Two of my agents are Canadian and we represent several Canadian buyers. Although it's been challenging for foreign investors in the past few years, we know of only one bank that offers financing with only 25% down.
Ideally, if it was at all possible to pay cash then work on getting a loan and refinance down the road.
Jeffrey Austin ABR, CRS, GRI
Real Estate Homes, LLC
We work with Canadian buyers and often find that it is most beneficial for them to explore Canadian lending sources. In most cases they find the rates and terms are more beneficial than those they currently find in the US. Once the funds are transfered here for the closing the transacioin is normally handled as a "cash transaction,"
Our recommendation is to consider both Canadian and US lenders as possible resources and do your homework before making your decision.
The easy answer is apply for a mortgage in AZ. If you have good credit in Canada, it can be found. If this is going to be a personal residence you'll get better rates and terms. If you are going to buy it as a rental or other investment property, disclose that. The loan programs and terms will be different, but still affordable.
Good luck with your purchase.