Mortgage lender closing cost rankings in Arizona (2025)

Arizona is a non-judicial foreclosure state that primarily uses deeds of trust rather than mortgages, allowing lenders to foreclose through a trustee sale process without court involvement. The standard trustee sale process requires a minimum 91-day notice period from the recording of a notice of trustee's sale. Arizona is not an attorney-closing state; closings are typically handled by title companies or escrow officers, not attorneys. The state imposes a real property transfer tax, though Arizona is notable for having no statewide deed transfer tax — county and municipal conveyance fees may apply at the local level. Title insurance in Arizona operates under a file-and-use rate system, meaning insurers file rates with the Department of Insurance before use. Arizona prohibits prepayment penalties on most residential mortgage loans. The Arizona Department of Insurance and Financial Institutions oversees mortgage licensing and consumer complaints, and the state maintains additional consumer protections through its Anti-Deficiency Statute, which can limit lender recourse on certain purchase-money loans secured by owner-occupied residential properties of 2.5 acres or less.

Conventional loans dominate Arizona's purchase market, accounting for 59.3% of 2024 originations (46,386 loans) at a median rate of 6.625%. FHA loans represent a notably large share at 27.8% (21,745 loans), reflecting Arizona's affordability pressures and the state's high concentration of first-time and lower-down-payment buyers in fast-growing metros like Phoenix and Tucson. VA loans make up 12.3% of volume (9,611 loans), supported by a significant active-duty and veteran population tied to installations including Luke Air Force Base and Fort Huachuca. USDA loans are minimal at 0.6% (479 loans), consistent with Arizona's predominantly urban and suburban geography leaving little eligible rural acreage.