Phoenix is America’s fastest-growing major city. Scottsdale is a DSCR and luxury Jumbo market. Tucson has one of the strongest DSCR fundamentals in the Southwest. And Arizona is the #1 destination for California transplants — self-employed borrowers who left CA and need bank statement loans, not W-2s. BFF has the license, the programs, and the AZ expertise to serve every one of these borrowers through your brokerage.
Arizona has absorbed more California migrants than any other state for over a decade. Most of them arrive self-employed, with complex income structures built for a high-tax state that no longer applies. They own businesses, consult independently, or work in tech on 1099 contracts — and they need bank statement loans, not W-2 qualification. At the same time, TSMC and Intel are building massive semiconductor fabrication plants in Phoenix’s West Valley, creating thousands of high-income tech contractor and relocated engineer positions — another wave of Non-QM borrowers. Scottsdale and Paradise Valley are luxury markets where conforming limits are simply irrelevant. Sedona averages over $1.2M in median home price. Jumbo is standard, not specialty. And Arizona is one of the top four foreign buyer destinations in the country — Mexican buyers drawn by proximity and culture, Canadian snowbirds fleeing winter. Both groups need programs that conventional banks can’t offer. BFF holds the Arizona Mortgage Banker License #0948197, regulated by the Arizona Department of Insurance and Financial Institutions (DIFI) under A.R.S. §6-943.
Arizona has unique licensing, market, and regulatory dynamics that affect how Non-QM loans originate and close in the state.
BFF holds an Arizona Mortgage Banker License #0948197, regulated by the Arizona Department of Insurance and Financial Institutions (DIFI) under A.R.S. §6-943. The DIFI was created in 2020 by the merger of the former AZDFI and the Department of Insurance. AZ broker license applicants must name a Responsible Individual (RI) with at least 3 years of qualifying lending experience — a requirement unique to Arizona that affects broker license applications. Contact difi.az.gov for licensing information.
Arizona state law preempts local STR bans, but Scottsdale, Tempe, and Phoenix have implemented new operational regulations in 2025. Scottsdale now requires exterior security cameras with 7-day retention. Tempe has a “three strikes” noise policy. Phoenix limits STRs to 10% of units in multi-family buildings with dedicated parking requirements and a 60-minute local contact response requirement. When underwriting DSCR STR properties in these cities, ensure borrowers are aware of and compliant with these regulations — non-compliance can affect rental income projections and property eligibility.
Arizona receives more California migrants than any other state. Many are business owners, entrepreneurs, and consultants who relocated specifically for lower taxes and cost of living. They typically have strong income but write off significant business expenses on their tax returns, making their taxable income appear much lower than their actual cash flow. BFF’s Bank Statement program is the perfect fit: qualify on 12 or 24 months of deposits, not the tax return number. Phoenix, Scottsdale, and Chandler see the highest concentration of these borrowers.
Taiwan Semiconductor Manufacturing Company (TSMC) and Intel are building major semiconductor fabrication plants in the Phoenix West Valley (Chandler, Glendale). These projects are attracting thousands of high-income engineers, project managers, and contractors — many on 1099 contracts, relocation packages, or stock compensation. This creates strong demand for 1099 loans, Bank Statement programs, and full-doc jumbo for high earners whose income structures don’t fit conventional boxes.
Arizona is the top Canadian snowbird destination in the US. Scottsdale, Surprise, Goodyear, and Sun City attract tens of thousands of Canadians each winter, many of whom seek to purchase investment properties or vacation homes. BFF’s Foreign National program provides investment property financing up to $1.5M at 75% LTV with no US credit required. Mexican buyers are also active, particularly in Phoenix metro. Arizona ranked #4 for foreign purchases nationally (NAR 2024–25).
Arizona’s reliance on the Colorado River and aquifer systems has become a material concern for long-term real estate investors. Newer outer-ring subdivisions in Rio Verde, Queen Creek, and parts of Maricopa have faced water supply issues. While this doesn’t currently affect loan underwriting, it’s an emerging risk factor for DSCR investors making long-term rental market decisions in Arizona. Established urban markets (Phoenix, Scottsdale, Tucson, Tempe, Chandler) have more secure water infrastructure. Brokers with investor clients should be conversant in this issue.
The borrowers driving Arizona's Non-QM demand — and the programs that serve them.
Left California with their business, relocated to AZ for tax relief. Self-employed income, needs bank statements.
TSMC, Intel, Lucid Motors, and tech sector creating wave of 1099 contractor income in Phoenix West Valley.
Winter residents in Scottsdale, Surprise, and Sun City. Asset Utilization for retirement income. Foreign National DSCR.
Phoenix, Tucson, Mesa, Chandler, Gilbert — all showing strong rental fundamentals and DSCR demand.
Luke AFB, Davis-Monthan, Fort Huachuca, MCAS Yuma. VA demand strong across Phoenix metro and Tucson.
Scottsdale, Paradise Valley, Sedona markets where $800K–$2M+ is standard. Full Doc & Non-QM Jumbo.
Every BFF program is available to licensed Arizona mortgage brokers. Non-QM, DSCR, jumbo, government, Foreign National — all in one wholesale relationship.
America’s fastest-growing large city. CA transplant hub. TSMC/Intel tech corridor creating 1099 contractor demand. Strong long-term DSCR market.
Bank Stmt · DSCR · 1099$860K median. Luxury SFR and resort communities. STR vacation rental demand. New 2025 STR regulations to navigate.
Jumbo · DSCR STR · AssetUniversity of Arizona drives rental demand. Davis-Monthan AFB creates VA volume. Raytheon defense contractors = 1099 income.
VA · DSCR · 1099$1.2M+ median. Red rock STR vacation rental capital. Jumbo is standard. Wellness and arts economy creates seasonal income borrowers.
Jumbo · DSCR STR · Bank StmtArizona’s retirement capital. Canadian snowbirds and domestic retirees. Asset Utilization and Foreign National DSCR in active adult communities.
Asset Util · Foreign NatlNAU university market in Flagstaff. MCAS Yuma military. Seasonal income from outdoor and tourism economy creates Non-QM demand.
VA · Bank Stmt · FHAArizona’s diverse borrower mix demands a wholesale partner with program depth across Non-QM, Jumbo, VA, and Foreign National. BFF has the license, the programs, and the expertise.
BFF holds Arizona Mortgage Banker License #0948197, regulated by DIFI under A.R.S. §6-943. Approved to lend statewide in Arizona — every market, every county.
Our Bank Statement program was designed for exactly the borrower flooding into Arizona from California — strong income, heavy deductions, low taxable income. BFF qualifies them on deposits.
Scottsdale and Sedona require Jumbo programs and STR-eligible DSCR that most wholesale lenders can’t provide. BFF lends to $5M on Jumbo and accepts STR rental projections for DSCR qualification.
BFF’s Foreign National and ITIN programs serve Arizona’s substantial international buyer market — Canadian snowbirds, Mexican buyers, and international investors purchasing Arizona investment properties.
Luke AFB, Davis-Monthan, Fort Huachuca, MCAS Yuma — BFF’s VA program serves Arizona’s four major military installations with competitive rates and fast underwriting for active duty and veterans.
Complete packages get an initial underwriting decision in 24–48 business hours. In Phoenix’s competitive purchase market, speed is a real advantage for your borrowers and your realtor relationships.
Here’s what you need to become an approved BFF broker in Arizona.
Your brokerage must hold an active Arizona Mortgage Broker License or Mortgage Banker License, regulated by the Arizona Department of Insurance and Financial Institutions (DIFI) under A.R.S. §6-903 or §6-943. Arizona requires a named Responsible Individual (RI) with at least 3 years of qualifying lending experience. Verify at difi.az.gov or NMLS Consumer Access.
All originating loan officers must hold an active Arizona LO license. Arizona requires the standard 20-hour NMLS pre-licensing education plus Arizona-specific education through DIFI. The 24-hour Arizona Mortgage Broker course is available through OnCourse Learning for broker applicants. All licenses must be in good NMLS standing.
Submit BFF’s Broker Application Package (PDF or DocuSign) from the Resource Center. For DSCR and investment property submissions, the Business Purpose Broker Application is also required.
Active E&O coverage required for all BFF broker partners. Minimum coverage amounts and details are included in the Broker Application Package.
A dedicated BFF Account Executive will reach out within 1–2 business days of your completed application. You’ll receive portal access, a rate sheet, and an introduction to your AE who understands AZ market nuances including CA transplant bank statement borrowers, Scottsdale STR DSCR, and Canadian snowbird Foreign National scenarios.
Ready to close in Arizona?
Yes. BFF (FlexPoint, Inc.) holds an Arizona Mortgage Banker License #0948197, regulated by the Arizona Department of Insurance and Financial Institutions (DIFI) under A.R.S. §6-943. NMLS #243082. Verify at NMLS Consumer Access.
Yes — and this is one of the most common Arizona scenarios BFF handles. Many CA transplants are self-employed business owners with strong income but heavy tax deductions, making their tax returns show much lower income than their actual deposits. BFF’s Bank Statement program qualifies on 12 or 24 months of personal or business bank statements — up to $4M at 90% LTV, minimum 620 FICO. No tax returns required. Perfect for the wave of entrepreneurs who relocated from California to Phoenix, Scottsdale, Chandler, and Gilbert.
Yes. BFF’s DSCR program is eligible for short-term rental properties in Scottsdale, Sedona, Flagstaff, and other Arizona vacation markets. STR income projections from AirDNA or comparable market data are accepted for qualifying. Note that Scottsdale and Tempe implemented new STR regulations in 2025 (security camera requirements, noise strike policies) — ensure borrowers are compliant before submitting. DSCR up to $3.5M at 85% LTV, minimum 640 FICO, no personal income required.
Yes. Scottsdale’s median sale price of approximately $860,000 and Sedona’s median exceeding $1.2M routinely push purchases above conforming loan limits. BFF offers both Full Doc and Non-QM Jumbo up to $5M for Arizona’s luxury markets including Scottsdale, Paradise Valley, Fountain Hills, and Sedona. Non-QM Jumbo is particularly useful for self-employed borrowers and CA transplants who can’t qualify on tax returns alone.
Yes. Arizona ranked 4th for foreign real estate purchases nationally in 2024–25. Canadian snowbirds purchasing winter homes in Scottsdale, Surprise, and Sun City, and Mexican buyers purchasing in the Phoenix metro, are the primary international buyer types. BFF’s Foreign National program allows investment property purchases up to $1.5M at 75% LTV with no US credit score or tax returns required. ITIN borrowers have a separate dedicated program.
Apply through BFF’s Become a Broker Partner page. You’ll need: an active Arizona Mortgage Broker or Mortgage Banker license (DIFI), all originators must have AZ LO licenses, active E&O insurance, and a completed Broker Application Package. Note that Arizona requires a named Responsible Individual (RI) for company license applications. Approval typically takes 1–2 business days. Your BFF AE will introduce you to AZ-specific programs for bank statement borrowers, DSCR STR, jumbo, and foreign national scenarios.
Partner with BFF for fast, reliable wholesale lending in Arizona. Submit a scenario or become an approved broker today.
