Three Arizona situations banks handle badly
- The agent or broker. Maricopa County has one of the largest real estate licensee populations in the country, and commission income arrives in a handful of large deposits with long gaps between them. A bank's two-year average of a return full of marketing and vehicle write-offs does not describe the business. Twelve months of deposits do.
- The house with solar on it. Arizona's rooftop-solar adoption is among the highest in the nation, and a large share of it was financed with a loan secured by a UCC fixture filing or, less often, a recorded lien. Many lenders stop at that. This program lends behind solar financing and PACE assessments; the solar balance simply counts toward the equity calculation. Details on the solar and PACE page.
- The seasonal resident. Owners who winter in Scottsdale, Sun City or Green Valley and summer elsewhere need to say which home is primary — it follows where you spend most of the year, not which one you prefer. Second homes qualify with lower maximums.
What is specific to an Arizona file
- Community property. Arizona is a community-property state. Expect a non-borrowing spouse to sign the security instrument even when the deposits are entirely one spouse's business.
- No mortgage recording tax. Arizona charges county recording fees only; there is no state tax on the amount secured.
- HOAs are the norm. Most homes built in the Valley since the 1990s sit in an association. Dues are counted as a monthly obligation; nothing about an HOA disqualifies the property.
- Short-term rentals are investment property. A Scottsdale or Sedona rental qualifies on 12 months of rental deposits, with investment-property maximums. Local licensing is between you and the city, not part of the loan file.
- Valuation is fast in the metros. Phoenix, Tucson and the suburbs have deep automated-valuation data; lines to $400,000 usually close without an appraiser. Outlying acreage and unusual properties may need one regardless of size.
Contractors and the post-boom return
Arizona's building trades — framers, roofers, pool builders, landscape and HVAC companies — ran hard through the last decade and wrote off trucks, equipment and crews as fast as the code allowed. The return that results is exactly what a bank cannot use, even when the operating account shows a healthy business. A deposit-based line reads the account, which is why trades owners are the second-largest group on this program after agents in Arizona.
Common questions
I have a solar loan on my Phoenix house. Is that a problem?
No. The program lends behind solar loans and PACE assessments. The solar balance counts toward total equity, and that is the only effect.
Does my spouse have to sign if the business is only mine?
In Arizona, usually yes. It is a community-property state, so a non-borrowing spouse signs the security instrument. It does not add them to the income review.
I'm in Arizona from November to April. Which house is primary?
The one where you spend the majority of the year and claim your residence. If the Arizona home is the second home, it qualifies with lower maximums — say so at the start.
I'm a real estate agent with three closings a quarter. How is my income read?
As 12 months of commission deposits into your account, gaps and all. Nothing is averaged against a prior year's return.