Arizona conventional mortgage: limits, down payment math and the state rules

On Arizona’s rough $430,000 median, a conventional loan with 5% down means $21,500 at closing and about $3,038 a month with taxes and mortgage insurance; with 20% down, $86,000 and about $2,375. Everything below is worked on those numbers and on the state rules that change them.

Conforming or jumbo in Arizona?

In Arizona, a one-unit conventional loan above $832,750 is jumbo in 2026. The median price of about $430,000 means the median buyer is well inside the limit even with 3% down (loan $417,100), so conforming rules apply to most purchases. Two-, three- and four-unit homes have higher limits. Every Arizona county is in the table below; see conforming loan limits and jumbo loans.

County-level loan limits in Arizona for 2026

No county in Arizona qualifies as an FHFA high-cost area for 2026, so the table below is flat: $832,750 for one unit in all 15 counties, rising to $1,601,750 for a four-unit property. Limits change every January; these are the figures for mortgages acquired in calendar year 2026.

Source: FHFA, Conforming Loan Limit Values for 2026 (county list, mortgages acquired in calendar year 2026). Limits are for Fannie Mae and Freddie Mac loans; FHA and VA use their own county figures.

Monthly cost on a $430,000 Arizona home

Illustrative 6.5% 30-year fixed rate, principal and interest only; mortgage insurance at typical market rates for each down payment (it varies with credit score); property tax at the state’s approximate 0.56% effective rate. Homeowners insurance and any HOA come on top. None of it is an offer.

Under 20% down, conventional loans require mortgage insurance until the loan-to-value falls; the next section gives the ${e.nom} timeline. Payment tables at other amounts and rates: mortgage payment tables.

Cancelling mortgage insurance: the dates

Federal rules, identical in Arizona: you may request cancellation at 80% of the original value and the servicer must cancel at 78%. On the scheduled amortization alone, the 5% down loan above reaches 80% after about 10 years and 4 months and 78% after about 11 years and 3 months; the 10% down loan, 80% after about 7 years and 11 months; the 3% down loan, 80% after about 11 years and 1 months. At roughly $255 a month on the 5% scenario, that is about $31,620 of PMI over the period — the strongest argument for extra principal payments or a value-based cancellation request once prices rise.

What Arizona adds at closing

Arizona purchases close through licensed escrow agents — usually the escrow department of a title company — regulated by the Department of Insurance and Financial Institutions; attorneys are rarely involved. It is a dry-funding state: the parties sign, the escrow agent records the deed of trust with the county recorder, and funds are disbursed after recording confirmation. Escrow fees are customarily split between buyer and seller, and the buyer pays the lender’s title policy.

Arizona has no mortgage recording tax and no intangible tax on the note, and since Proposition 100 in 2008 the Arizona Constitution forbids any real estate transfer tax. The county recorder charges a flat per-document recording fee for the deed of trust, and an affidavit of property value accompanies the deed. Borrowers pay nothing to the state to record a loan. Arizona imposes no real estate transfer tax — only a flat affidavit of property value fee of a few dollars — so the government share of closing costs is negligible.

Arizona closings use escrow companies rather than attorneys; total closing costs typically run 2% to 3% of the price, and sellers customarily pay for the owner’s title policy in much of the state.

State law a conventional borrower should know

Prepayment. Arizona has no statute that prohibits prepayment penalties on residential first mortgages outright; they are enforceable if the note discloses them, and the mortgage banker and broker statutes in A.R.S. Title 6, chapter 9 regulate disclosure and licensee conduct rather than capping the penalty itself. On a conforming loan the question is moot — the agencies do not accept penalties — but check a portfolio or jumbo note.

Spouses and title. Arizona is a community property state, and A.R.S. § 25-214(C) requires both spouses to join in any acquisition, disposition or encumbrance of community real property, so a non-borrowing spouse must sign the deed of trust (or a disclaimer deed confirming the home is the borrower’s sole and separate property).

Homestead. Arizona’s homestead exemption (A.R.S. § 33-1101) was raised from $150,000 to $250,000 in 2022, and Proposition 209, approved by voters that November, lifted it to $400,000 with annual inflation adjustments thereafter.

The complete state layer — licensing, predatory-lending limits, disclosures, foreclosure — is on mortgage laws in Arizona.

Frequently asked questions

What is the conforming loan limit in Arizona for 2026?

$832,750 for a single-family home, identical across Arizona’s 15 counties because FHFA found no high-cost area in the state for 2026. A loan above it is jumbo; a conforming first plus a second lien is the usual way to stay under.

When can I cancel PMI on a conventional loan in Arizona?

The request point is 80% of the original value, the automatic point 78% — federal rules, identical in Arizona. With 5% down on the state’s $430,000 median at 6.5%, the amortization schedule alone gets you to 80% in roughly 10 years and 4 months; with 10% down, in about 7 years and 11 months. Paying extra principal shortens both.

Does Arizona add anything to a conventional loan’s closing costs?

Arizona has no mortgage recording tax and no intangible tax on the note, and since Proposition 100 in 2008 the Arizona Constitution forbids any real estate transfer tax. Arizona imposes no real estate transfer tax — only a flat affidavit of property value fee of a few dollars — so the government share of closing costs is negligible. Arizona closings use escrow companies rather than attorneys; total closing costs typically run 2% to 3% of the price, and sellers customarily pay for the owner’s title policy in much of the state.

Related: Changing jobs before closing on a house: what survives underwriting, Construction-to-permanent loans: one closing, two closings and the 18-month clock, Getting a mortgage on retirement income: what counts and how it is calculated, Buying a home from a family member: gift of equity and the non-arm’s-length file. First home in Arizona: programs and assistance. Hub: Conventional loan.