Most first time buyers budget for the down payment and get blindsided by everything else. The check you bring to escrow in Arizona is your down payment plus closing costs plus prepaid taxes and insurance, minus any credits, and the earnest money you already deposited counts toward it. On a $400,000 home that check can land anywhere from about $8,000 to more than $40,000 before credits. The loan you choose decides most of the gap.

This is one part of our first time home buyer guide for Arizona. Below is every piece of the check, with the source for each number. Everything was checked on October 26, 2026.

The cash to close formula

Cash to close is simple once you see the parts:

Down payment + closing costs + prepaids, minus seller credits, lender credits and any assistance. Earnest money you already deposited counts toward it.

Your Loan Estimate shows this number on page one, labeled "Estimated Cash to Close." Your Closing Disclosure, which your lender must give you at least three business days before closing per the CFPB, shows the final figure. Everything between those two documents is about shrinking it.

Part one: the down payment, by loan type

This is the biggest line, and it is the one you control most by choosing the loan. Here are the program minimums, with the math on a $400,000 example price. The example is an illustration, not a claim about what Arizona homes cost.

Sources: FHA down payment rules from HUD Handbook 4000.1 and the premium from HUD Mortgagee Letter 2023-05. Conventional minimums from Fannie Mae and Freddie Mac. VA fee from VA.gov. USDA fee from the USDA Rural Development fiscal year 2027 fee bulletin dated September 16, 2026.

Two things jump out. First, the 0.5 point gap between FHA and 3% conventional is $2,000 on this price, which is real money but rarely the deciding factor. The bigger difference is mortgage insurance over time, which we cover in FHA vs conventional in Arizona. Second, those upfront fees on FHA, VA and USDA can be rolled into the loan. They do not have to come out of your savings, though they do raise the balance.

If you are not sure which loan you fit, start with our pages on FHA loans in Arizona, conventional loans and VA loans. For a deeper look at the down payment alone, see how much down payment you need in Arizona.

Part two: closing costs, with real Arizona numbers

First American Title's Arizona homebuyer guide says closing costs usually run 2 to 6% of the home's price. On $400,000, that range is $8,000 to $24,000. Wide, because it depends on the loan, the lender's fees, the title company and what you negotiate.

Here are the specific Maricopa County examples First American publishes, on rates for transactions closed on or after April 1, 2024:

The same guide lists example lender and third party charges: an appraisal at $500 to $750 and a home inspection at $150 to $250. Treat those as examples from one title company's guide, not quotes. Your Loan Estimate is the only document that shows your actual fees, so ask for one from every lender you are considering and compare them on the same day.

Want the full line by line breakdown? Our post on closing costs when buying a house in Arizona goes item by item.

Three buyers, one $400,000 house

Put the two biggest pieces together and the loan choice becomes obvious on paper. Using First American's 2 to 6% closing cost range on a $400,000 price, before any seller or lender credit:

Now apply a seller credit. If the conventional buyer negotiates a 3% credit, the most Fannie Mae allows above 90% loan to value, that is $12,000 toward closing costs and prepaids. On a deal where costs land near the low end of the range, that can cover most of them, which is why the negotiation matters as much as the loan. These ranges are math on a published range, not a quote. Your Loan Estimate is the real number.

Notice what the table does not show: the monthly payment. The VA buyer writes the smallest check, but the funding fee rides in the loan. The FHA buyer carries mortgage insurance. The conventional buyer pays PMI until it can be removed. Cash to close is half the decision. The payment is the other half, and our guide to PMI in Arizona covers the conventional side.

Part three: prepaids and the escrow account

Prepaids are not fees. They are your own future bills, paid early. At closing you typically prepay the first year of homeowners insurance and fund an escrow account that your lender uses to pay property taxes and insurance going forward. How much you put into escrow depends on your closing date and where your county is in its tax billing cycle.

We are not going to give you a single prepaid number, because it depends on your insurance quote, your county and your closing date. Get an insurance quote early, since Arizona premiums have moved, and ask your lender to show the prepaid section of your Loan Estimate line by line.

Run your own numbers

Part four: earnest money is not extra

Earnest money is the deposit you make with escrow after your offer is accepted. It shows the seller you are serious. It is not an additional cost. At closing it is credited toward your down payment and closing costs, so it comes off the final check.

The amount is whatever you and the seller agree to in the purchase contract. Just remember it has to be liquid and documented, since it leaves your account early. Our guide to earnest money in Arizona covers how much to offer and when you get it back if the deal falls apart.

Five ways to shrink the check

1. Ask the seller for a credit. On a conventional loan, Fannie Mae's Selling Guide (B3-4.1-02, dated May 7, 2025) caps interested party contributions at 3% of the price above 90% loan to value, 6% from 75.01% to 90%, and 9% at 75% or less. A credit can never exceed your actual closing costs and prepaids. In a market where Valley sellers are negotiating, this is the cleanest lever you have.
2. Take a lender credit. A slightly higher rate in exchange for a credit toward costs. It makes sense if you expect to refinance or move, and less sense for a 30 year hold. See how lender credits work.
3. Use gift funds. Family money can cover the down payment on most loans if it is documented the right way. Read our guide to gift funds for a down payment before anyone sends a wire.
4. Finance the upfront fee. On FHA, VA and USDA, rolling the upfront premium or fee into the loan keeps it out of your cash to close.
5. Choose a lower down payment loan. The difference between 5% and 3% down on $400,000 is $8,000 of cash you keep, at the cost of a larger loan.

What about down payment assistance?

Down payment assistance is the option people ask about first and the one I am most careful with. Blake's take: DPA usually carries a higher rate, so your monthly payment is often higher than a traditional loan. That is my guidance from pricing these loans side by side, not a statistic.

The official sources say why. The Arizona IDA's HOME Plus page says its mortgage rates "may be slightly higher than current industry rates." The assistance, up to 4% of the first mortgage, is a second lien that is forgiven after 60 months and must be repaid if you sell or refinance before then. You save cash once and can pay more every month. We break down that trade in the real cost of down payment assistance in Arizona, and every Arizona program is listed on our down payment assistance page.

Do not spend it all at closing

The goal is not the smallest possible check. It is a check you can write and still have money left. Some loans require reserves, months of payments sitting in your account after closing, and every homeowner needs a cushion for the first broken thing. Our post on mortgage reserves explains when lenders require them.

Once you know your number, browse homes for sale across the Valley in the price range that leaves that cushion intact. And if you have not started yet, our list of what a first time buyer should do first puts this step in order.

How we help

As a broker we can price FHA, conventional, VA and USDA on the same home and show you the down payment, closing costs and payment for each before you write an offer. See our loan programs, how pre approval works, and our process. Our average close is 18 days, and as fast as 10. More at pillarmortgagegroup.com.

Sources

Every figure in this post comes from the source named next to it. All sources were checked on October 26, 2026. Pillar Mortgage Group facts (average close, office hours, licensing) come from Pillar Mortgage Group.

1. First American Title, Homebuyer's guide to closing costs in Arizona (rates on transactions closed on or after April 1, 2024): info.firstam.com
2. HUD, Single Family Housing Policy Handbook 4000.1: www.hud.gov
3. HUD Mortgagee Letter 2023-05, FHA mortgage insurance premiums: www.hud.gov
4. VA, Funding fee and closing costs: www.va.gov
5. USDA Rural Development bulletin, FY 2027 guarantee fees, September 16, 2026: content.govdelivery.com
6. USDA Rural Development, Single Family Housing Guaranteed Loan Program: www.rd.usda.gov
7. Fannie Mae Selling Guide B3-4.1-02, Interested Party Contributions, May 7, 2025 (cited by name)
8. Fannie Mae and Freddie Mac, 97% LTV, HomeReady and Home Possible program pages (cited by name)
9. Arizona IDA, HOME Plus Down Payment Assistance: homeplusaz.com
10. CFPB, What is a Closing Disclosure?: www.consumerfinance.gov

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