First-Time Home Buyer in Arizona? Here Are 10 Things You Should Know Before You Start

Homebuyer guide · August 11, 2026 · 8-minute read

Wondering how to buy your first home in Arizona without feeling overwhelmed? You’re in the right place.

Buying a home is an exciting new beginning, but the process can also bring plenty of questions. How much should you save? Which loan is right for you? Can you qualify with less than 20% down?

The good news is that you do not have to figure it all out alone. With the right preparation and a dedicated mortgage professional by your side, you can move forward with greater clarity and confidence.

Here are 10 important things every first-time homebuyer in Arizona should know before getting started.

1. You may qualify as a first-time buyer: even if you owned a home before

Many first-time homebuyer programs define “first-time buyer” as someone who has not owned a principal residence within the past three years.

That means you may still qualify for certain programs if you previously owned a home but have been renting or living elsewhere for at least three years. Program requirements vary, so it is important to ask about your specific situation.

Most first-time buyer and down payment assistance programs also require that:

• The home will be your primary residence

• You meet income and purchase-price limits

• Your credit, income, and debts fit the program guidelines

• You complete an approved homebuyer education course, when required

A personalized consultation can help you understand which options may fit your goals.

2. You do not need 20% down

One of the biggest homebuying myths is that you must save 20% before you can purchase. While a larger down payment can reduce your loan amount and may help you avoid mortgage insurance, it is not required for many loan programs.

Common options include:

• FHA Loans: As little as 3.5% down for qualifying borrowers. FHA financing may be helpful if you are a first-time buyer or rebuilding your credit.

• Conventional Loans: Some programs offer down payments as low as 3%, depending on your qualifications.

• VA Loans: Eligible veterans, active-duty service members, and some surviving spouses may qualify for $0 down financing.

• USDA Loans: Eligible buyers purchasing in qualifying rural areas may also be able to buy with $0 down.

The right choice depends on your credit, income, savings, property, and long-term plans. We’ll help you compare the options instead of assuming one loan fits everyone.

3. Down payment assistance may be available

Saving for a down payment and closing costs can feel like the biggest obstacle. Arizona offers programs that may help qualified buyers manage these upfront expenses.

For example, the Arizona IDA Home Plus program offers down payment and closing-cost assistance in Arizona. The program page explains that Home Plus may provide up to 4% assistance, while specific terms, income limits, and eligibility requirements apply.

The Arizona Department of Housing also provides information about Arizona homeownership programs.

Down payment assistance may be structured as:

• A grant

• A forgivable loan

• A deferred second mortgage

• Assistance toward your down payment, closing costs, or both

These programs may have rules regarding occupancy, income, credit, purchase price, and how long you must remain in the home. Funding and guidelines can change, so always verify current details with an approved participating lender.

4. A pre-approval is more helpful than a quick estimate

A mortgage calculator can give you a general idea of what your payment might be. A pre-approval goes much further.

During pre-approval, your lender reviews information such as:

• Income and employment

• Credit history

• Monthly debts

• Bank accounts and available assets

• Down payment funds

• Loan program eligibility

You receive a clearer estimate of your buying power and a pre-approval letter you can provide with an offer.

Pre-approval also helps you focus your search on homes that fit your budget. It can make the offer process smoother because you already understand your financing position.

San Tan Mortgage offers a simple online pre-approval process, and we’re ready to guide you through each step.

5. Your monthly payment includes more than principal and interest

When you think about affordability, do not look only at the mortgage principal and interest. Your complete monthly housing payment may also include:

• Property taxes

• Homeowners insurance

• Mortgage insurance, if applicable

• HOA dues

• Flood insurance, if required

• Estimated utilities and maintenance

Arizona summers can also make cooling costs an important part of your household budget. A home that looks affordable based on principal and interest alone may feel very different once all expenses are included.

Before you begin touring homes, ask your lender to create realistic payment scenarios. This can help you plan for a payment that supports your long-term stability, not just your initial approval amount.

6. Your credit score matters, but it is not the only factor

Your credit score can affect your interest rate, loan options, mortgage insurance, and down payment requirements. However, lenders consider your complete financial picture.

Other factors may include:

• Payment history

• Credit card balances

• Length of credit history

• Income stability

• Debt-to-income ratio

• Cash reserves

• Employment history

Before applying, avoid opening unnecessary new accounts or making large purchases without discussing them with your lender. Even small financial changes can affect your application.

If your credit is not where you want it to be, that does not mean homeownership is out of reach. We can talk through practical next steps and help you understand what may improve your options.

7. Budget for closing costs and other upfront expenses

Your down payment is only one part of the cash you may need to purchase a home. Closing costs commonly include lender, title, escrow, appraisal, recording, and other transaction fees.

As a general planning estimate, closing costs may be around 2% to 3% of the purchase price, although your actual amount will depend on your loan, property, and transaction.

You may also need funds for:

• Earnest money

• Home inspection

• Appraisal

• Prepaid taxes and insurance

• Homeowners insurance

• Moving expenses

• Initial repairs or furnishings

Seller credits or down payment assistance may help reduce your out-of-pocket costs in certain situations. Your lender and real estate agent can help you understand what is permitted and how it affects your offer.

8. Do not skip the home inspection

Arizona purchase contracts commonly include an inspection period. The exact timeline is set by the contract, so review it carefully with your real estate professional.

A general inspection may identify issues involving:

• Roof condition

• Air conditioning and heating systems

• Plumbing and electrical systems

• Foundation or structural concerns

• Windows and doors

• Attic and insulation

• Water damage or safety concerns

Because Arizona’s heat and sun can be hard on roofs and air-conditioning systems, specialized inspections may also be worth considering. Depending on the property, you may ask about termite, roof, sewer, pool, or HVAC inspections.

An inspection is not a guarantee that every issue will be found. It is one useful tool that helps you make a more informed decision before completing your purchase.

9. Compare loan options based on your goals

There is no single “best” mortgage for every first-time buyer. The best fit depends on your needs today and your plans for the future.

FHA Loans

Best for: First-time buyers or buyers who need flexible qualification options.

Highlights:

• As little as 3.5% down for qualifying borrowers

• Flexible credit guidelines

• Fixed-rate options available

• Upfront and monthly mortgage insurance generally apply

Ideal if you want: A more flexible path to purchasing a primary residence.

Conventional Loans

Best for: Buyers with solid credit and steady income.

Highlights:

• Down payment options starting around 3% for eligible borrowers

• Competitive rates

• Private mortgage insurance may be removable as equity grows

• Fixed- and adjustable-rate options

Ideal if you want: Flexible terms and potential long-term savings.

VA and USDA Loans

Best for: Eligible service members and veterans, or buyers purchasing in qualifying rural areas.

Highlights:

• Potential $0 down financing

• Competitive fixed-rate options

• Eligibility and property rules apply

Ideal if you want: To preserve more of your savings for moving, repairs, and future needs.

You can learn more about available loan types on the San Tan Mortgage home financing page.

10. Choose a mortgage partner who will explain the process

Your lender should do more than send you forms. You deserve clear answers, responsive communication, and financing recommendations tailored to your budget.

Look for a mortgage professional who will:

• Explain loan terms in plain language

• Review multiple financing options

• Help you understand your estimated payment

• Discuss down payment assistance when appropriate

• Keep you informed from application through closing

• Answer questions without making you feel rushed

At San Tan Mortgage, we believe home financing should feel personal, transparent, and manageable. Stacey Siewert has more than 25 years of experience in real estate, banking, and mortgage lending and has helped more than 1,000 families navigate the mortgage process.

how it works

Your first steps can be simple:

1. Review your income, credit, debts, and savings.

2. Gather your basic financial documents.

3. Schedule a conversation with a mortgage professional.

4. Compare loan programs and estimated payments.

5. Get pre-approved before beginning your home search.

6. Work with your real estate agent to find a home that fits your goals.

You can also explore San Tan Mortgage’s educational resource, Keys to Your First Home, available in Kindle and paperback formats.

ask us anything

Questions are a normal part of buying your first home. You can ask about credit scores, interest rates, down payment assistance, loan requirements, closing costs, or the timeline.

When you’re ready, contact San Tan Mortgage or call 480-277-9723 to discuss your goals. We’ll help you create a personalized plan and guide you toward the next right step: without pressure.

Homeownership may feel like a big dream today, but with dedicated guidance and a flexible financing strategy, it can become a realistic and exciting new beginning. We’re here whenever you’re ready to talk!

Important: Mortgage approval, interest rates, loan terms, down payment requirements, program availability, and assistance amounts are subject to borrower qualifications, property eligibility, underwriting guidelines, market conditions, and program rules. Information about down payment assistance programs may change without notice. This article is for educational purposes and is not a commitment to lend or a guarantee of approval. San Tan Mortgage powered by Xpert Home Lending, Inc. is an Equal Opportunity Lender and Equal Housing Lender. NMLS #2179191.