Best Mortgage Lenders in Tucson, AZ

How to choose a mortgage lender in Tucson

Understanding the market is key to finding the best time to refinance or purchase a new home. Some facts to know about Tucson’s current housing market include:

• Strong economic growth is increasing the demand for homes
• Houses in Tucson stay on the market for an average of 59 days
• Homes are moving quickly in Tucson, which demonstrates a stable market
• There is a low real estate inventory, meaning there are fewer homes to meet the housing demands

The median price of homes in Tucson is $185,000, but the high demand for houses will cause the price to increase during the next few years. If you’re planning to buy a home in the city, purchasing one before prices rise even more is a good idea.

Types of mortgage loans available in Tucson

There are multiple types of mortgages in Tucson, including:

• Conventional loans are the most common type of loan and may require higher credit scores and larger down payments than other options. Conventional loans can either be fixed-rate or variable-rate loans.
• FHA loans are backed by the Federal Housing Administration. Homebuyers with lower credit scores may qualify for these loans, but the loan does require mortgage insurance.
• FHA 203(k) loans are intended for use on homes that require renovation. They allow you to put the purchase and renovation cost of your home into one loan.
• HUD loans are backed by the Department of Housing and Urban Development and can be a good option for Tucson residents with lower incomes.
• VA loans are low-cost loans that have no down payment. They’re offered to veterans, members of the armed forces and surviving spouses by the Department of Veterans Affairs.
• USDA loans are offered by the U.S. Department of Agriculture and are available for homes in rural areas. They have no down payment and are often more affordable than other types of loans.
• Jumbo loans are designed for financing that exceed the limits set by the Federal Housing Finance Agency and are used for luxury properties and homes.

Your credit history, available down payment and other factors will help decide which loan type works best for you. Your mortgage company will discuss your options and help you choose.

Choosing a neighborhood in Tucson

Tucson has a variety of neighborhoods offering different features and amenities. Factors such as the local school system, crime rate, restaurants and nightlife, shopping and access to parks are important to consider. Three of the most popular neighborhoods in Tucson are:

• Sam Hughes, a central Tucson neighborhood, has turn-of-the-century houses and mission-style bungalows. It’s within walking distance of shops, restaurants and parks. It’s also close to the University of Arizona and Downtown Tucson. Houses range in price from $200,000 to $1.5 million. Conventional and jumbo mortgages work well for this neighborhood.
• El Encanto, sometimes called the Beverly Hills of Tucson, has a California-inspired landscape and layout, including Moroccan-, Spanish-, Italian- and Mediterranean-style houses. Houses begin at $500,000. FHA loans may work for some homes in this area, though you may need a jumbo loan for more expensive properties.
• Civano, a newer, environmentally-friendly neighborhood, attracts younger families with energy-efficient adobe and Sonoran-style homes. The median house price in this neighborhood is $248,300. Many people living in this neighborhood are military families working at the nearby Davis–Monthan Air Force Base who can use a VA loan. Other families may be able to use an FHA loan.