify a clear lift opportunity. |
| 580–619 | FHA at 3.5% down with most lenders. Conventional and most down payment assistance programs typically need 620+, so FHA is usually the path. |
| 620–679 | FHA, Conventional, USDA, and most down payment assistance all open up. Compare programs by long-term cost. |
| 680–739 | All loan types available. Conventional usually wins on long-term cost because mortgage insurance drops off. |
| 740+ | Best pricing on Conventional. FHA still possible but rarely the cheapest long-term option. |
See the full credit-score guide for the math on each program.
Question 4 — How much cash do you have available?
This is total available cash before any down payment assistance is layered in.
| Cash on hand | What it can support |
|---|---|
| $0 – $2,000 | VA (if eligible), USDA (eligible area), or FHA paired with full down payment assistance. Out-of-pocket can be near zero with the right stack. |
| $2,000 – $5,000 | FHA with down payment assistance, or VA / USDA on the right property. Conventional only if you also receive seller credits. |
| $5,000 – $15,000 | FHA at 3.5% down on most starter-price homes. Conventional 3% on some price points. Down payment assistance still useful to cover closing costs. |
| $15,000+ | All paths open. Compare FHA vs Conventional on long-term cost, not just upfront. |
A reasonable target: keep 2–6 months of housing costs after closing. Don't drain savings to maximize down payment.
Question 5 — How is your income structured?
Different income types route through different documentation paths.
- W-2 employee, steady 2+ years — All loan types open. The most straightforward path.
- Self-employed or 1099 — Conventional, FHA, VA, and USDA are still possible with two years of tax returns. If returns show heavy write-offs, the self-employed loan options on our sister site may fit better than a traditional first-time buyer program.
- Mixed (part W-2, part 1099) — Works, with both years of documentation for each income source.
- New job (started within the last 12 months) — Often still works, especially in the same field. See buying after a job change for specifics.
- Variable income (commission, bonus, tips) — A 2-year average is used. Works on all programs but takes a careful documentation review.
Question 6 — Do you need down payment assistance?
Down payment assistance is a major lever in Arizona — but it's not always the cheapest long-term path. The right answer depends on how long you'll stay in the home.
| Your situation | Down payment assistance fit |
|---|---|
| Limited cash, plan to stay 5+ years | Down payment assistance often wins. Pair with FHA or Conventional. |
| Enough cash to cover 3–3.5% but no buffer | Use down payment assistance for closing costs, keep your savings as reserves. |
| Plan to refinance or move in under 3 years | Down payment assistance may not be worth it — some programs require repayment if you refinance or sell early. Compare carefully. |
| Strong credit, comfortable cash position | Skip down payment assistance. Standard FHA or Conventional is usually cheaper long-term. |
Full breakdown on the Down Payment Assistance Arizona sister site.
Putting it together — common Arizona scenarios
A quick read of common combinations and what usually fits.
- VA-eligible, anywhere in Arizona, any credit above 620 → VA loan. Stop. Best deal in mortgage if you qualify.
- FICO 580–680, Phoenix metro, limited cash → FHA + Home In 5 or Home Plus.
- FICO 680+, decent cash, buying in central Phoenix or Scottsdale → Conventional 3% down, usually cheaper than FHA long-term.
- Buying in a USDA-eligible area or smaller Arizona community → USDA if income-eligible. Often $0 down.
- Tucson buyer → FHA or Conventional + Pima Tucson Homebuyer's Solution.
- Flagstaff buyer → FHA or Conventional + Flagstaff CHAP.
- Under 580 credit, limited cash → 60–90 day credit-improvement plan, then revisit. Usually a clear lift opportunity exists.
Frequently asked questions
What credit score do I need to buy a house as a first-time buyer in Arizona?
FHA accepts a 580 credit score with 3.5% down, or 500–579 with 10% down. Conventional 97, Fannie HomeReady, and Freddie Home Possible need a 620 minimum and allow 3% down. For Arizona down payment assistance, Home Plus requires a 620 FICO and Home in Five requires 640. Below 580, plan a 60–90 day credit lift, then revisit.
Who counts as a first-time home buyer?
Under HUD's definition, you are a first-time buyer if you have not owned a principal residence in the prior three years. A spouse's ownership counts, so both of you must clear that window. Single-parent and displaced-homemaker exceptions apply even if you owned a home with a former spouse. Many Arizona assistance programs use this same three-year rule.
Should a first-time buyer choose FHA or Conventional?
FHA fits credit scores of 580–680 and lower cash, needing 3.5% down plus a 1.75% upfront mortgage insurance premium. Conventional usually wins above a 680 score because mortgage insurance drops off once you reach 20% equity. The 2026 FHA limit in Maricopa County is $557,750; the conforming limit is $832,750. We compare both on long-term cost, not just the down payment.
Can I stack down payment assistance programs in Arizona?
No. Down payment assistance programs do not stack with each other — you use one per purchase. They do layer on top of your first mortgage. Home Plus offers up to 5% statewide (4% plus 1% for Active Duty and Veterans), while Home In Five in Maricopa County reaches up to 6.5%. You pick the single program that fits your county and income.
What are the income limits for Arizona down payment assistance?
Home Plus caps borrower income at $155,386 ($146,503 with government loans like FHA, VA, or USDA) statewide. Home In Five, available only in Maricopa County, caps household income at $157,360 as of June 10, 2026. Home Plus requires a 620 FICO and Home in Five requires 640. City of Phoenix Open Doors offers up to 10% ($15,000 cap) when funded; reservation availability opens and closes in cycles (confirm current availability with the City of Phoenix before relying on it).
Can I buy a home in Arizona with no down payment?
Yes, two paths reach $0 down. VA loans require no down payment for eligible service members and Veterans with no monthly mortgage insurance. USDA loans offer $0 down in USDA-eligible areas only, since most of Maricopa County is excluded, and income limits apply. Otherwise, FHA paired with full down payment assistance can bring your out-of-pocket close to zero.
Prefer a quick call?
Twenty minutes on the phone. No pressure, no commitment, no hard sell. Just a realistic conversation about what may fit and what steps come next.