Arizona Private Money Lending:
Licensing, Compliance & Documents

By Anthony Geraci, Managing Partner & CEO, Geraci LLP  |  October 2025

Arizona is one of the fastest-growing private money lending markets, driven by strong population growth in the Phoenix and Tucson metropolitan areas. The combination of no usury limits, non-judicial foreclosure, and a lender-friendly regulatory environment makes Arizona one of the best states in the country for private money lending operations.

This guide covers the essential licensing, usury, foreclosure, and document requirements for private money lenders originating loans in Arizona.

Related: Usury Laws by State  |  Deed of Trust vs. Mortgage Guide  |  How to Lend in Multiple States

Licensing Requirements

Arizona does not require a specific lending license for private money lenders making business-purpose loans secured by real estate. The Arizona Department of Financial Institutions regulates mortgage brokers and mortgage bankers under the Arizona Mortgage Banker and Broker Act, but these requirements apply primarily to consumer lending.

Key Compliance Considerations

Arizona's lack of usury limits provides maximum flexibility for private money lenders. There is no risk of a usury violation regardless of the interest rate charged, as long as the rate is specified in a written agreement.

Arizona uses a deed of trust with a trustee's sale process that can be completed in approximately 90-120 days. The trustee must record a notice of sale at least 90 days before the sale date.

Arizona is an anti-deficiency state for certain residential properties. Under A.R.S. Section 33-814, a lender who forecloses on a property of 2.5 acres or less used as a one-family or two-family dwelling cannot obtain a deficiency judgment. This applies only to purchase money loans, not refinance or business-purpose loans, but lenders should be aware of the restriction.

Arizona is a community property state. Both spouses typically must sign loan documents when community property is involved.

Document Requirements for Arizona Private Money Loans

Arizona private money loans require a deed of trust as the primary security instrument, along with a promissory note, loan agreement, personal guaranty (for entity borrowers), and state-specific disclosures and compliance riders. For fix-and-flip and construction loans, draw agreements, scope of work exhibits, and completion guarantees are also required.

Automate Loan Docs generates complete, Arizona-specific document packages that comply with all applicable state requirements. Every template is drafted by the attorneys at Geraci LLP, whose team has over 30 years of combined experience advising private money lenders across all 50 states — including extensive experience with Arizona lending transactions.