Data checked against official sources: October 21, 2026
Arizona VA Loan Data 2026: Limits, Residual Income, Tax Breaks and Loan Counts
Every number an Arizona veteran, agent or reporter needs for a VA purchase in one place: 2026 county loan limits, VA’s residual income guidelines for Arizona, the state’s property tax and income tax breaks for veterans, and how many VA loans Arizona closed this year, with the official source behind each figure.
Arizona VA loans at a glance
No limit
VA loan limit with full entitlement (loans closed since Jan 1, 2020)
$832,750
2026 county limit in all 15 Arizona counties (partial entitlement only)
20,607
VA loans in Arizona in FY2026, up from 16,871 in FY2025
$1,117
monthly residual income guideline, family of 4, loan $80,000+
100% exempt
primary-home property tax for 100% service-connected veterans (2026)
$0
Arizona income tax on military retired pay (since 2021)
2026 VA loan limits by Arizona county
With full VA entitlement there is no loan limit: the Blue Water Navy Vietnam Veterans Act of 2019 removed it for loans closed on or after January 1, 2020. County limits only apply when you have remaining (partial) entitlement, for example while a previous VA loan is still open. VA uses the FHFA conforming limits, and the one-unit limit applies even to a 2-4 unit home. No Arizona county is a high-cost area, so all 15 share the national baseline.
| County | 2026 limit (one unit) | Applies to |
|---|---|---|
| Apache County | $832,750 | Remaining (partial) entitlement only |
| Cochise County | $832,750 | Remaining (partial) entitlement only |
| Coconino County | $832,750 | Remaining (partial) entitlement only |
| Gila County | $832,750 | Remaining (partial) entitlement only |
| Graham County | $832,750 | Remaining (partial) entitlement only |
| Greenlee County | $832,750 | Remaining (partial) entitlement only |
| La Paz County | $832,750 | Remaining (partial) entitlement only |
| Maricopa County | $832,750 | Remaining (partial) entitlement only |
| Mohave County | $832,750 | Remaining (partial) entitlement only |
| Navajo County | $832,750 | Remaining (partial) entitlement only |
| Pima County | $832,750 | Remaining (partial) entitlement only |
| Pinal County | $832,750 | Remaining (partial) entitlement only |
| Santa Cruz County | $832,750 | Remaining (partial) entitlement only |
| Yavapai County | $832,750 | Remaining (partial) entitlement only |
| Yuma County | $832,750 | Remaining (partial) entitlement only |
With partial entitlement, VA’s guaranty is figured from 25% of the county limit minus entitlement that is still in use; a lender may then ask for a down payment on the portion above it. Your Certificate of Eligibility shows what you have.
VA residual income guidelines for Arizona (West region)
Residual income is what is left each month after the new housing payment, other debts, taxes and maintenance. VA sets minimums by region and family size; Arizona is in the West region with Alaska, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington and Wyoming.
| Family size | Loan $79,999 and below | Loan $80,000 and above |
|---|---|---|
| 1 | $425 | $491 |
| 2 | $713 | $823 |
| 3 | $859 | $990 |
| 4 | $967 | $1,117 |
| 5 | $1,004 | $1,158 |
| Each member over 5 (up to 7) | +$75 | +$80 |
Monthly amounts, VA Pamphlet 26-7, Chapter 4. VA allows a reduction of at least 5% when the borrower or spouse is an active-duty or retired servicemember who will clearly keep using the facilities of a nearby military base (38 CFR 36.4340).
Arizona property tax exemption for disabled veterans (2026)
- 100% service-connected rating: the primary residence is fully exempt for tax years after 2025 (Laws 2026, Ch. 2, HB 2792). A surviving spouse keeps the exemption while not remarried.
- Lower ratings: the exemption equals $4,873 times your VA disability percentage, and it comes off the home’s assessed (limited) value, not off the tax bill. An 80% rating, for example, takes $3,898 off assessed value.
- Household income limits (2026): $39,865 with no minor children, or $47,826 with minor or disabled children, per the Maricopa, Pima and Coconino assessor forms.
- How to apply: with your county assessor, generally from the first Monday in January to March 1 (A.R.S. 42-11153). Maricopa County lists February 28, or September 1 with a waiver.
- Coming in 2027: Laws 2026, Ch. 140 (HB 4168) adds total disability based on individual unemployability (TDIU) to the full exemption and drops the income cap for veterans and their surviving spouses, starting with tax year 2027.
Rules on what counts toward the income test vary by county; confirm your situation with your county assessor before you file.
Arizona income tax on military pay
- Military retired pay can be fully subtracted from Arizona income since tax year 2021 (Arizona Department of Revenue; A.R.S. 43-1022).
- Active-duty military pay has not been subject to Arizona income tax since 2006.
- VA disability compensation is not federally taxable (IRS Publication 525), and Arizona income tax starts from federal adjusted gross income.
Who doesn’t pay the VA funding fee
You are exempt from the VA funding fee if any of these apply:
- You receive VA compensation for a service-connected disability.
- You are eligible for that compensation but receive retirement or active-duty pay instead.
- You are a surviving spouse receiving Dependency and Indemnity Compensation (DIC).
- You are a servicemember with a proposed or memorandum rating, issued before closing, saying you are eligible for compensation based on a pre-discharge claim.
- You are on active duty and show proof of a Purple Heart on or before closing.
How many VA loans Arizona closes
| VA fiscal year | Total | Purchase | IRRRL | Cash-out |
|---|---|---|---|---|
| FY2025 | 16,871 | 9,949 | 4,011 | 2,911 |
| FY2026 | 20,607 | 10,499 | 6,838 | 3,270 |
VA loan volume by state. FY2026 is 22% above FY2025 (our calculation from VA’s figures).
Military installations in Arizona
| Installation | Nearest city / location |
|---|---|
| Fort Huachuca | Sierra Vista (Cochise County) |
| Luke Air Force Base | Glendale (West Valley) |
| Davis-Monthan Air Force Base | Tucson, about 7 miles southeast of downtown |
| Marine Corps Air Station Yuma | Yuma |
| Yuma Proving Ground | About 24 miles north of Yuma |
| Gila Bend Air Force Auxiliary Field | 4 miles south of Gila Bend |
| Camp Navajo | Bellemont, 12 miles west of Flagstaff |
| Morris Air National Guard Base (162nd Wing) | Tucson International Airport |
| 161st Air Refueling Wing | Phoenix Sky Harbor |
State help for Arizona veterans buying a home
- HOME Plus works with VA loans. Arizona’s statewide down payment assistance (Arizona Industrial Development Authority) is a forgivable second lien that can be paired with a VA first mortgage. You don’t have to be a first-time buyer; it requires a 620 minimum credit score, homebuyer education, and household income under $155,386 (all counties, as of April 6, 2026). See our guide to using down payment assistance with a VA loan.
- Free benefits counselors. The Arizona Department of Veterans’ Services has VA-accredited counselors at 602-535-1215.
Use this data
Reporters, agents and veteran organizations are welcome to cite or reuse these tables. Please credit and link the source:
Source: Arizona VA Loan Data 2026, VA Home Loan Pros (vahomeloanpros.com/arizona-va-loan-data). Tanner Cook, NMLS #2090424.
Licensed CC BY 4.0: free to reuse with attribution.
Sources (checked October 21, 2026)
- FHFA: 2026 conforming loan limits by county
- FHFA news release, November 25, 2025
- VA.gov: VA home loan limits
- VA Circular 26-19-30 (Blue Water Navy Vietnam Veterans Act of 2019)
- VA Pamphlet 26-7, Chapter 4 (residual income tables)
- Arizona Laws 2026, Ch. 2 (HB 2792)
- Arizona Laws 2026, Ch. 140 (HB 4168)
- Maricopa County Assessor: 2026 personal exemption form
- Pima County Assessor: veteran exemption application
- Coconino County: property tax relief programs
- A.R.S. 42-11153 (exemption filing period)
- Arizona Department of Revenue: other taxable income (military retired pay)
- Arizona Department of Revenue: military tax filing
- IRS Publication 525 (VA disability benefits)
- 38 CFR 36.4340 (VA underwriting standards, residual income)
- VA.gov: funding fee and closing costs
- VA: loan volume by state
- Arizona Department of Veterans’ Services: benefits counselors
- Arizona IDA: HOME Plus program summary for lenders (June 2026)
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Frequently asked questions
What is the VA loan limit in Arizona for 2026?
If you have full VA entitlement, there is no VA loan limit: the cap was removed for loans closed on or after January 1, 2020. The county limit only matters if you have remaining (partial) entitlement, for example because a VA loan is still open. For 2026 every Arizona county uses the same one-unit limit, $832,750.
How much residual income does a VA loan require in Arizona?
Arizona is in VA’s West region. For a loan of $80,000 or more, the monthly residual income guideline is $491 for one person, $823 for two, $990 for three, $1,117 for four and $1,158 for five, plus $80 for each additional member (up to seven). Lenders compare your residual income with these guidelines as part of underwriting.
Do disabled veterans pay property tax in Arizona?
For tax year 2026, a veteran with a 100% service-connected disability rating has a full exemption on the primary residence (Laws 2026, Ch. 2). Veterans with lower ratings get an exemption of $4,873 times their disability percentage, taken off the home’s assessed value, subject to household income limits. You apply with your county assessor, generally between the first Monday in January and March 1.
Does Arizona tax military retirement pay?
No. Since tax year 2021 Arizona lets you subtract all military retired pay, and active-duty pay has not been taxed since 2006. VA disability compensation is not federally taxable, and Arizona income tax starts from federal adjusted gross income.
How many VA loans are made in Arizona?
VA reports 20,607 VA-guaranteed loans in Arizona for fiscal year 2026 (10,499 purchases, 6,838 IRRRL refinances and 3,270 cash-out refinances), up from 16,871 in fiscal year 2025.
Buying in Arizona with your VA benefit?
We check your entitlement, residual income and any assistance you qualify for before you make an offer.
Who is licensed to make this loan in Arizona
- Arizona: Mortgage Brokers License 0910407, held by Cornerstone First Mortgage, LLC (NMLS #173855).
- Your loan officers are Tanner Cook (NMLS #2090424) and Zac Cook (NMLS #2111496). Licenses can be checked on NMLS Consumer Access; our disclosures page lists the other states.
General information compiled from the official sources listed above; not tax or legal advice and not a loan offer. Program rules and limits change; confirm your eligibility with VA, your county assessor or a tax professional.