Tucson’s housing market is growing, and so is the demand for homes in the area. Buying a home in Tucson is a significant financial commitment, and it’s vital that you work with a reputable mortgage company. A good mortgage lender will have an easy application and help advise you during the homebuying process. Our partners at ConsumerAffairs reviewed the best mortgage lenders in Tucson to help you buy your dream home.
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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.
AmeriSave is focused on helping people make their dream of buying a home a reality. The lender has mortgage loans for purchasing a new home or refinancing your existing loan and offers online rate quotes without requiring personal information. Tucson residents report the online application is simple and straightforward.
HomeDirect, a division of BOK Financial, is dedicated to making the financing process convenient for all its customers. The direct lender has an automated online application and uses technology to make the homebuying process easier. Tucson customers praise the friendly, experienced mortgage bankers who provide advice every step of the way.
The Polder Group
The Polder Group’s mission is to help families finance homes where they can create memories and share stories. They are committed to delivering the best lending experience in Tucson. They offer conventional, FHA, USDA, VA and jumbo mortgage options. Customers in Tucson love the caring nature of the loan officers.
Nova Home Loans
Nova Home Loans is a full-service mortgage bank that handles loans in-house from start to finish and advertises an accelerated loan delivery. The company offers mortgages including VA, jumbo, USDA and FHA loans. Reviews from Tucson rave about the easy process, low rates and knowledgeable staff.
Our partners independently research and analyze the companies mentioned in our guides and work with subject matter experts to add valuable information that helps consumers make smart purchase decisions. Our partners will not include companies on these guides that do not meet specific quality standards. The compensation we receive from our partners may impact how and where companies appear on our site, including the order in which they appear.
Our partners independently research companies, and use editorial discretion to award companies with special recognition (i.e. Best Value) based on their staff’s judgement or subject matter expert’s judgement. Our partners do this to help you identify companies that will meet your specific buying needs, and do not receive compensation for these designations.