The Tucson housing value index compiled by Zillow is $325,520 as of June 30, 2026, which is a 2.2% decrease from a year ago. Due to the characteristics of the southern Arizona region, the increase was not as significant as in the Phoenix metro area, and thus the decrease has been relatively mild.

This raises the question of whether now is a good time to buy. It is difficult to determine the timing of a purchase based solely on the fact that prices are in a correction phase. For first-time homebuyers, the more pressing concern is whether the loan structure and monthly budget are actually manageable.

Starting with the types of loans, an FHA loan can begin with a 3.5% down payment if the credit score is 580 or higher, and if it is between 500 and 579, a 10% down payment is required. A conventional loan can start at 3% for first-time homebuyers or those with an area median income of 80% or less, with typical down payments around 5%. If the down payment is less than 20%, PMI (private mortgage insurance) will be added monthly, while it is waived for down payments of 20% or more.

So, what about interest rates? According to Freddie Mac PMMS, the average 30-year fixed rate as of July 2026 is 6.6%, fluctuating between 6.55% and 6.72%. Actual offered rates may vary slightly depending on the lender's credit score and DTI, so it is advisable to compare multiple options during the pre-approval stage.

What about property taxes? The average effective tax rate in Arizona is around 0.48%, which is lower than the national average. However, there are variations by county, so it is important to verify the tax rate based on the property address in Pima County. Throughout Arizona, there is a tax standard called Limited Property Value, which prevents property tax assessments from increasing more than 5% annually, even if home values surge. However, within that cap, values can continue to rise, so if you plan to hold long-term, it is wise to check the tax bill each year.

DTI, or debt-to-income ratio, is also worth considering. This is the ratio of monthly mortgage principal and interest payments, car loans, and credit card payments to pre-tax income, with most lenders setting a cap around 43%. In cases where the credit score is high or the down payment is substantial, higher ratios may be approved.

During the pre-approval stage, documentation such as recent income verification, W-2s, or tax returns, and bank statements will be required. When making an offer, it is common to deposit earnest money of about 1% to 3% of the purchase price, which will be applied to the down payment at closing if the contract proceeds without issues. Closing costs include items like appraisal, home inspection, title insurance, and escrow fees, and should be prepared at 2% to 5% of the loan amount. It is advisable to compare not only interest rates but also the points (discount points) and fee structures offered by different lenders. Even with the same 6.6% rate, whether to buy points to increase initial costs and lower the rate, or to accept the standard rate without points, depends on the expected duration of residence.

If coming up with a down payment is burdensome, consider the HOME+PLUS program. This program, available throughout Arizona, combines a 30-year fixed mortgage with down payment assistance ranging from 0% to 5%. After confirming eligibility for first-time homebuyers and income limits, applications can be made through a lender.

When considering school districts, it is advisable to refer to ratings from GreatSchools or Niche, but since school district boundaries change frequently, it is safer to verify the assigned school for the specific address before purchasing. For families moving from out of state, budgeting based on property taxes or insurance rates from the previous residence may lead to discrepancies with actual costs, so caution is needed. This article is not investment or legal advice, and it is recommended to consult with professionals before finalizing any contracts.