Veterans Direct Mortgage

$0 Down · No PMI · Veteran-Owned

VA Loans in Arizona

Arizona is home to nearly half a million veterans and four major installations — Luke Air Force Base in the West Valley, Davis-Monthan in Tucson, Fort Huachuca in Sierra Vista, and MCAS Yuma. Add year-round sun and no-nonsense cost of living outside metro Phoenix, and Arizona is one of the most popular VA-loan states in the West.

473K

Arizona Veterans

4

Military Installations

$0

Down Payment

$832,750

2026 Baseline Limit

Why Arizona

A VA team that knows Arizona’s military markets

Phoenix's West Valley — Glendale, Peoria, Surprise — grew up around Luke AFB's F-35 mission, and VA buyers compete well here because sellers know VA offers close. In Tucson and Sierra Vista, prices sit below the national median, so full entitlement easily covers the market.

Luke AFB trains every F-35 pilot in the Air Force, keeping the West Valley in constant PCS rotation. Davis-Monthan's A-10 and rescue missions anchor south Tucson, Fort Huachuca runs Army intelligence and NETCOM from Sierra Vista, and MCAS Yuma hosts Marine aviation's premier training ranges. Each installation supports a distinct housing market with steady military demand.

Beyond the Loan

More Arizona benefits you earned

The VA loan is one piece of what Arizona owes its veterans. Here’s the rest of the stack — worth real money every year:

Income Tax

Military retirement untaxed

Arizona fully exempts military retirement pay from state income tax.

Vehicle

Veteran & DV plates

Veteran and disabled-veteran plates available; vehicle license tax exemption for qualifying 100% disabled veterans.

Education

Tuition waiver

Tuition waivers at state universities and community colleges for Purple Heart recipients and certain disabled veterans.

Recreation

Hunting & fishing

Complimentary licenses for qualifying 100% disabled resident veterans.

Benefit rules and amounts change with each legislative session — confirm current details with the Arizona Department of Veterans' Services. When you work with us, we walk through which of these apply to your purchase and your budget.

Official VA Data

Arizona VA lending, by the numbers

16,871

VA Loans Closed (FY2025)

$7.0B

VA Dollars Guaranteed (FY2025)

$417K

Average VA Loan

473,375

Veterans in AZ

Arizona veterans closed 16,871 VA loans in fiscal year 2025 9,949 of them home purchases — and the VA paid $3.5 billion in disability compensation and pension to Arizona veterans in FY2024. Every veteran receiving that compensation is exempt from the VA funding fee.

Sources: VA Loan Guaranty loans-by-state report, FY2025 · VetPop2023 state projections (NCVAS) · VA Geographic Distribution of Expenditures, FY2024.

Bases We Serve

Military installations in Arizona

Every installation below anchors a housing market our team lends in — PCS moves, first purchases on BAH, and buy-then-rent strategies included.

2026 BAH Rates

Compare BAH across Arizona’s installations

BAH is set per housing area, not per state — and it counts as qualifying income on a VA loan. Here’s how Arizona’s duty stations compare at key pay grades.

InstallationE-4E-5E-6E-7O-3
Luke Air Force Base$2,061$2,289$2,457$2,475$2,490
Davis-Monthan Air Force Base$1,695$1,905$2,121$2,145$2,199
Fort Huachuca$1,569$1,719$2,193$2,217$2,232
MCAS Yuma$1,551$1,695$1,845$1,917$2,049

2026 monthly BAH, with dependents, from official DoD (DTMO) rate data. Click any installation for all 24 pay grades, without-dependents rates, and a payment-vs-BAH estimator for that housing area.

2026 Program Facts

What the VA loan gets you in Arizona

$0 Down Payment

Buy with no down payment on loans within your entitlement — the signature VA benefit.

No PMI

VA loans never charge monthly private mortgage insurance, keeping payments lower than FHA or low-down conventional.

Competitive Rates

The VA guaranty lets lenders price VA loans below comparable conventional rates for most borrowers.

Flexible Credit

The VA sets no minimum credit score — guidelines focus on residual income and the whole picture.

Limited Closing Costs

The VA restricts which fees veterans can be charged, and sellers may pay all of them plus concessions.

Reusable for Life

VA entitlement is a lifetime benefit — it can be restored and reused, and you can hold more than one VA loan at once.

VA loan vs. conventional in Arizona

FeatureVA LoanConventional
Down payment$0 required3–20% (20% to avoid PMI)
Monthly mortgage insuranceNeverRequired under 20% down
Minimum credit scoreNone set by VATypically 620+
Interest ratesTypically below conventionalHigher without large down payment
Upfront feeFunding fee 2.15% first use (waived with disability rating)None
Prepayment penaltyNeverRare, but possible
Loan limitNone with full entitlement$832,750 baseline (2026)
Assumable by a buyerYes — VA loans are assumableGenerally not

2026 VA loan limits in Arizona

With full entitlement, the VA does not cap your loan amount — county loan limits only apply when you have reduced entitlement (an existing VA loan or a prior default). For reduced-entitlement borrowers, the 2026 baseline county limit is $832,750, and designated high-cost counties range up to $1,873,675.

The VA funding fee, plainly

  • First use, under 5% down: 2.15%
  • Subsequent use, under 5% down: 3.30%
  • With 5% down: 1.50% · with 10% down: 1.25%
  • Streamline refinance (IRRRL): 0.50%

Veterans receiving VA disability compensation at any rating are fully exempt from the funding fee, as are eligible surviving spouses and Purple Heart recipients on active duty.

Where We Lend

Arizona cities we serve

From base-gate communities to the metros veterans choose after service, these are the Arizona markets where our VA lending is most active.

  • Phoenix~$410K
  • Glendale~$407K
  • Peoria~$486K
  • Surprise~$420K
  • Tucson~$326K
  • Sierra Vista~$303K
  • Yuma~$298K
  • Mesa~$435K

Typical home values: Zillow Home Value Index, 2026-06.

Straight Answers

Arizona VA loan questions, answered

Is there a VA loan limit in Arizona?

Not with full entitlement. With reduced entitlement, every Arizona county uses the 2026 baseline limit of $832,750 — comfortably above the typical Phoenix, Tucson, or Yuma purchase price.

Can I buy near Luke AFB with $0 down?

Yes — Glendale, Peoria, Surprise, and Buckeye are all standard VA territory. The West Valley's inventory of newer single-family homes is exactly what the VA appraisal process handles smoothly.

Is Sierra Vista a good VA loan market?

One of the best in the state. Fort Huachuca dominates the local economy, prices are well below the national median, and a large share of Sierra Vista sales close on VA financing, so agents and sellers know the process.

Can I use my VA loan on a home with a pool in Arizona?

Absolutely. Pools are standard in Arizona and are fine under VA appraisal rules as long as the property meets the VA's Minimum Property Requirements.

Does the Arizona heat affect VA appraisals?

No, but the VA's Minimum Property Requirements do require functioning cooling appropriate to the climate — a dead HVAC unit in an Arizona summer will be flagged for repair before closing.

Ready When You Are

Start your Arizona VA loan with a team that’s worn the uniform

Get a clear pre-approval, honest numbers, and a VA process handled by people who understand PCS timelines and military life firsthand.