VA Loan Guide for Veterans in Arizona
Arizona’s VA loan landscape offers veterans and service members diverse opportunities to become homeowners, whether settling in the bustling Phoenix metro area or enjoying Tucson’s vibrant cultural scene.
With generally moderate home prices compared to coastal markets, Arizona appeals to buyers seeking affordability and stability.
VA-backed mortgages lower barriers by removing down payments, reducing monthly costs, and easing credit requirements. Add in local programs offering down payment assistance, financial counseling, and closing cost help, and the path to homeownership becomes even smoother.
By understanding VA loans and tapping into resources offered in Arizona’s top cities, Veterans can secure a home that fits their needs.
What are VA Loans?
A VA loan is a home financing option supported by the U.S. Department of Veterans Affairs, available to qualifying veterans, active-duty personnel, and certain surviving spouses. By guaranteeing these loans, the VA enables borrowers to purchase a home without a down payment, helping them conserve their funds.
In addition, VA loans eliminate the need for private mortgage insurance, reducing monthly expenses. Interest rates are often competitive, and credit standards are more accommodating than those of traditional mortgages, expanding access to homeownership. These benefits can be applied to various types of residential properties, as long as the borrower intends to use the home as their primary residence.
VA Loan Benefits
VA loans offer several benefits that make them a great option for veterans, active-duty service members, and surviving spouses. These benefits include:
No Down Payment
The ability to buy a home with no down payment is the hallmark benefit of VA loans. Since its inception, this program has enabled qualified Veterans and service members to purchase homes without the burden of saving for a hefty down payment.
Unlike most conventional loans that require a down payment—often starting at 3% or more—VA loans eliminate this financial barrier. Saving for a down payment can take years for many military families, making this benefit a game-changer. For those who have the cash, opting for a VA loan allows them to allocate that money toward other investments or savings goals.
Lower Interest Rates
VA loans consistently offer some of the lowest average interest rates in the mortgage market, according to Optimal Blue data. For the past two years, VA loans have maintained this position, making them an attractive choice for Veterans.
A lower interest rate helps buyers save significantly over time, both in monthly payments and overall loan costs. It also increases purchasing power, allowing Veterans to qualify for larger loans with the same monthly budget.
Flexible Credit Guidelines
VA loans are designed to make homeownership accessible, especially for Veterans with less-than-perfect credit. They feature more forgiving credit standards compared to other loan programs.
While credit score requirements vary by lender, VA loans often accept scores lower than those required for conventional loans. At Veterans United, for instance, borrowers typically need a FICO score of 620. Additionally, VA loans offer flexibility with debt-to-income (DTI) ratios and shorter waiting periods after financial hardships like bankruptcy or foreclosure.
Closing Cost Limits
VA loans come with protections to limit the financial burden of closing costs. Lenders are restricted on how much they can charge Veterans for loan origination and processing.
Sellers in a VA loan transaction can cover all the buyer’s loan-related closing costs and provide up to 4% of the loan amount in concessions. Furthermore, certain fees and costs are prohibited from being charged to VA borrowers, further reducing out-of-pocket expenses.
No Private Mortgage Insurance
Conventional loans typically require private mortgage insurance (PMI) for borrowers who put down less than 20%, adding an ongoing monthly cost. FHA loans also come with upfront and monthly mortgage insurance premiums.
VA loans eliminate the need for PMI altogether, even with zero down payment. This not only saves Veterans money but also maximizes their purchasing power, enabling them to afford more home for their budget.
Lifetime Benefit
One of the most significant advantages of VA loans is that they are a lifetime benefit. Eligible Veterans, active-duty service members, and surviving spouses can use their VA loan benefits multiple times throughout their lives, provided they meet the eligibility criteria and have sufficient entitlement remaining.
Whether you’re buying your first home, upgrading to a larger property, or purchasing a vacation home, the VA loan program remains accessible. Even if you’ve defaulted on a previous VA loan, you may still regain eligibility after repaying the loan or restoring your entitlement. This flexibility ensures that your VA loan benefit can support your housing needs at every stage of life.
Arizona Veteran Programs by City
Phoenix Veteran Homebuyer Programs
HandsOn Greater Phoenix’s Veterans Assistance Program (VAP) connects veterans with dedicated volunteers who help improve their living conditions and enhance their quality of life. Through hands-on projects and community partnerships, this program supports veterans in maintaining a safe, comfortable home environment and accessing essential resources.
- Volunteers assist with basic home repairs, yard work, and maintenance tasks.
- Partners with local organizations to provide referrals and support services tailored to veterans’ needs.
Learn More: HandsOn Greater Phoenix’s Veterans Assistance Program (VAP)
Veterans Association of Real Estate Professionals (VAREP) – Phoenix Chapter
• Offers free homebuyer workshops tailored to veterans.
• Guides buyers in accessing VA loans and local assistance.
Discover VAREP Phoenix: VAREP
Save the Family – Veteran Housing Services
• Helps veterans achieve housing stability through counseling and education.
• Prepares buyers to obtain mortgage financing and maintain homeownership.
Explore Save the Family: Save the Family
Tucson Veteran Homebuyer Programs
HUD-VASH Program – Tucson VA & Pima County
• Provides housing vouchers and supportive services to homeless veterans.
• Helps veterans transition from temporary to permanent homeownership.
Find More: HUD-VASH Tucson
Compass Affordable Housing – Veteran Assistance
• Offers housing counseling, financial readiness, and support finding VA-friendly loans.
• Assists veterans in navigating local grants and down payment aid.
Learn About Compass: Compass Affordable Housing
Veterans One-Stop Center Tucson
• One-stop hub for housing referrals, legal advice, and mortgage readiness.
• Connects vets to credit repair and homebuyer workshops for stable homeownership.
Visit Veterans One-Stop: Pima County Veterans Services (Navigate to Veterans Services)
Mesa Veteran Homebuyer Programs
A New Leaf – Mesa Veteran Homeownership Assistance
• Offers counseling to improve credit and savings habits.
• Connects veterans with VA-approved lenders and down payment grants.
Explore A New Leaf: A New Leaf
Mesa Housing Authority – HUD-VASH Partnerships
• Provides vouchers and resources to help veterans secure housing and move toward buying a home.
• May assist in transitioning from rental support to mortgage readiness.
Check Mesa Housing: Mesa Housing Authority
Operation Tiny Home (Local Collaborations) – Mesa
• Assists veterans with transitional housing and paths to permanent homeownership.
• Helps secure funding for tiny homes or affordable properties.
Learn More: Operation Tiny Home
Glendale Veteran Homebuyer Programs
Glendale Community Housing – HUD-VASH
• Helps veterans transition from rental assistance to eventual homeownership.
• Offers guidance in finding lenders and securing mortgages.
Glendale Housing: Glendale Community Housing
West Valley Housing Assistance Center (Serving Glendale Veterans)
• Assists with financial literacy, homebuyer education, and VA loan navigation.
• Connects vets to local grants and low-interest loans.
Check Services: Maricopa County Housing (Navigate to Veterans Housing)
Lutheran Social Services of the Southwest – Veterans Homebuyer Counseling
• Provides one-on-one housing counseling for veterans.
• Helps identify suitable VA-friendly lenders and down payment programs.
Learn More: LSS Southwest
Chandler Veteran Homebuyer Programs
Chandler Housing Division – HOME Down Payment Assistance
• Offers down payment grants and closing cost aid for income-eligible buyers, including veterans.
• Reduces upfront expenses, making homeownership more accessible.
Chandler Housing: City of Chandler Housing
Veterans First Ltd
• Specializes in veteran housing counseling and mortgage readiness.
• Guides buyers through VA loan applications and local assistance programs.
More Info: Veterans First Ltd
Habitat for Humanity Central Arizona – Chandler
• Partners with veteran families to provide affordable homebuying opportunities.
• Offers homeownership education and post-purchase support.
Find Habitat AZ: Habitat for Humanity Central Arizona
VA Loan Eligibility Criteria
To qualify for a VA loan, applicants must meet the service and eligibility criteria set by the Department of Veterans Affairs.
- Veterans: Those who have met the required active-duty service and were discharged under conditions other than dishonorable.
- Active-duty service members: Current active-duty personnel are eligible to apply. National Guard and Reserve members: Must have completed six years of service or served a minimum of 90 days of active duty during wartime.
- Surviving spouses: Spouses of service members who died in the line of duty or from a service-related injury may qualify for VA loan benefits.
Here are the basic service time requirements:
- 90 consecutive days of active duty during wartime
- 181 consecutive days of active duty during peacetime
- 6 years of service in the National Guard or Reserves, or 90 days of active-duty service under Title 32 orders (with at least 30 consecutive days served)
VA Loan Eligibility Calculator
How to Obtain a Certificate of Eligibility (COE)
Securing a Certificate of Eligibility (COE) is an essential first step toward qualifying for a VA loan. This document confirms that you meet the VA’s service criteria.
How to Apply:
- Online (eBenefits): The quickest option is applying through the VA’s eBenefits portal.
- Through a Lender: VA-approved lenders can often request your COE directly from the VA’s online system.
- By Mail: Submit VA Form 26-1880 (Request for Certificate of Eligibility) via mail, though this takes longer.
Required Documents: • Veterans: DD Form 214 showing service history and discharge details.
- Active-Duty: A statement of service from your commanding officer or personnel office.
- National Guard/Reserve: Point statements and service proof if never activated.
- Surviving Spouses: May need the Veteran’s death certificate and marriage license.
Arizona Housing Market Overview
Arizona’s housing market offers a balance of affordability and opportunity, making it attractive for veterans utilizing VA loans. While home prices have steadily increased in popular urban hubs like Phoenix and Mesa, the state remains more accessible than high-cost coastal markets. Veterans can combine VA loan benefits—no down payment and no PMI—with local assistance programs that reduce upfront expenses and enhance long-term financial stability.
With a range of housing options, from suburban neighborhoods to city-center condos, Arizona caters to diverse preferences. By leveraging these resources, veterans can confidently navigate the state’s market and find a home that matches their lifestyle and budget.
| City | Average Home Price | Estimated Monthly VA Loan Payment* | Average Property Tax/Year |
|---|---|---|---|
| Phoenix | $350,000 | ~$2,100 | ~$2,100 |
| Tucson | $240,000 | ~$1,440 | ~$1,440 |
| Mesa | $320,000 | ~$1,920 | ~$1,920 |
| Chandler | $330,000 | ~$1,980 | ~$1,980 |
| Glendale | $280,000 | ~$1,680 | ~$1,680 |
*Monthly payment estimates assume standard VA loan rates and terms. Actual costs may vary.
What is the Arizona VA Loan Limit?
$726,200
In Arizona, veterans with full VA loan entitlement can generally borrow as much as their lender approves without a down payment. The VA no longer sets strict county-based loan limits for borrowers with full entitlement. For those with partial entitlement, certain limits may still apply based on local property values. Although Arizona’s housing costs have risen, they remain moderate compared to pricier regions, making VA loans especially beneficial. Consult lenders to understand how entitlement and local market conditions impact your borrowing capacity.
Arizona Property Tax Exemptions for Disabled Veterans
Arizona provides property tax exemptions for qualifying disabled veterans, reducing long-term housing expenses. Eligibility and exemption amounts depend on the veteran’s disability rating and meet specific state guidelines. Contact your local county assessor’s office or the Arizona Department of Revenue for detailed instructions and application forms. By taking advantage of these exemptions, veterans can significantly lower the annual costs associated with homeownership, enhancing affordability and financial stability.
Types of VA Loans
VA Purchase Loan
This option helps eligible veterans acquire a home under more favorable conditions than traditional financing. Often, there’s no down payment required, and interest rates tend to be lower, making the path to homeownership less costly. It’s suitable for a range of property types, as long as the borrower plans to live in the home as their primary residence.
• Provides full financing so borrowers avoid a large upfront down payment
• Generally offers reduced interest rates compared to conventional loans
• Can be used for various property types, including single-family homes, certain condos, or multi-unit residences
Interest Rate Reduction Refinance Loan (IRRRL)
Commonly called a VA Streamline Refinance, this loan helps veterans adjust their current VA mortgage to secure more favorable terms. With minimal paperwork, no appraisal in most cases, and potentially no credit check, the IRRRL can significantly lower monthly payments or provide a more stable payment structure.
• Often requires no appraisal or extensive documentation to speed refinancing
• Can convert an adjustable-rate mortgage into a fixed-rate loan to stabilize payments
• Allows rolling closing costs into the loan, reducing immediate out-of-pocket expenses
Cash-Out Refinance Loan
A cash-out VA refinance loan enables veterans to leverage their home’s equity for other financial needs. Whether it’s funding major home improvements, consolidating higher-interest debt, or covering essential medical bills, this type of loan turns built-up equity into accessible cash.
• Lets homeowners tap into up to 100% of their home equity (subject to lender policies)
• Can refinance both VA and non-VA mortgages
• Offers flexible use of the cash, from household updates to covering emergencies
Native American Direct Loan (NADL)
The NADL program supports Native American veterans or veterans married to a Native American in buying, building, or enhancing homes on federal trust land. With no required down payment and competitive rates, it addresses the unique homeownership challenges that can arise within Native American communities.
• Requires no down payment and maintains competitive interest rates
• Focuses specifically on homeownership within federal trust land areas
• Aims to keep closing costs low to improve affordability
Rehabilitation and Renovation Loan
A VA-backed rehab loan helps finance essential repairs or renovations as part of the mortgage itself. Instead of taking out a separate loan for updates, borrowers can roll these costs into their primary home loan, simplifying improvements and potentially increasing property value.
• Finances critical improvements like structural repairs or system upgrades
• Supports modernization projects, such as energy-efficient installations or kitchen remodels
• Bundles renovation expenses into the mortgage, streamlining the overall financing process
Energy Efficient Mortgage (EEM)
A VA EEM supports energy-efficient home improvements that reduce monthly utility expenses and promote sustainability. By investing in solar panels, better insulation, or more efficient HVAC systems, veterans can lower their long-term costs and contribute to environmental stewardship.
• Funds various eco-friendly upgrades to decrease energy usage and costs
• Can be combined with other VA loans for seamless integration into the purchase or refinance
• Encourages long-term savings and a reduced environmental impact
Arizona Housing Programs for Veterans (Statewide)
Arizona Department of Housing – Home Plus Program
Offers down payment assistance and competitive mortgage rates to income-qualified buyers, including veterans. Helps reduce upfront costs and secure stable housing.
- Provides down payment and closing cost support
- Competitive fixed-rate mortgage financing
- Open to first-time and repeat buyers meeting income limits
- Learn more about Home Plus
Arizona Housing Finance Authority (AzHFA) Mortgage Credit Certificate (MCC)
Offers tax credits on mortgage interest, reducing a veteran’s tax liability and making monthly payments more manageable. Pairs well with VA loans for further cost savings.
- Grants a dollar-for-dollar tax credit on mortgage interest
- Reduces monthly expenses and overall financial burden
- Can be combined with other assistance programs
- Discover AzHFA MCC
Southwest Fair Housing Council – Veteran Homebuyer Counseling
Provides free or low-cost education and guidance for veteran homebuyers, including credit repair, loan comparison, and assistance finding local grants or down payment help.
- Offers personalized homebuyer coaching
- Helps navigate VA loan requirements and lender options
- Connects veterans to statewide housing resources
- Explore Southwest Fair Housing Council
Frequently Asked Questions
What is the VA loan limit in Arizona?
In Arizona, veterans with full entitlement can borrow as much as a lender approves without a down payment. Partial entitlement may impose limits.
Do I need a down payment for a VA loan?
Most Arizona veterans can buy a home with zero down, provided they have full VA loan entitlement, lowering initial costs.
What credit score is required for a VA loan?
The VA doesn’t have a set minimum, but most Arizona lenders prefer at least a 620. Higher scores can secure better rates.
How long does it take to close on a VA loan?
Closings typically range from 30 to 45 days, similar to conventional loans. Working with an experienced lender can speed up the process.
Can I use a VA loan to buy a rural home in Arizona?
Yes, VA loans apply statewide, including rural areas, as long as the property meets VA guidelines and is your primary residence.
Do disabled veterans get property tax exemptions in Arizona?
Yes, qualifying disabled veterans may receive property tax exemptions. Contact your county assessor or the state revenue department for details.
Can I use a VA loan more than once?
Yes, you can reuse a VA loan if you restore or have remaining entitlement. Selling the prior VA-financed home usually restores full entitlement.
Are there local Arizona programs to help with VA loan closing costs?
Arizona programs like Home Plus and AzHFA MCC offer down payment and closing cost help. Combining VA benefits with these can reduce expenses.
Can I refinance my home with a VA loan?
Yes, you can refinance with a VA IRRRL or cash-out option to lower rates, reduce payments, or access equity for renovations or debt consolidation.
What documents are needed to apply for a VA loan?
Typical documents include your Certificate of Eligibility, proof of income, credit reports, asset statements, and valid ID. Providing these upfront streamlines approval.