Can you buy a house in Arizona with no down payment? Sometimes—yes. The clearest true zero-down paths in public program documents are VA-backed purchase loans (for eligible Veterans, service members and certain surviving spouses) and USDA Section 502 guaranteed loans in eligible rural areas. Most of metro Scottsdale is not rural for USDA purposes—you verify by address on USDA’s eligibility map, not by city name alone.
What about “almost zero”? FHA is widely used but is a low down payment—3.5% minimum required investment in most cases, per HUD—not zero. Local programs such as Home in Five Advantage in Maricopa County can help with down payment and closing-cost assistance when you qualify, layered on an approved first mortgage.
Data note: Rules cited from VA.gov, USDA Rural Development, HUD’s FHA Myths vs Facts PDF, and Home in Five Advantage (site + DPA Guidelines effective June 10, 2026). Limits change—verify with a lender. Not mortgage, tax or legal advice.
Zero Down vs Low Down
- Zero down (program-based): VA (eligible; price ≤ appraisal); USDA guaranteed (eligible rural address)
- Low down: FHA at 3.5% minimum in most cases (HUD)—not zero
- Assistance layer: Home in Five Advantage in Maricopa County (often up to 6% of the first mortgage under current options)
- Still due at closing: prepaids, title/escrow shares, and fees such as the VA funding fee (unless exempt)
More: first-time home buyer programs in Arizona · closing costs for buyers in Arizona · assumable mortgage in Arizona
VA Purchase Loans: Zero Down When You Qualify
VA.gov states a VA-backed purchase loan often offers no down payment when the sales price is not higher than the appraised value, with no monthly PMI/MIP when you qualify. You need a Certificate of Eligibility (COE), must meet VA and lender standards, and must live in the home.
The funding fee is not a down payment—but it is a cost
Unless exempt, VA purchase loans include a one-time funding fee. Per VA.gov charts effective April 7, 2023, first-use rates are 2.15% (under 5% down), 1.5% (5%+), and 1.25% (10%+); after first use, under-5% down rises to 3.3% (5%+ and 10%+ match the first-use tiers). Exemptions include certain disability compensation, some DIC surviving spouses, qualifying pre-discharge ratings, and active-duty Purple Heart recipients. The fee can often be financed; other closing costs generally cannot. Sellers may pay some buyer costs; VA limits defined seller concessions to 4% of reasonable value.
USDA Guaranteed Loans: 100% Financing in Eligible Rural Areas
USDA’s Section 502 Guaranteed Loan helps approved lenders offer low- and moderate-income households 100% financing—the overview says “no money down for those who qualify.”
Applicants must meet income eligibility (cannot exceed 115% of median household income per the overview), occupy the home as a primary residence, and meet citizenship/qualified-alien rules. Loans are 30-year fixed only on this guaranteed program overview.
USDA eligibility is by property address on the agency’s Eligibility Site map—not by city name. Large portions of the Phoenix–Scottsdale metro area are not eligible rural areas. Outlying Arizona addresses may qualify when the map says yes.
FHA: 3.5% Minimum—Low, Not Zero
HUD’s FHA Myths vs Facts sheet says the minimum required investment is 3.5% in most cases, which may come from your funds, gifts, second mortgages, or grants/assistance when rules allow. If someone markets “FHA zero down,” ask what is stacked on top—the base minimum is still 3.5% unless another eligible source covers it.
Home in Five Advantage (Maricopa County)
Home in Five Advantage helps eligible buyers purchase in Maricopa County with down payment and closing-cost assistance plus a competitive-rate first loan through participating lenders.
Program-site highlights include minimum FICO 640, annual income up to $153,440 (as posted when fetched), DTI up to 50%, occupancy within 60 days, an 8-hour HUD-approved homebuyer education course, and a Maricopa County purchase (house, condo or townhouse; price not limited on the summary). The site markets assistance of up to 6%.
The Down Payment Assistance Guidelines effective June 10, 2026 describe second-loan options sized at 3%, 4%, 5% or 6% of the first mortgage (availability subject to market), with several term structures. Guideline income figures can differ from the homepage—confirm today’s matrix with an approved lender. This is an assistance layer, not a VA/USDA zero-down first mortgage by itself.
How to Choose a Path
Start with a COE if you may use VA. For possible rural purchases, check the USDA map by address. In the metro area, model FHA 3.5% and ask whether Home in Five can reduce cash to close. Read the Loan Estimate—zero down is not zero cash—and get pre-approved before you shop.
“Zero down is real for the right borrower and the right address—but ‘zero down’ never means ‘zero homework.’ I pair clients with lenders who know VA, USDA and Home in Five rules, then we look at cash to close on paper before we write offers. Clarity beats a viral social-media promise.”
— Elizabeth Vijan, Tackett Team, eXp Realty
Frequently Asked Questions
Can you buy a house in Arizona with no down payment?
Yes—notably via VA and USDA (eligible rural areas). Check eligibility before assuming a metro listing qualifies.
Is FHA a zero-down loan?
No. HUD cites 3.5% in most cases.
Does Home in Five cover a full down payment in Maricopa County?
It can provide assistance (often up to 6% of the first mortgage). Confirm today’s matrix with an approved lender.
Do VA loans have no closing costs?
No. A funding fee (unless exempt) and other costs may still apply.
Ready to Map Your Down-Payment Options?
I’ll help you shortlist programs and lenders who work these products—so your offer uses real numbers.
Elizabeth Vijan | Tackett Team, eXp Realty
Scottsdale & Phoenix Real Estate Specialist
Talk With Elizabeth · Call or text 602-885-7752
Sources: VA.gov: Purchase loan · VA.gov: Funding fee and closing costs · USDA RD: Single Family Housing Guaranteed Loan Program · HUD: FHA Myths vs Facts (PDF) · Home in Five Advantage · Home in Five DPA Guidelines (effective June 10, 2026) (PDF)
Disclaimer: General information only—not mortgage, tax or legal advice. Program rules, income limits and fees change; confirm with a licensed lender and the official agency. Information deemed reliable but not guaranteed. Equal Housing Opportunity.
Tackett Team, eXp Realty · Get in touch