If you are looking to buy your new home in the state of Arizona, and you qualify for an FHA loan, you may want to consider choosing your location based on the loan limits.
There are 15 counties in Arizona and all offer FHA loans.
The maximum FHA loan limit in Arizona is $389,850 for a single-family residence and up to $707,700 for a Four-Family Residence. Coconino County, AZ has the highest FHA Loan Limits in Arizona.
The US Department of Housing and Urban Development is responsible for setting these limits each year. Let’s look at the breakdown for each home type.
All data for this article was pulled directly from the HUD website on 3/6/2021.
FHA Loan Limits for Single Family Homes in Arizona
Coconino county has the highest FHA loan limit available for single-family homes in Arizona at $389,850. Encompassing the area of Flagstaff and parts of Sedona.
Runners up are Maricopa and Pinal counties each having limits of $368,000. Throughout the rest of Arizona, the limit is $356,362.
|Arizona County||Single-Family FHA Loan Limit|
FHA Loan Limits for Two-Family Homes in Arizona
If you are looking to purchase a two-family home in Arizona using an FHA loan, Coconino County will have the highest available limits at $499,050. Maricopa and Pinal Counties run a close second at $471,100.
All other counties in Arizona have the FHA Loan capped at $456,275.
|Arizona County||Two-Family FHA Loan Limit|
FHA Loan Limits for Three-Family Homes in Arizona
Housing multiple families one property is becoming more and more popular. Expenses can be shared between family members as well as maintenance and upkeep responsibilities.
If you are looking at purchasing a three-family home in Arizona, here are the limits.
|Arizona County||Three-Family FHA Loan Limit|
FHA Loan Limits for Four-Family Homes in Arizona
The largest home type allowed to be financed with an FHA loan is a four-family home. The reality is, FHA eligible homes of this size are very rarely available and usually very quickly purchased. That being said, here are the limits you would be looking at.
|Arizona County||Four-Family FHA Loan Limit|
How to Qualify for an FHA Loan in Arizona?
To qualify for an FHA loan in Arizona, you will need to select a home that is below the maximum FHA loan limits for the county. In addition, you will need to meet other FHA program requirements such as:
- Credit Score of at least 500
- Will be using the home as your main residence.
- Stable Job with Steady Income
- Debt to Income Ratio of <43%
- Pay Mortgage Insurance
Keep in mind that the FHA program really is there to support those who otherwise wouldn’t be able to attain a traditional mortgage for reasons like:
- Less than 20% Down Payment
- Low Credit Scores
This can be a great way to become a first-time homeowner but keep in mind that the FHA program is not limited to first-time homebuyers.
FHA Home Plus Program
Arizona also offers the FHA Home Plus Program in all counties except for Maricopa and Pima. This program provides down payment assistance of up to $19,200.
This program can be a great option for you if your FICO score is at least 640.
How Expensive of a House Can I Buy with a FHA Loan in Arizona?
A traditional home loan typically requires a 20% down payment but, if you are going the FHA route, you can lower that to as little as 3.5% down.
Keep in mind that the lower your down payment, the lower your total purchase price can be. Pinpointing a maximum home value is a conversation that you should have with your mortgage broker based on current interest rates, mortgage insurance premiums, and the county you are purchasing your home in.
Your real estate agent should be able to put you into contact with a mortgage broker specializing in Arizona properties who can assist with calculating your maximum home purchase amount.
Remember, though, that all real estate transactions are a negotiation. The asking price does not have to be the final price. Work with your agent to determine a fair offer.
Other Home Loan Programs in Arizona
Even if you started out looking for a FHA loan, work with your mortgage broker to discuss the details of other home buying programs available in Arizona. They can help you evaluate your unique situation and find the right financing option for you.
Some other home buying programs in Arizona include:
- Arizona USDA Home Loans
- Arizona VA Home Loans
- Arizona Home Plus FHA Loan Program
- Arizona Home Plus VA & USDA Loan Program