Most Tucson buyers need far less than 20% down. On a $375,000 home, the minimum is $0 with a VA or USDA loan, $11,250 (3%) with a conventional loan, or $13,125 (3.5%) with FHA. Plan on another 2% to 5% for closing costs. Pima County assistance programs can cover part or even all of that cash for buyers who qualify.
"How much do I need to save?" is the question I hear more than any other. It's also the one that keeps more people renting than anything else, mostly because of one old rule: that you need 20% down to buy a house. You don't. Here's what it really takes to buy in Tucson, Marana, Oro Valley, and Vail in 2026, in real dollars.
The NumbersMinimum Down Payment by Loan Type
Your loan type sets your minimum. Here's what each one asks for on a $375,000 home, which is right around what a typical Tucson home has been selling for this fall.
| Loan type | Minimum down | On $375,000 | Good fit for |
|---|---|---|---|
| VA | 0% | $0 | Veterans, active duty, and eligible spouses. Big in Tucson thanks to Davis-Monthan AFB. |
| USDA | 0% | $0 | Moderate-income buyers in eligible areas outside the city core. |
| Conventional | 3% | $11,250 | First-time buyers with solid credit. Mortgage insurance can come off later. |
| FHA | 3.5% | $13,125 | Buyers rebuilding credit. Scores from 580 can qualify at 3.5% down. |
| Conventional | 20% | $75,000 | Buyers who want no mortgage insurance and the lowest payment. |
Conventional 3% programs are generally for first-time buyers or buyers under certain income limits. Everyone else usually starts at 5%. USDA eligibility depends on the address and household income.
Do You Really Need 20% Down?
No. Twenty percent is the point where conventional loans stop charging private mortgage insurance (PMI). It is not a requirement to buy. Nationally, most first-time buyers put down well under 20%, and plenty of Southern Arizona buyers put down nothing at all with VA loans.
What you trade for a smaller down payment is a somewhat higher monthly payment:
- Conventional under 20%: you pay PMI, but it can be removed once you reach 20% equity, and it drops off automatically at 22%.
- FHA: there's an upfront mortgage insurance premium of 1.75% (usually rolled into the loan) plus a monthly premium. With less than 10% down, it stays for the life of the loan unless you refinance later.
- VA: no monthly mortgage insurance. There is a one-time funding fee, and veterans with a service-connected disability rating are generally exempt.
Moose's take: Run the math on waiting. If it takes you five more years to save 20%, you're paying five more years of rent and buying at whatever prices are then. For a lot of Tucson buyers, getting in sooner with less down and dropping PMI later comes out ahead. Your lender can show you both paths side by side.
Your Real Number: Cash to Close
The down payment is only part of what you'll bring to closing. Here's the full picture:
Earnest Money
A good-faith deposit when your offer is accepted, often around 1% of the price in Tucson. It isn't an extra cost: it counts toward your down payment and closing costs.
Closing Costs
Lender fees, title insurance, escrow, prepaid taxes and insurance. A common rule of thumb is 2% to 5% of the price, or about $7,500 to $18,750 on a $375,000 home.
Inspection and Appraisal
Usually paid out of pocket during escrow. Budget a few hundred dollars for the inspection, more for a pool or a larger home.
Seller Concessions
In many negotiations, the seller agrees to pay part of your closing costs. That depends on the home and the market, and it's one of the first things we look at when writing an offer.
So a first-time buyer using FHA on a $375,000 home might need around $20,000 to $30,000 all in before any help. That's before the assistance programs below, which can shrink it a lot.
Local HelpDown Payment Help in Pima County
This is where Tucson buyers have an edge. Pima County and the City of Tucson both run programs that can cover a big piece of your cash to close. Terms change often, so treat these as a starting point and confirm the current details with a participating lender.
Pima Tucson Homebuyer's Solution
- A forgivable second loan that can cover up to all of your cash to close
- Works with FHA, VA, USDA and conventional loans
- 640 minimum credit score; income limits apply
- You don't have to be a first-time buyer
- A homebuyer education course is required
Run by the Pima County IDA.
Down Payment Assistance Program
- Up to $50,000 or 20% of the price, whichever is less
- For households at or below 80% of area median income
- You contribute at least $1,000 of your own funds
- HUD-approved homebuyer counseling required
Details from the City of Tucson.
Mortgage Credit Certificate (MCC): This one doesn't lower your down payment, but it puts money back in your pocket every year. First-time buyers who qualify get a federal tax credit equal to 20% of the mortgage interest they pay. Pima County's income and price limits are on the Pima IDA site, and it can be combined with the Homebuyer's Solution.
One thing to know: the statewide "Arizona Is Home" program covers every county except Maricopa and Pima. If you're buying in Pima County, the local programs above are your options.
Your Game PlanHow to Figure Out Your Number
- Pick a price range. Start with a monthly payment you're comfortable with, not the most a lender will approve.
- Get pre-approved early. A lender will tell you which loan types you qualify for and what your actual minimum is. It costs nothing to ask.
- Ask about assistance up front. Not every lender offers the Pima County programs. Ask before you apply.
- Add closing costs and a cushion. Down payment plus 2% to 5% for closing, plus a few thousand in reserve for move-in and surprises.
- Talk to an agent before you shop. We can tell you which neighborhoods fit your number and how to write offers that ask the seller to help with costs.
Down Payment Questions We Hear Most
How much do I need to put down on a $300,000 house?
The minimum is $0 with VA or USDA, $9,000 with a 3% conventional loan, or $10,500 with FHA at 3.5%. Twenty percent would be $60,000. Add closing costs of roughly 2% to 5% of the price on top.
Can I buy a house in Tucson with no money down?
Yes. VA loans and USDA loans in eligible areas allow 0% down. Other buyers can sometimes get close to zero out of pocket by pairing an FHA or conventional loan with the Pima Tucson Homebuyer's Solution and seller-paid closing costs.
What credit score do I need?
FHA allows 3.5% down with a score of 580 or higher. Most conventional loans start around 620, and the Pima Tucson Homebuyer's Solution requires at least 640. Individual lenders can set higher minimums.
Can family help with my down payment?
Usually, yes. FHA, VA and conventional loans all allow gift funds from family. Your lender will ask for a gift letter and a paper trail showing where the money came from, so don't move cash around without asking first.
Is it better to put 20% down?
Not always. Twenty percent removes PMI and lowers your payment, but it also ties up cash you might need for reserves, repairs or furniture. Many buyers put down less, keep a cushion, and drop PMI once they reach 20% equity.
Does earnest money count toward my down payment?
Yes. Your earnest money deposit is credited toward your down payment and closing costs at closing. It's money you would have spent anyway, just paid earlier.
Find Your Number
Tell us your price range and we'll connect you with a lender who knows the Pima County programs, then show you what that budget buys in Tucson, Marana, Oro Valley, and Vail.
Talk With Our TeamThis article is for general information and education only. It is not legal, tax, lending, or financial advice, and it is not an offer or commitment to lend. The Big Rock Realty Group is not a lender and is not affiliated with the Pima County IDA, the City of Tucson, or any government agency. Loan guidelines, assistance programs, income limits, and funding change often and are subject to qualification and availability. Information is believed reliable but is not guaranteed. Verify all figures with a licensed loan officer, tax professional, or attorney before making decisions. You use this information at your own risk, and the Big Rock Realty Group, its agents, and Keller Williams Southern Arizona are not liable for decisions made in reliance on it. Links to outside websites are provided for convenience; we are not responsible for their content. You are free to choose any lender. Example figures use a $375,000 purchase price for illustration only. Illustrations are AI-generated.
The Big Rock Realty Group is a team at Keller Williams Southern Arizona, 1730 E River Rd Ste 200, Tucson, AZ 85718. Each office is independently owned and operated. Equal Housing Opportunity. Not intended to solicit buyers or sellers currently under contract with another brokerage.
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