Current Status: AZFA mortgage rates for 2025 are typically 0.25-0.50% below standard market rates. Actual rates vary based on credit score, loan program, and market conditions. Contact us for today's exact rates: 480-330-1724
Arizona Housing Finance Authority (AZFA) provides below-market interest rates through their mortgage revenue bond program. Understanding current AZFA rates, how they compare to conventional rates, and which programs are available helps you make informed financing decisions.
Why AZFA Rates Are Lower
AZFA obtains funding through tax-exempt mortgage revenue bonds, which allow them to offer below-market rates to qualified Arizona home buyers. This means you get a lower interest rate compared to traditional financing, saving thousands over the life of your loan.
These savings are passed directly to borrowers who meet AZFA eligibility requirements, making homeownership more affordable for working Arizona families.
AZFA vs Market Rates: Current Comparison
⚠️ Important Rate Disclosure
Mortgage rates change daily based on market conditions. The rates shown below are typical ranges and examples. Contact us for today's exact AZFA rates based on your specific situation: Call 480-330-1724 or email [email protected]
AZFA Program Rates (Typical)
30-year fixed | Credit 680+ | APR 6.125%
30-year fixed | Credit 700+ | APR 6.025%
30-year fixed | Veterans | APR 5.875%
✓ Below market rates
✓ Down payment assistance available
✓ Must meet AZFA eligibility
Standard Market Rates (Typical)
30-year fixed | Credit 680+ | APR 6.625%
30-year fixed | Credit 700+ | APR 6.525%
30-year fixed | Veterans | APR 6.375%
✓ No income limits
✓ No down payment assistance
✓ Standard processing
The AZFA Rate Advantage: Real Savings
0.5%
Average Rate Difference
$125
Average Monthly Savings
$45,000
Total 30-Year Savings
Example: On a $350,000 loan, the 0.5% AZFA rate advantage saves approximately $125/month and $45,000 over 30 years compared to standard market rates.
Current AZFA Programs for 2025
AZFA Home Plus
Most Popular Program | Statewide Availability
First Mortgage Features
- • Below-market interest rates (0.25-0.50% lower)
- • Can be combined with FHA, VA, USDA, or Conventional
- • Fixed-rate 30-year terms
- • Competitive closing costs
Optional Down Payment Assistance
- • 3% of first mortgage amount
- • Maximum $15,000
- • 10-year repayment term
- • Interest rate: First mortgage rate + 1%
- • Monthly payment required
Best For: Buyers who need down payment assistance and want below-market rates statewide
AZFA Home in Five Advantage
Forgivable Assistance | Targeted Areas Only
First Mortgage Features
- • Below-market interest rates
- • Can be combined with FHA, VA, USDA, or Conventional
- • Fixed-rate 30-year terms
- • Same great rates as Home Plus
Forgivable Down Payment Assistance
- • 5% of purchase price
- • 0% interest rate (no interest charged!)
- • NO monthly payment required
- • 20% forgiven annually over 5 years
- • Fully forgiven after 5 years in home
Best For: Buyers purchasing in AZFA targeted areas who want maximum assistance with no monthly DPA payment
Which Program Should You Choose?
Your choice depends on property location and preferences:
- • Home in Five Advantage: Better if your property is in a targeted area (0% interest, forgiveness, no monthly payment)
- • Home Plus: Available anywhere in Arizona, provides 3% assistance with monthly payment requirement
- • Both programs: Offer the same below-market first mortgage rates
AZFA Rate Locks and How Rates Are Set
How AZFA Sets Rates
AZFA mortgage rates are determined by the bond market and adjust based on demand for AZFA mortgage revenue bonds. When bond investor demand is high, AZFA can offer lower rates. Rates are typically updated weekly but can change daily during volatile market periods.
Rate Lock Periods Available
- 30-Day Lock: Standard for most purchases
- 45-Day Lock: For slightly longer closings
- 60-Day Lock: For new construction or complex transactions
- 90-Day Lock: Available with additional cost
Rate Lock Benefits
- ✓ Protection from rate increases
- ✓ Locked rate guaranteed through closing
- ✓ Can extend lock if closing delayed (fee applies)
- ✓ Some lenders offer float-down if rates improve
When to Lock Your AZFA Rate
At Pre-Approval
Lock early if rates are favorable and you're ready to shop
After Offer Acceptance
Most common - lock within 24-48 hours of accepted offer
Market Timing
Lock when rates are low; wait if expecting rates to drop
Factors That Affect Your AZFA Rate
Credit Score
Higher credit scores receive better rates:
- • 760+: Best rates
- • 700-759: Excellent rates
- • 680-699: Good rates
- • 640-679: Standard rates
Loan Type
Different loan types have different rate structures:
- • VA: Typically lowest
- • Conventional: Mid-range
- • FHA: Slightly higher
- • USDA: Competitive
Loan Amount
Loan size affects pricing:
- • $150k-$400k: Standard rates
- • Under $150k: Possible adjustment
- • Over $500k: Possible adjustment
Down Payment
More down payment can lower rates:
- • 3-5% down: Standard rates
- • 10-15% down: Possible discount
- • 20%+ down: Better rates
Property Type
Property characteristics matter:
- • Single-family: Best rates
- • Condo/Townhome: Standard
- • 2-4 unit: Adjustment
- • Manufactured: Case-by-case
Occupancy
How you'll use the property:
- • Primary residence: Best rates
- • Second home: Higher rate
- • Investment: Highest rate
- • AZFA requires primary occupancy
Get Today's AZFA Rates for Your Situation
Rates shown are examples. Your actual rate depends on credit, loan type, and other factors.
📞 Call for today's rates: 480-330-1724
📧 Email: [email protected]
Rates change daily - lock your rate when you find your home
Related AZFA Resources
AZFA Loans Overview
Complete guide to all AZFA programs
Down Payment Assistance
Get up to $15,000 in assistance
AZFA vs FHA Comparison
Which program is better for you?
How to Apply
Step-by-step application guide
Income Limits & Eligibility
2025 limits and requirements
Arizona Mortgage Rates
All current rate information