Closing Costs When Buying a House in Arizona: 2026 Guide
Home Buying
Closing Costs When Buying a House in Arizona: 2026 Buyer's Guide
Closing costs are not one fee. They are four buckets, and each one has a different lever. Here is what Maricopa County buyers actually pay and how to cut it.
The short answer
Arizona buyers pay closing costs in four buckets: lender fees, third party services such as title and escrow, prepaid taxes and insurance, and loan specific charges like FHA mortgage insurance or the VA funding fee. In Maricopa County, First American lists an escrow fee of about $1,624 and a lender's title policy of about $1,365 on a $500,000 purchase, with escrow usually split between buyer and seller. Sellers can pay part of your costs, up to limits set by each loan type.
Closing costs are the one time charges to make your loan and transfer the house. They sit on top of your down payment, and together the two make your cash to close. Most of the confusion comes from treating closing costs as one number. They are really four groups of charges, each with its own way to shrink it. This guide walks through each group with Maricopa County figures from the title company that publishes them, then shows how seller credits and lender credits reduce what you bring. For the bigger picture of buying your first home, see our Arizona first time home buyer guide.
The four buckets of closing costs
| Bucket | What is in it | Your lever |
|---|---|---|
| Lender charges | Origination or underwriting fees, and discount points if you buy the rate down | Compare Loan Estimates; a broker compares wholesale lenders for you |
| Third party services | Appraisal, credit report, title insurance, escrow fee, recording | Some are negotiable in the contract; some are set by the provider |
| Prepaids and escrow deposits | Homeowners insurance premium, property tax, daily interest to month end, starting balance for your escrow account | Closing date and insurance shopping; these are your own costs paid early |
| Loan specific charges | FHA upfront mortgage insurance, VA funding fee, USDA guarantee fee | Usually financed into the loan; some buyers are exempt |
The Consumer Financial Protection Bureau requires your lender to send a Loan Estimate within three business days of receiving your application, and the final numbers arrive on a Closing Disclosure at least three business days before you close, per the CFPB. Our post on the Closing Disclosure 3 day rule explains what can still change in that window.
Title and escrow costs in Maricopa County
Title and escrow are usually the largest third party line. First American Title publishes Maricopa County figures for transactions closed on or after April 1, 2024:
| Purchase price | Escrow fee, sale with a mortgage | Lender's title policy | Owner's title policy |
|---|---|---|---|
| $250,000 | About $1,274 | About $916 | About $1,549 |
| $500,000 | About $1,624 | About $1,365 | About $2,310 |
First American notes that the buyer and seller typically split the escrow fee, the buyer most often pays the lender's policy, and the owner's policy is negotiated in the contract. In other words, on a $500,000 purchase with a split escrow fee, a buyer's share of these three lines can run from about $2,177 to about $4,487 depending on who pays the owner's policy. Those figures are First American's estimates, not a complete fee schedule, and other title companies price differently.
The down payment is the number everyone plans for. The closing costs are where buyers get surprised.
Loan specific charges by program
Government loans add a charge that conventional loans do not, although it is usually financed rather than paid in cash. FHA charges an upfront mortgage insurance premium of 1.75% of the base loan under HUD Mortgagee Letter 2023-05. VA charges a funding fee of 2.15% on a first use purchase with less than 5% down, and veterans receiving compensation for a service connected disability are exempt, per VA. USDA charges a 1.00% upfront guarantee fee for fiscal year 2027, per USDA Rural Development. Conventional loans with less than 20% down use monthly private mortgage insurance instead, explained in our PMI cost guide.
Run your own numbers
Arizona mortgage calculator
- Principal and interest$2,983
- Property tax (est. 0.51%)$191
- Homeowners insurance (est.)$183
- Mortgage insurance$199
- Loan amount$434,250
Estimates only, not a quote or a commitment to lend. Property tax uses Arizona's average effective rate and varies by county and assessment. Insurance is an estimate and Arizona premiums have been rising. HOA dues are not included. Your actual rate depends on credit, loan to value, occupancy, and program.
Want these numbers to be real instead of estimated? We will price your exact scenario across every lender we work with.
Get my real numbersSeller credits and lender credits
Sellers can pay part of your closing costs, up to a cap set by your loan type. The caps are percentages of the price:
| Loan type | Most the seller can contribute | Source |
|---|---|---|
| Conventional, primary home | 3% above 90% loan to value; 6% from 75.01% to 90%; 9% at 75% or less | Fannie Mae Selling Guide B3-4.1-02, May 7, 2025 |
| FHA | 6% of the sales price | HUD Handbook 4000.1 |
| VA | No limit on closing cost credits; concessions capped at 4% of reasonable value | VA funding fee and closing costs page |
With more than one in four Phoenix metro listings showing a price cut in August 2026 according to Realtor.com, asking for a credit is a normal part of an offer. A credit can pay closing costs or buy the rate down, and our guide to seller paid rate buydowns shows when the rate is the better use. A lender credit is the other route: you accept a slightly higher rate and the lender covers costs. Our post on lender credits runs the break even.
Want your real cash to close? Send the price, your down payment and the loan you are leaning toward. We will build the full estimate and show where a credit helps most.
Build my estimate Book a 15 minute callHow to compare closing cost quotes
Compare Loan Estimates for the same loan type on the same day, because rates and credits move daily. Look at Section A, origination charges, first; it is the part a lender controls. Then compare the rate and any points together, since a lower fee with a higher rate can cost more over time. Our guide on comparing mortgage Loan Estimates walks through it line by line, and our mortgage rates and fees page shows how we price.
How to lower your closing costs
Ask for a seller credit in your offer. Shop homeowners insurance, since a full year is paid at closing; our Arizona homeowners insurance guide covers what drives the premium. Close near the end of the month to reduce prepaid daily interest, which lowers cash to close but not total cost. Weigh FHA and conventional, since FHA's upfront premium is financed and conventional's is not charged; our FHA vs conventional comparison and our FHA loans in Arizona page cover the trade. Wire your funds only after confirming instructions by phone with your title company at a number you looked up yourself.
Blake's take on down payment assistance: it usually comes with a higher interest rate, so the monthly payment is often higher than a traditional loan would be. I would rather see a first time buyer use FHA at 3.5% down, a conventional 97, HomeReady or Home Possible at 3% down, or VA and USDA at 0% down, and keep the payment lower. If you still want to look at it, our Arizona down payment assistance guide lays out the current programs, the rules, and what they actually cost.
Your earnest money is part of the picture too, and it usually gets credited back at closing; see how earnest money works in Arizona. If you are still choosing a house, browse listings on Arizona Luxury Property Search, and check how much house you can afford so the cash and the payment both fit.
Honest caveat: title and escrow figures are First American's published estimates for Maricopa County and are not a full fee schedule. Prepaids depend on your closing date, tax bill and insurance quote. Loan program rules change. This is general education, not a commitment to lend. See our process or all loan programs.
Sources (each last verified October 26, 2026)
- First American Title, Homebuyer's Guide to Closing Costs in Arizona, Maricopa County, rates effective April 1, 2024
- CFPB, What is a Loan Estimate; CFPB, What is a Closing Disclosure
- HUD Mortgagee Letter 2023-05 (1.75% upfront premium); HUD Handbook 4000.1 (6% interested party contribution limit)
- VA, Funding fee and closing costs (2.15% first use under 5% down; 4% concession cap)
- USDA Rural Development, Fiscal Year 2027 Conditional Commitment Notice, September 16, 2026 (1.00% upfront, 0.35% annual)
- Fannie Mae Selling Guide B3-4.1-02, Interested Party Contributions, May 7, 2025
- Realtor.com Monthly Housing Trends, Phoenix metro share of listings with a price cut 27.6%, August 2026
Frequently asked questions
How much are title and escrow fees in Maricopa County?
First American lists an escrow fee of about $1,274 on a $250,000 sale and about $1,624 on $500,000 with a mortgage, and a lender's title policy of about $916 and $1,365. Those rates apply to transactions closed on or after April 1, 2024.
Who pays closing costs in Arizona, the buyer or the seller?
Both have costs. First American notes the escrow fee is typically split, the buyer most often pays the lender's title policy, and the owner's policy is negotiated. Sellers can also credit part of the buyer's costs up to the limit for the loan type.
How much can a seller pay toward my closing costs?
On a conventional primary home loan, 3% above 90% loan to value, 6% from 75.01% to 90% and 9% at 75% or less per Fannie Mae B3-4.1-02. FHA allows 6%. VA sets no limit on closing cost credits but caps concessions at 4% of reasonable value.
When will I see my closing costs?
The lender must send a Loan Estimate within three business days of your application, and a Closing Disclosure at least three business days before closing, according to the CFPB.
Can I roll closing costs into my loan on a purchase?
Not directly on most purchase loans. Loan specific charges such as FHA upfront mortgage insurance and the VA funding fee are usually financed, while other costs are covered with cash, seller credits or a lender credit.
What is the FHA upfront mortgage insurance premium?
It is 1.75% of the base loan amount under HUD Mortgagee Letter 2023-05, and it is usually financed into the loan rather than paid at closing.
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Pillar Mortgage Group, LLC is a licensed mortgage brokerage based in Scottsdale, AZ. Company NMLS# 2700076 | Arizona License MB-2009671 | Equal Housing Lender.
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This content is for informational and educational purposes only and does not constitute financial, legal, or tax advice. Mortgage rates, loan programs, and market conditions are subject to change without notice. Not a commitment to lend. All loans subject to credit approval. Third-party market data sourced from publicly available information. Pillar Mortgage Group conducts business in accordance with the Fair Housing Act and the Equal Credit Opportunity Act.
