In 2025, the Phoenix and Scottsdale real estate markets continue to captivate buyers seeking luxury properties. With median home prices exceeding conventional loan limits in some areas, jumbo loans have become essential for many prospective homeowners.
This comprehensive guide delves into the nuances of low down payment jumbo loans, highlighting options like 5% and 10% down, and explores the benefits of piggyback loans and VA jumbo loans for veterans.
🏡 Phoenix & Scottsdale Real Estate Market Snapshot
📍 Phoenix, AZ
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Median Sale Price (mid 2025): $450,667
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Median List Price (mid 2025): $474,983
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Market Trend: Home values have declined slightly by 3.5% over the past year, indicating a cooling market.
📍 Scottsdale, AZ
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Median Sale Price (mid 2025): $849,417
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Median List Price (mid 2025): $970,800
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Market Trend: Home values have remained nearly flat over the past year.
🏘️ High-Cost Neighborhoods in Maricopa County
Several affluent neighborhoods in Phoenix and Scottsdale are ideal candidates for jumbo loans:
Phoenix
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Arcadia: Known for its historic charm and luxury estates.
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Biltmore: Features upscale homes and proximity to high-end shopping and dining.
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Desert Ridge: Offers modern amenities and spacious properties.
Scottsdale
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North Scottsdale: Home to expansive estates and golf course communities.
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Silverleaf: An exclusive, gated community with luxury homes.
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Paradise Valley: Renowned for its multimillion-dollar estates and scenic views.
These neighborhoods often have median home prices that necessitate jumbo financing.
💰 Understanding Jumbo Mortgages
A jumbo loan is a type of mortgage that exceeds the conforming loan limits set by the Fannie Mae. In Maricopa County, the conforming loan limit in 2025 for a single-family home is $806,500 . Any loan amount surpassing this threshold is classified as a jumbo loan.
Benefits of Jumbo Loans
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Higher Loan Amounts: Facilitate the purchase of high-value properties.
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Competitive Interest Rates: Often comparable to conventional loans.
- Low Down Payment Options: Often up to 95% financing.
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Flexible Terms: Tailored to meet the borrower’s financial situation
- Refinance Options: Flexible rate-term and cash-out refinance options available for existing homeowners
💸 Low Down Payment Jumbo Loan Options
Traditionally, jumbo loans require substantial down payments, often ranging from 20% -25%. However, some lenders in Phoenix offer low down payment options:
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5% Down Jumbo Loans: Available for loan amounts up to $2,000,000, requiring a minimum credit score of 700.
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10% Down Jumbo Loans: Commonly offered for loan amounts up to $3,000,000, with credit score requirements varying by loan amount.
These options make luxury homeownership more accessible to a broader range of buyers. Please read more details on jumbo loan qualifications here.
🏠 Piggyback Loans: 80/10/10 & 80/15/5 Structures
Piggyback loans involve taking out a second mortgage to cover part of the down payment, thereby reducing the primary mortgage amount and avoiding private mortgage insurance (PMI).
80/10/10 Piggyback Loan
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First Mortgage: 80% of the home’s value.
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Second Mortgage: 10% (often a home equity loan or line of credit).
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Down Payment: 10%.
This structure allows borrowers to finance 90% of the home’s value while avoiding PMI.
80/15/5 Piggyback Loan
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First Mortgage: 80%.
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Second Mortgage: 15%.
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Down Payment: 5%.
This arrangement is beneficial for buyers with limited down payment as it can reduce the interest rate on the primary first mortgage and eliminate the need for PMI. Though it requires a higher credit score and may involve higher interest rates on the second mortgage.
🎖️ VA Jumbo Loans for Veterans
Veterans and active-duty military personnel can leverage VA jumbo loans to purchase high-value homes without a down payment, provided they meet certain eligibility criteria.
Benefits of VA Jumbo Loans
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No Down Payment: Eligible borrowers can finance up to 100% of the home’s value, in many cases up to $2m loan amounts.
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Competitive Interest Rates: Often lower than conventional jumbo loans.
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No PMI: Eliminates the need for private mortgage insurance.
These advantages make VA jumbo loans an attractive option for qualifying veterans seeking luxury homes in the Phoenix and Scottsdale areas.
📊 Visual Guide: Jumbo Loan Breakdown
| Loan Type | Max Loan Amount | Down Payment | Credit Score | Eligible Properties |
|---|---|---|---|---|
| 5% Down Jumbo Loan | Up to $2M | 5% | 700+ | Primary residences |
| 10% Down Jumbo Loan | Up to $3M | 10% | Varies | Primary residences |
| 80/10/10 Piggyback | Up to $3M | 10% | 700+ | Primary residences |
| 80/15/5 Piggyback | Up to $1.5M | 5% | 700+ | Primary residences |
| VA Jumbo Loan | $2m | $0 | 620+ | Primary residences |
📍*Note, Vets with a small down payment can often be approved for even higher loan amounts exceeding $2m, depending on qualifications and remaining VA entitlement.
Navigating the luxury real estate market in Arizona requires understanding the intricacies of jumbo loans and available financing options. Low down payment jumbo loans, piggyback structures, and VA jumbo loans offer viable pathways to homeownership in these high-demand areas.
It’s essential to consult with a qualified mortgage company that specializes in jumbo financing. This will help you determine the best financing strategy tailored to individual financial situations and goals. Please connect with by calling or submit the Request Contact Form for a rapid response 7 days a week.