Arizona VA Home Loans

The VA Loan Limits for Tucson

As of 2025, the VA loan limit in Tucson, Arizona—located in Pima County—is $806,500 for a one-unit residential property. This figure reflects the baseline conforming loan limit set by the Federal Housing Finance Agency (FHFA), which applies to the majority of U.S. counties. Keep in mind, VA loan limits are not a ceiling on how much a qualified veteran can borrow. Rather, they represent the threshold up to which eligible borrowers can secure financing without needing a down payment, assuming full VA loan entitlement.

For borrowers with only partial entitlement—such as those who have another active VA loan or defaulted on a previous one—the limit is used to calculate any required down payment.

To qualify for a VA home loan in Arizona in 2025, applicants must meet several eligibility criteria related to military service, financial standing, and the property being purchased.

VA loan eligibility is primarily based on military service history. You may be eligible if you meet one of the following:

• Active-Duty Service Members: Must have completed at least 90 continuous days of service.
• Veterans: Must have served a minimum period based on when they were in the military.
• National Guard or Reserve Members: Must have served at least six years or have been activated for at least 90 days.
• Surviving Spouses: Unmarried spouses of service members who died either in service or due to a service-related condition could be eligible.

To prove eligibility, applicants need a Certificate of Eligibility (COE), which can be obtained through the VA, a lender, or by submitting the proper forms or signing into your VA.gov account.

Do I Need a Down Payment for a VA Loan in Tucson?

In most cases, you do not need a down payment to purchase a home with a VA loan in Tucson. One of the biggest advantages of a VA home loan is that it allows eligible veterans, active-duty service members, and certain surviving spouses to finance 100% of the home’s purchase price—meaning no money down is typically required.

This benefit is available to borrowers who have full VA loan entitlement. As long as the loan amount falls within the local limit—which is $806,500 in Pima County for 2025—no down payment is needed.

However, there are a few exceptions where a down payment might be necessary:

• Partial Entitlement: If you’ve used part of your VA entitlement already (for example, if you still have an active VA loan or had a foreclosure on a previous one), you may need to put some money down depending on how much entitlement you have left.

• Home Price Exceeds the Loan Limit: If you’re buying a home priced above the $806,500 threshold, you may be required to cover the difference with a down payment.

• Appraised Value is Lower Than the Purchase Price: If the home appraises for less than the agreed purchase price, the VA will only guarantee the appraised value, and you may need to pay the difference out of pocket.

Keep in mind that while a down payment usually isn’t required, you may still be responsible for other costs such as closing expenses and the VA funding fee—unless you qualify for an exemption due to a service-related disability.

To get a clear understanding of what’s required for your specific situation, it’s a good idea to speak with a VA-approved mortgage specialist in Tucson.

What Debt-to-Income Ratio Do I Need for a VA Loan in Arizona?

When applying for a VA loan in Arizona, most lenders prefer to see a debt-to-income (DTI) ratio of 41% or lower. This means that your total monthly debt obligations—including your expected mortgage payment, car loans, credit cards, student loans, and any other recurring debts—should not exceed 41% of your gross monthly income.

That said, the 41% guideline isn’t a hard cutoff. Many borrowers are approved with higher DTI ratios, especially if they have other strong financial factors working in their favor. These are called “compensating factors” and can include:

• A history of making payments on time

• A higher-than-average amount of residual income left over each month

• Steady and reliable employment or income sources

• Cash reserves or a larger down payment (even though VA loans don’t typically require one)

Lenders assess the full financial picture, not just your DTI. So even if your ratio is slightly above the recommended level, you may still qualify depending on your overall credit profile and income stability.

Since every financial situation is unique, it’s best to speak directly with a VA loan expert or mortgage lender to understand how your specific DTI impacts your eligibility.

Can I Get a VA Loan in Arizona With Bad Credit?

Yes, it’s possible to qualify for a VA loan in Arizona even if you have less-than-perfect credit. The Department of Veterans Affairs does not set a minimum credit score requirement, which means approval is largely up to the individual lenders.

Most lenders prefer a credit score of around 620 or higher, but some are willing to work with borrowers who have scores in the low 600s—or even lower in certain cases. Approval with a lower credit score often depends on other financial strengths you may have.

Lenders will take a broad look at your overall financial picture. If you have consistent, stable income, manageable monthly debts, and a history of paying bills on time, these factors can help offset a lower credit score. Some lenders may also consider things like cash reserves or a strong employment history as positive indicators.

If your credit needs improvement, taking time to pay off debts, avoid late payments, and limit new credit inquiries can improve your chances of approval. Some lenders even offer credit coaching or guidance to help you become loan-ready.

If you’re concerned about your credit, it’s a good idea to speak with a VA loan specialist who can review your unique situation and help you explore your options