Mezzanine Financing in Tucson, AZ

Pima County's Tucson market is exhibiting a measured correction, with the median sale price at $360,000 — down 2.7% year-over-year — against a backdrop of 4,663 active listings and a 74-day average days on market. The 97.7% sale-to-list ratio signals a market in balance: sellers are pricing more precisely, and buyers are transacting near asking price without the bidding pressure that characterized 2022 and early 2023.

For purchase financing, Pima County is a textbook first-time homebuyer market. The $806,500 conforming limit is far above the median transaction, meaning 3% down conventional and 3.5% down FHA are both fully viable entry points. The University of Arizona's presence creates consistent demand across rental-adjacent neighborhoods, making DSCR investor loans an active product category. We are also seeing strong refinance interest from borrowers who purchased with ARM products in 2021-2022 and are now restructuring into fixed-rate instruments.

Tucson's borrower base reflects the city's role as a government, education, and healthcare hub. University of Arizona faculty and staff, Raytheon and defense contractor employees, and Banner Health system workers form the core W-2 buyer segment. Retirees from the Midwest and East Coast represent a growing second segment attracted by the desert climate and cost of living. The self-employed and gig economy worker concentration is below average relative to Phoenix metro.