Loan types, points, buydowns, and down payment help — the plain-English version of the money conversation.
| Loan | Typical Minimum Down | Best For |
|---|---|---|
| Conventional | 3–5% (first-time) / 5%+ | Solid credit; mortgage insurance drops off at 20% equity. |
| FHA | 3.5% | Thinner credit or higher debt ratios; insurance premiums run for most or all of the loan. |
| VA | 0% | Eligible service members, veterans, and surviving spouses — no down payment, no monthly mortgage insurance. |
| Jumbo | 10–20% | Loan amounts above the conforming limit — common at Scottsdale, Paradise Valley, and Cave Creek price points. |
The rate sets your payment; the APR folds in lender fees so you can compare offers honestly. Discount points are prepaid interest — one point costs 1% of the loan and buys the rate down permanently, which pays off if you keep the loan past break-even. A temporary buydown (like a 2-1) lowers the payment for the first year or two, and in slower stretches sellers will sometimes fund one as a concession — often worth more to you than the equivalent price cut.
Arizona buyers have access to down payment assistance through state and county programs — Home in Five Advantage in Maricopa County is a well-known example — plus lender-specific grants. Programs open, close, and change terms frequently, so treat any list you read online as a starting point and let your lender confirm what's live today.
