If you’re a first-time homebuyer in Arizona, one of your biggest questions is probably:
“How much money do I need to save before I can actually buy a home?”
The short answer? It depends. But the good news is that buying your first home in Arizona is often more affordable than you think—especially if you qualify for down payment assistance.
In this post, we’ll break down the real costs of buying a home in Arizona, including the down payment, closing costs, inspections, and ways to reduce what you need out of pocket.
What’s the Minimum Down Payment?
Your down payment depends on the loan type you use. Here’s a quick overview of common programs available to Arizona buyers:
Loan Type Minimum Down Payment
FHA Loan 3.5%
Conventional 3% – 5%
VA Loan 0%
USDA Loan 0%
Example:
For a $350,000 home in Phoenix or Mesa:
FHA: $12,250
Conventional (3%): $10,500
VA or USDA: $0
What Are Closing Costs in Arizona?
In addition to your down payment, you’ll also need to cover closing costs. These usually range from 2% to 5% of the purchase price and include:
Escrow and title fees
Appraisal and credit report
Lender origination fees
Prepaid property taxes and homeowners insurance
Typical range for a $350,000 home: $7,000–$17,500
Most first-time buyers in Arizona pay around $10,000 to $12,000.
Tip: Many sellers are willing to cover part of your closing costs if negotiated as part of your offer.
Earnest Money Deposit
When you make an offer on a home, you’ll usually include an earnest money deposit. This shows the seller you’re serious and is typically about 1% of the purchase price.
On a $350,000 home, that’s around $3,000 to $3,500. This money is credited back to you at closing—it’s not an extra cost, but you’ll need it available early.
Inspection and Appraisal Costs
These are paid upfront before closing:
Home inspection: $350 – $500
Termite inspection: $75 – $125
Appraisal: $500 – $700
You’ll usually want at least $1,000 set aside for these services.
Can I Get Help With My Down Payment?
Absolutely. Arizona has several down payment assistance (DPA) programs designed specifically for first-time buyers.
These programs provide:
Grants (you don’t pay them back if you meet the terms)
Forgivable second mortgages (zero-interest loans that disappear after a few years)
Featured Program: EPM Empowered Grant
The EPM Empowered DPA offers either 2% or 3.5% of your loan amount in the form of a forgivable grant. If you stay in the home for three years, you won’t have to repay it. That’s enough to cover your entire down payment on an FHA loan—and in some cases, part of your closing costs too.
You can learn more about it here or join one of our free webinars to see if you qualify.
How to Reduce What You Need
If you’re tight on savings, here are a few options that may help:
Apply for down payment assistance or grants
Ask the seller to pay part of your closing costs
Choose a loan with a low down payment (FHA, VA, or conventional 3%)
Use gift funds from family
Ask your lender about a lender credit (trade a slightly higher rate for help with costs)
Final Thoughts
Buying your first home in Arizona doesn’t mean you need to have $30,000 saved up. With the right strategy and guidance, many of our clients buy with as little as $3,000–$5,000 out of pocket.
If you’re curious about your options or want to see what assistance you qualify for, we’re here to help.
Ready to Take the Next Step?
✅ Find out if you qualify for the EPM Empowered Grant
✅ Join our next homebuyer webinar
✅ Get connected with a loan advisor
Click here to get started ➜
