VA Loans in Arizona 2026: Zero Down for Veterans
Loan Programs
VA Loans Arizona 2026: Zero Down for Veterans & Active Military
If you served, the VA loan is usually the best loan you will ever qualify for. Here is who is eligible, what it costs in 2026, and how to use it in the Valley.
The short answer
A VA loan lets eligible veterans, service members, some National Guard and Reserve members, and some surviving spouses buy a primary home in Arizona with 0% down and no monthly mortgage insurance. With full entitlement there is no VA loan limit. Most first use buyers with less than 5% down pay a 2.15% funding fee, usually financed, and veterans receiving VA disability compensation pay none. VA sets no minimum credit score; lenders set their own.
The VA home loan is a benefit earned through service, guaranteed by the U.S. Department of Veterans Affairs and made by private lenders. In most cases it beats every other loan a borrower qualifies for: no down payment, no monthly mortgage insurance, and seller paid closing costs allowed. This guide covers eligibility, 2026 entitlement and loan limits, the funding fee, qualifying, and the steps to closing. Our VA loans in Arizona page covers how we handle VA files, and our Arizona first time home buyer guide covers the whole first purchase.
What you get with a VA loan
According to VA, a VA purchase loan offers no down payment as long as the sales price is not higher than the appraised value, no private mortgage insurance or mortgage insurance premium, and fewer closing costs, which the seller may pay. You can buy a single family home or a property of up to four units, or a condo in a VA approved project, as long as you live in it. Investment properties do not qualify.
No monthly mortgage insurance is the quiet advantage. On FHA, most buyers pay an annual premium of 0.50% to 0.55% under HUD Mortgagee Letter 2023-05; on a conventional loan with less than 20% down, private mortgage insurance applies. Our PMI cost guide shows what that adds per month.
Who is eligible
| Status | Service generally required |
|---|---|
| Veteran, Gulf War era (August 2, 1990 to present) | 24 continuous months, or the full period called to active duty of at least 90 days |
| Active duty service member | 90 continuous days |
| National Guard | 90 days of non training Title 10 active duty, or 6 creditable years, among other paths |
| Reserve | 90 days of non training active duty, or 6 creditable years in the Selected Reserve |
| Surviving spouse | Receiving certain Dependency and Indemnity Compensation, or spouse of a service member missing in action or a prisoner of war |
These are summarized from VA eligibility rules, which list other service periods and note that a discharge for a service connected disability can qualify with less time. You prove eligibility with a Certificate of Eligibility, which you can request online or your lender can request for you.
Loan limits and entitlement in 2026
With full entitlement, VA does not cap your loan amount; per VA, bonus entitlement usually covers 25% of the amount a lender is willing to lend. Your lender still has to approve the amount on income and credit. If you have remaining rather than full entitlement, for example because a prior VA loan is still open, the county loan limit comes into play. VA uses FHFA's one unit conforming limit, which is $832,750 in every Arizona county for 2026 per the Federal Housing Finance Agency. Above what your entitlement covers, a lender may require a down payment.
With full entitlement, the limit on a VA loan is what you qualify for, not a county number.
The VA funding fee in 2026
| Down payment | First use | After first use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% or more | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
Those rates have applied since April 7, 2023, per VA. You do not pay the fee if you receive VA compensation for a service connected disability, are eligible for it but receive retirement or active duty pay instead, are a surviving spouse receiving Dependency and Indemnity Compensation, have a proposed or memorandum rating before closing, or are an active duty member who received the Purple Heart. On a $450,000 home with 0% down and a first use fee of 2.15%, the fee is $9,675, usually added to the loan.
Run your own numbers
Arizona mortgage calculator
- Principal and interest$3,091
- Property tax (est. 0.51%)$191
- Homeowners insurance (est.)$183
- Mortgage insurance$206
- Loan amount$450,000
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 numbersCredit, debt and residual income
VA does not set a minimum credit score; lenders set their own floors, which is why one lender may say no where another says yes. VA's lender handbook, Chapter 4 uses a 41% debt to income ratio as a benchmark and weighs residual income, the money left each month after major expenses, alongside it. Strong residual income can support a ratio above 41%. Our guides to the credit score you need to buy in Arizona and to debt to income limits cover both in more depth.
Closing costs can be covered by the seller. VA sets no limit on seller credits for closing costs, but caps seller concessions such as paying off debts or prepaying insurance at 4% of the home's reasonable value. Our closing costs guide explains what those cover.
Using your VA benefit? We will request your Certificate of Eligibility, confirm whether you owe the funding fee, and price VA against every alternative so you see the real difference.
Start my VA file Book a 15 minute callSteps to closing on a VA loan in Arizona
- Get your Certificate of Eligibility. Request it on VA.gov or have your lender request it.
- Get pre-approved. Send income, asset and credit documents; our pre-approval guide lists them.
- Write an offer that fits VA. Ask for seller credits within VA's rules and plan for the VA appraisal, which values the home and checks VA's minimum property requirements.
- Clear underwriting. Keep your finances steady and answer conditions quickly; read what not to do before closing.
- Close. Review your Closing Disclosure three business days before signing, per the CFPB, and our post on the Closing Disclosure 3 day rule explains what can still change.
Not eligible for VA? FHA at 3.5% down is the usual next option; compare our FHA loans in Arizona page and our FHA vs conventional guide. Already have a VA loan and rates fall later? Read about the VA streamline refinance. Browse homes on Arizona Luxury Property Search once your COE and pre-approval are in hand.
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.
Honest caveat: VA eligibility, entitlement and fee rules are set by VA and can change, and lenders add their own credit and debt requirements. Confirm your COE and funding fee status before you rely on any figure here. This is general education, not a commitment to lend. See our loan programs or our process.
Sources (each last verified October 26, 2026)
- VA, VA purchase loan (no down payment, no PMI, up to 4 units, occupancy)
- VA, Eligibility for VA home loan programs
- VA, VA home loan limits (full and remaining entitlement)
- VA, Funding fee and closing costs (fees effective April 7, 2023; exemptions; 4% concession cap)
- VA Lender Handbook, Chapter 4, Credit Underwriting
- FHFA, Conforming Loan Limit Values for 2026 ($832,750)
- HUD Mortgagee Letter 2023-05 (FHA annual premium comparison)
Frequently asked questions
Is there a VA loan limit in Arizona in 2026?
Not with full entitlement. VA says bonus entitlement usually covers 25% of what a lender will lend. With remaining entitlement, VA uses the FHFA one unit conforming limit, $832,750 in every Arizona county for 2026, to figure what your entitlement covers.
How much is the VA funding fee?
For a first use purchase with less than 5% down, 2.15% of the loan; 3.3% after first use. With 5% down it is 1.5%, and with 10% down 1.25%, per VA rates effective April 7, 2023.
Who does not have to pay the VA funding fee?
Veterans receiving VA compensation for a service connected disability, those eligible for it but receiving retirement or active duty pay, surviving spouses receiving Dependency and Indemnity Compensation, members with a qualifying proposed or memorandum rating before closing, and active duty Purple Heart recipients.
What credit score do I need for a VA loan?
VA does not set a minimum score. Lenders set their own floors and weigh residual income and debt to income, so a broker who can reach several lenders matters for lower scores.
Can I buy a duplex or fourplex with a VA loan?
Yes. VA allows a property of up to four units as long as you live in it as your primary home. Investment properties you will not occupy do not qualify.
Can sellers pay my closing costs on a VA loan?
Yes. VA sets no limit on seller credits toward closing costs, but caps seller concessions at 4% of the home's reasonable value.
Why Pillar Mortgage Group
A brokerage, not a bank. That difference is the whole point.
We are a brokerage. We price your file across every wholesale lender we work with and bring you the one that wins, instead of selling you the only product on the shelf.
Self employed, 1099, investor, trust, recent job change. The files other lenders decline are the ones we do all day. DSCR, bank statement, Non QM, jumbo.
You get Blake's actual phone number. Not a call center, not a queue, not a portal that tells you to wait for an update that never comes.
If waiting is smarter than closing, we say so. We would rather tell you in week one that this needs six months than sell you a loan you should not take.
Want your actual numbers,
not a general answer?
Tell us what you are working on. We will shop every lender we work with and send you real numbers for your situation. No application, no credit pull, no obligation.
Already know what you want?
Apply Now Full application, about 12 minutes. Takes you straight into underwriting.You are in.
We got it. Expect to hear from us shortly. If you would rather lock in a time right now, grab a slot below.
Pick a timeAbout Pillar Mortgage Group
Pillar Mortgage Group, LLC is a licensed mortgage brokerage based in Scottsdale, AZ. Company NMLS# 2700076 | Arizona License MB-2009671 | Equal Housing Lender.
9089 E Bahia Dr 101A, Scottsdale, AZ 85260
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.
