VA Home Loans in Arizona
Luke, Davis-Monthan, MCAS Yuma, Yuma Proving Ground and Fort Huachuca, plus one of the largest populations of retired veterans in the country, make Arizona a VA loan state. Nothing down, no monthly mortgage insurance, no transfer tax to pay, and a lender licensed here who closes VA loans every week.
Arizona Mortgage Banker License 1029604 and Mortgage Broker License 1021032. NMLS #1925352.
VA in Arizona, 2026
Down payment
$0 with full entitlement
Loan limit
None with full entitlement
Funding fee, first use
2.15% with less than 5% down; exempt if you receive VA disability compensation
Property tax
Prop 130 exemption by rating; full exemption at 100%
Transfer and mortgage tax
None
$0
Down payment with full entitlement
0.5%
Funding fee on an IRRRL streamline
$0
Arizona transfer and mortgage tax
15
Arizona counties, licensed statewide
Why a VA loan is the right first question for an Arizona veteran.
About half a million veterans live in Arizona, many of them retirees who chose the state for the same reasons everyone else does, alongside the active-duty families around Luke in the West Valley, Davis-Monthan in Tucson, Yuma and Sierra Vista. A VA loan lets them buy with nothing down and no monthly mortgage insurance, often at a competitive rate compared with conventional financing, with no loan limit for a veteran with full entitlement.
Arizona adds no state tax to the benefit. There is no transfer tax and no tax on recording the mortgage, so a VA purchase or an IRRRL closes for the lender’s and escrow company’s fees alone. Since Proposition 130, veterans with a disability rating get a property tax exemption in proportion to the rating, and from tax year 2026 a veteran rated 100 percent service-connected pays no property tax on the home at all. The VA does require a wood-destroying insect inspection on Arizona homes.
This page covers the VA program as it works in Arizona. For the state as a whole, see our Arizona page; for the benefit itself in depth, see the VA hub. If you are comparing, FHA in Arizona is the usual alternative, and for a veteran it is often the more expensive one.
Three ways to use the benefit in Arizona.
Buying, dropping the rate on a VA loan you already have, or pulling equity out. With no mortgage tax, each of them costs less to close here than in most states.
Buying
VA purchase
Nothing down with full entitlement and no loan limit, from a Tucson starter to a $900,000 home in north Scottsdale. The funding fee is 2.15 percent on first use or 3.3 percent after, financed into the loan and waived for veterans receiving disability compensation. The seller can pay your closing costs, and items the VA counts as concessions, such as prepaids and the funding fee, are capped at 4 percent of the loan.
Lower payment
VA IRRRL streamline
Replace a VA loan with a lower rate, usually with no appraisal and no income verification, for a 0.5 percent funding fee. With no Arizona tax on the new mortgage, an IRRRL here costs less to close than in states that tax the new mortgage, which can shorten the break-even.
Use equity
VA cash-out refinance
Replace any loan, VA or not, with a VA loan for up to 100 percent of the value under VA rules, though most lenders cap it at 90. Arizona veterans use it for a roof or air conditioning before summer, a pool, debt consolidation, or to move from an FHA loan and drop the mortgage insurance.
The funding fee, and what applies in Arizona.
The fee is set by federal law and fixed through November 2031. The last column is what an Arizona veteran should know about each row.
| Your situation | First use | Subsequent use | In Arizona |
|---|---|---|---|
| No down payment | 2.15% of the loan | 3.3% of the loan | The seller can pay your closing costs; the funding fee and prepaids count as concessions, capped at 4% of the loan |
| 5% to 9.99% down | 1.5% | 1.5% | No state tax to reduce; a down payment only lowers the funding fee and the payment |
| 10% or more down | 1.25% | 1.25% | Rarely worth it; VA charges no mortgage insurance and Arizona charges no mortgage tax |
| IRRRL streamline refinance | 0.5% | 0.5% | No transfer or mortgage tax on the new loan; the escrow fee and lender costs are the whole bill |
| Exempt | Receiving VA disability compensation, or eligible and taking retirement pay instead; Purple Heart recipients on active duty; surviving spouses receiving DIC | Same | The same rating earns a Proposition 130 property tax exemption in proportion to the rating, or a full exemption at 100% |
Lenders set credit and income rules; the VA sets none. Most want a 580 to 620 score and residual income after the payment. Arizona HOA dues go into that payment.
Proposition 130 and what it does to your tax bill.
Arizona voters restored the veteran property tax exemption in 2022. A veteran with a VA disability rating, service-connected or not, receives an exemption from assessed value in proportion to the rating, and from tax year 2026 a veteran rated 100 percent service-connected has the home fully exempt from property tax, with the exemption continuing for an unremarried surviving spouse. Exemption amounts and rules are set by state law and can change; confirm the current figures with your county assessor.
You apply with the county assessor after closing. We estimate your escrow with the exemption you qualify for, and the same rating usually waives the VA funding fee, so both the loan and the payment reflect it.
Yuma to Flagstaff
VA loans closed through an Arizona escrow office near you, wherever in the state the home is.
Six Arizona details on a VA file.
The VA rules are national. These are the parts that are particular to Arizona.
01
No transfer or mortgage tax
The deed records for a flat county fee and the Affidavit of Property Value is paperwork, not a tax. A VA purchase or IRRRL in Arizona closes for the lender’s and escrow company’s fees, which is why the break-even on an IRRRL is short here.
02
Termite inspection
The VA requires a wood-destroying insect inspection on homes in Arizona, with any active infestation or damage treated before closing. Termites are common across the Sonoran Desert, so a clear report matters; the seller often pays for the inspection.
03
Proposition 130 exemption
Apply with the county assessor after closing. The exemption is a set amount of assessed value multiplied by your disability percentage, and from tax year 2026 a 100 percent service-connected rating exempts the home entirely, continuing for a surviving spouse.
04
HOA disclosure and dues
Arizona law requires the association to deliver a disclosure statement before closing. The dues count in the residual income test VA underwriting uses, and transfer fees are usually a buyer cost.
05
Escrow and dry funding
An escrow company closes the file and funds release after the deed records, normally the same morning. Keys come once escrow confirms recording, so closings are scheduled early.
06
Condos and new builds
A condo must be on the VA’s approved list before you can use the benefit on it. New construction, common across the West Valley and Pinal County, is fine for a VA loan once the builder’s warranty and inspections are in place; we coordinate with the builder’s title office.
What would a VA payment be in Arizona?
Choose VA as the loan type and set the down payment to zero. The mortgage insurance line stays at zero, which no other loan can match; add your county tax rate, insurance and HOA dues to see the whole payment.
The U.S. VA market right now.
National average rates from the Federal Reserve Bank of St. Louis FRED database: the Freddie Mac survey for conventional and the Optimal Blue indices for FHA and VA, shown as third-party market benchmarks, not MortgagePros pricing. VA loans often price competitively against conventional loans, depending on the borrower, lender and market, and there is no monthly mortgage insurance in the payment, so compare the whole payment rather than the rate alone.
VA 30-year fixed, U.S. average
7.09%
Conventional 30-year fixed, U.S. average
7.40%
FHA 30-year fixed, U.S. average
7.18%
Sources: Freddie Mac Primary Mortgage Market Survey (conventional, 30-year national average, week of Oct 8, 2026) and Optimal Blue Mortgage Market Indices (FHA and VA, 30-year national averages as of Oct 8, 2026), distributed through FRED, Federal Reserve Bank of St. Louis; the figures and dates refresh automatically from the source. These are third-party market benchmarks, not MortgagePros rates and not an offer of credit. Your rate and APR depend on your credit, loan type, property and lock date. MortgagePros is not affiliated with, endorsed by, or acting on behalf of the Department of Veterans Affairs or any government agency.
How a VA loan works with us in Arizona.
Four steps, one licensed pro who closes VA loans every week, and a closing through an Arizona escrow office near you.
1
Eligibility and the COE
We pull your Certificate of Eligibility, confirm your entitlement, and check whether you are exempt from the funding fee and qualify for the Proposition 130 exemption.
2
Pre-approval with real numbers
Income, credit and residual income verified, with Arizona taxes, insurance and HOA dues in the payment.
3
Property and association checks
Termite inspection ordered, HOA disclosure requested, condo approval confirmed, and likely appraisal items flagged, so the VA appraisal does not surprise anyone.
4
Close through escrow
Signing happens at an Arizona escrow office near you or with a mobile notary. Funds release when the deed records, usually the same morning; the funding fee, if any, is on the statement exactly as quoted.
Ready to use your VA benefit in Arizona?
An Arizona-licensed pro confirms your eligibility, your funding fee and any exemption, and quotes your rate with taxes and HOA dues in the numbers. Free, and it starts without a hard credit pull.
VA in Arizona, answered.
The questions Arizona veterans ask us most. If yours is not here, a licensed pro will answer it directly, with no obligation.
Is there a VA loan limit in Arizona?
Not if you have full entitlement: the VA guarantees a quarter of any loan amount a lender will approve, so a $900,000 home in Paradise Valley can be financed with nothing down. If part of your entitlement is tied up in another home you still own, the county conforming limit of $832,750 applies to the remainder and a down payment may be needed; we work it out from your Certificate of Eligibility.
How much is the funding fee, and can I avoid it?
2.15 percent of the loan on first use with nothing down, 3.3 percent on later uses, 1.5 percent with 5 percent down and 1.25 percent with 10 percent down; 0.5 percent on an IRRRL. It is waived if you receive VA disability compensation, are eligible for it but take retirement pay instead, received a Purple Heart on active duty, or are a surviving spouse receiving DIC. It is usually financed into the loan.
What is the Proposition 130 property tax exemption?
Arizona voters restored the veteran exemption in 2022. A veteran with a VA disability rating, service-connected or not, receives an exemption from assessed value in proportion to the rating, a set amount of assessed value that the state adjusts each year, and from tax year 2026 a veteran rated 100 percent service-connected has the home fully exempt from property tax, with the exemption continuing for an unremarried surviving spouse. Apply with your county assessor after closing.
Are there any Arizona taxes on a VA loan?
No. Arizona has no transfer tax and no tax on recording a mortgage, only a flat county recording fee. That keeps VA closing costs down.
Do I have to come to Michigan?
No. Your licensed pro handles everything by phone, email and e-signature, pulls your Certificate of Eligibility for you, and the closing runs through an Arizona escrow office near you or with a mobile notary.
Talk to a Arizona-licensed pro about VA loans.
Tell us what you are looking to do and where in Arizona. A licensed pro will call back, usually the same business day. Asking does not start a loan or require a hard credit pull.
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