What Is the Minimum Down Payment in Arizona?
Last updated September 2026
The minimum down payment in Arizona depends on the loan, not the house. VA is 0% for eligible veterans, conventional starts at 3%, FHA at 3.5%, and jumbo near 10%. Forward Loans is a mortgage broker in Phoenix (NMLS #2006640) and we run every first-time buyer’s file against all of them.
This is the supporting guide on down payment minimums. The full process sits on the pillar: How to Buy Your First House in Arizona.
On this page
- What is the minimum down payment by loan type?
- What does that minimum look like in real dollars?
- What does the lender add back for a low down payment?
- Can down payment assistance cover it?
- Can my family gift me the down payment?
- How do you find your own minimum?
- Should you put down more than the minimum?
- What to ask a lender about this
- Frequently asked questions
What is the minimum down payment by loan type?
The loan sets the floor. Here is where each one starts for a first-time buyer in Arizona.
| Loan type | Minimum down | Who it fits |
|---|---|---|
| VA | 0% | Veterans and eligible service members |
| USDA | 0% | Rural Arizona only, with income limits |
| Conventional 97 | 3% | First-time buyers with credit around 620 and up |
| FHA | 3.5% | Buyers with lower credit or higher debt |
| Conventional | 5% | Standard conventional, not first-time |
| Jumbo | 10% to 20% | Loans above the conforming limit |
Two of these get you in with nothing down. VA is the strongest deal in the market for a veteran: no down payment, no monthly mortgage insurance, and no county loan limit. USDA also allows nothing down, but only on homes inside the areas USDA maps as rural, which is mostly outside the Phoenix metro.
For most first-time buyers in the Valley, the real floor is 3% conventional or 3.5% FHA.
What does that minimum look like in real dollars?
The percentage is easy. The dollar figure is what you actually save for. Here it is on a $650,000 Phoenix purchase.
| Loan type | Down payment on $650K | Note |
|---|---|---|
| VA | $0 | Eligible veterans, no county loan limit |
| Conventional 97 (3%) | $19,500 | Loan fits under the $832,750 Arizona conforming limit |
| Conventional (5%) | $32,500 | Standard 5% down |
| FHA (3.5%) | Does not fit at 3.5% | Maricopa FHA limit is $557,750, see below |
| Jumbo | Not needed at $650K | Jumbo starts above $832,750 |
The FHA line is the one that surprises buyers. FHA caps the loan by county, and in Maricopa County the 2026 limit is $557,750. A 3.5% down payment on a $650,000 home leaves a loan near $627,000, which is over that cap. To use FHA at that price you would cap the loan at $557,750 and cover the gap in cash, which pushes your down payment above $92,000. At that point conventional is the cleaner path.
Jumbo runs the other direction. A jumbo loan only starts above the conforming limit, $832,750 in Arizona for 2026, so a $650,000 home never needs one. Where jumbo does apply the minimum is higher. On a $900,000 home, 10% down is $90,000.
So loan choice sets your minimum, not the price tag. Under the FHA cap, FHA is often the lowest cash-to-close option. Above it, conventional at 3% or 5% becomes the floor.
What does the lender add back for a low down payment?
Mortgage insurance. Put down less than 20% and the lender adds a premium that protects them, not you. It is the cost of buying sooner instead of saving for years, and the two loan types handle it differently.
On a conventional loan it is private mortgage insurance, or PMI. It is a monthly add-on that comes off once you reach 20% equity, either by paying the loan down or through rising value with an appraisal. That exit is the reason many buyers pick conventional over FHA when their credit allows it.
On an FHA loan it is called MIP. FHA charges an upfront premium rolled into the loan plus a monthly premium, and at the low down payments most first-time buyers use, the monthly premium stays for the life of the loan. The common way out is refinancing into a conventional loan later, once you have the credit and the equity.
Can down payment assistance cover it?
Often, most of it. Arizona runs several down payment assistance programs, and the assistance rides on top of a regular FHA or conventional loan to cover the cash you would have brought to closing.
Home Plus works statewide and gives up to 4% of the purchase price. In Maricopa County and the City of Phoenix, Home in 5 Advantage gives up to 6%, the most help of any program in the Valley. Pima County runs its own program, and Pathway to Purchase covers a list of named cities outside central Phoenix.
Here is the honest limit. Assistance does not lower your monthly payment much, because the first mortgage stays the same size. What it changes is the savings wall. It can get you to the closing table a year or two sooner. And what gates you is your household income and the loan limit, not the price of the house.
Goes deeper: Arizona Down Payment Assistance Programs (publishing in this cluster)
Can my family gift me the down payment?
Yes, and it is common in Arizona. The rules are about proving where the money came from, not whether you are allowed to take it.
On an FHA loan your entire down payment can come from a gift, and family is the standard source. On a conventional loan for a primary residence gift funds are also allowed, and on the 3% and 5% first-time buyer programs the full down payment can usually be gifted. VA allows gifts too, though a veteran rarely needs one at zero down.
What every loan requires is a paper trail:
- A signed gift letter stating the money is a gift and not a loan, naming the donor and the relationship
- Proof the money moved, usually the donor’s withdrawal and your deposit
- Sometimes proof the donor had the funds to give
Season the money early. A gift that lands in your account well before you apply raises fewer questions than one that shows up the week of closing. Tell your broker about gift funds up front so the file is clean from day one.
How do you find your own minimum?
- Pick your loan type. VA if you are a veteran, FHA for lower credit or higher debt, conventional if your credit is around 620 or better. This sets the base percentage.
- Check your county loan limit. FHA caps by county, $557,750 in Maricopa for 2026. Conventional caps at the $832,750 Arizona conforming limit. Make sure your price fits the loan.
- Apply the minimum percentage. Zero for VA, 3% for conventional, 3.5% for FHA, 5% for standard conventional. Multiply it by your purchase price.
- Check down payment assistance. If your household income is under the program limit, Home Plus or Home in 5 can cover most of that cash.
- Confirm your gift fund rules. If family is helping, line up the gift letter and the paper trail before you apply.
Should you put down more than the minimum?
It depends on what you are optimizing for, and both answers are defensible.
Reasons to stay at the minimum: you keep cash for reserves, moving costs, and the repairs every home needs. You buy sooner instead of saving another year.
Reasons to put more down: a larger down payment means a smaller loan, which lowers the payment and can cut or remove mortgage insurance. Reach 20% on a conventional loan and PMI never starts. A larger down payment can also make your offer read as stronger to a seller.
There is no single right answer. It comes down to how much cash you have, how much you want to keep, and how long you plan to stay. Run it both ways before you decide.
What to ask a lender about this
- What is the minimum down payment on every loan I qualify for, not just the one you recommend?
- Does my purchase price fit under the FHA county limit, or does that rule FHA out?
- What is the cash to close on each option, not just the down payment?
- Which down payment assistance programs is my household income under?
- If my family gifts part of this, what documentation will you need and when?
Any broker should answer all five in one conversation. If the answer to the first one is a single loan type, ask how many lenders they can submit your file to.
Frequently asked questions
Can I buy a house in Arizona with no money down?
Yes, with the right loan. VA loans allow zero down for veterans and eligible service members, with no monthly mortgage insurance. USDA loans allow zero down on homes in areas mapped as rural, with income limits. For everyone else the floor is 3% on a conventional loan or 3.5% on FHA, and down payment assistance can cover most of that.
Are gift funds allowed for a down payment in Arizona?
Yes. FHA allows your full down payment to come from a family gift. Conventional loans allow gifts on a primary residence, and the 3% and 5% first-time buyer programs usually allow the whole down payment to be gifted. You need a signed gift letter and proof the money moved. Deposit gift funds early so the file is clean.
Should I put 20% down on my first home?
Not necessarily. Twenty percent removes private mortgage insurance on a conventional loan, but it also uses cash you may want for reserves and can add a year or more of saving. Many first-time buyers in Arizona put down 3% to 5% and buy sooner. Run both scenarios before you decide.
What is the minimum down payment for a first-time buyer in Arizona?
For most buyers, 3% on a conventional loan or 3.5% on FHA. Veterans can go to zero with a VA loan. On a $650,000 home, 3% is $19,500. Down payment assistance can lower the cash you bring further if your household income is under the program limit.
Can I use an FHA loan on a $650,000 home in Arizona?
Usually not at the minimum 3.5% down. FHA’s 2026 loan limit in Maricopa County is $557,750, and a $650,000 purchase with 3.5% down needs a larger loan than that. To make FHA work you would cap the loan at the limit and cover the difference in cash, pushing your down payment above $92,000. At that price a 3% or 5% conventional loan is usually the better fit.
About the author
Michael Creel, Founder, Forward Loans. NMLS #420674.
Michael Creel founded Forward Loans in 2020 after 20-plus years in mortgage, marketing, and real estate. He is based in Phoenix and personally licensed to originate loans in Arizona, California, Colorado, and Texas (NMLS #420674).
About this guide
Last updated September 2026. Loan limits, program terms, and credit requirements change, and the figures here should be confirmed with your loan officer or the program’s current materials before you rely on them. This page is education, not a commitment to lend. All loans are subject to full underwriting and property eligibility.
Forward Loans is licensed as both a mortgage broker and a non-delegated correspondent mortgage lender. Depending on the loan program, we either arrange financing through wholesale lenders, or originate and fund the loan ourselves and sell it to an investor that provides the underwriting decision.
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