2024 FHA Loan Limits in Arizona

Aspiring Arizona homebuyers with low credit scores or limited down payment savings may qualify to buy a home with the help of an FHA loan insured by the Federal Housing Administration. For 2024, Arizona residents purchasing a single-family home have loan limits that range from $498,257 to $530,150.

Arizona FHA loan limits by county

How are FHA loan limits determined?

The maximum amount you can borrow with an FHA loan typically changes each year because it is a percentage of the conforming loan limits set by the Federal Housing Finance Agency for conventional loans, which are mortgages that follow a set of rules created by Freddie Mac and Fannie Mae. These limits shift to reflect median U.S. home prices seen over the past year and vary depending on where the home is located.

In 2024, the loan limit floor, or maximum amount someone can get a single-family FHA loan for in most parts of the country, is $498,257 — or 65% of the national conforming loan limit of $766,550. Those living in major cities or pricier areas can take out larger FHA loans, ranging up to the ceiling amount of $1,149,825 — or 150% of the conforming loan limit. The highest FHA loan possible in Arizona, however, tops out at $530,150 in Coconino, Maricopa and Pinal counties.

How to qualify for an FHA loan in Arizona

Since the FHA will reimburse a lender if you default on your mortgage, these loans offer flexible qualification requirements. Here are the FHA’s minimum requirements:

→ Credit score of at least 500. To get an FHA loan with this low of a score, you’ll need to put down 10% or more when buying the home. If your score is 580 or higher, you can make just the minimum 3.5% required down payment. Borrowers who’ve recently experienced bankruptcy or foreclosure can also apply for an FHA loan sooner than the typical four- to seven-year waiting period with conventional loans.

→ 3.5% down payment. FHA loans allow you to finance almost all of the home purchase, excluding this small sum, if your credit score is 580 or higher. Those with lower scores will need to put down 10% or more. The down payment money can also come from a source other than yourself, such as a gift from a relative or the sale of an asset, like a car.

→ Debt-to-income ratio of 43% or less. Lenders will check how much of your earnings go toward debt repayment by dividing your total debt by your pretax income. The higher that ratio, the riskier a borrower you’re perceived to be, so the FHA sets the limit at 43%. You may still qualify with a higher ratio if you have a strong credit score and large cash savings.

→ FHA mortgage insurance coverage. The FHA requires borrowers to obtain two types of mortgage insurance to get an FHA loan. First is an upfront mortgage insurance premium equaling 1.75% of the total loan, which is usually tacked on to your outstanding mortgage balance. The other is an annual mortgage insurance premium, which costs between 0.15% and 0.75% of the total loan and is typically added to your monthly mortgage payment.

→ Used for primary home purchase. The home you buy using an FHA loan must be your primary residence for at least one year. These loans cannot be used to purchase vacation homes or rental properties.

→ Stable two-year job history. FHA loans have no income limits or requirements, but lenders want to see proof of your work history through two years worth of pay stubs and W-2s as well as employer contact information. Any large resume gaps will need to be explained.

→ Get an FHA appraisal. All homes financed with an FHA loan must first pass a $400 to $700 FHA appraisal to verify the value and condition of the home and check it is safe.

Buying a multifamily property with an FHA loan

FHA loans can also be used to buy multifamily properties with between two and four separate housing units. These residential mortgages function similarly to the single-family ones backed by the FHA, but come with higher loan limits that increase with each additional unit. To qualify for a multiunit FHA loan, you’ll need to meet these requirements:

• Credit score of at least 500. You’ll need to put down 10% or more with this low of a score. Those with scores of 580 or higher, can put down just 3.5%.
• Minimum 3.5% down payment. If your credit score is less than 580, you must put down 10% or more.
• Debt-to-income ratio of 43% or less. Lenders will divide your total debt by your pretax income to get a sense of your repayment ability. To get an FHA loan, that ratio should be at or below 43%. If your ratio is higher, you can still qualify, but you’ll need a strong credit score and cash reserves.
• Live in one of the units. The property should have between two and four residential units, or, if a mixed-use property, 51% of the square footage must be of residential use. You will need to live in one of the units for at least one year to qualify for the loan, though the remaining units can be rented out.

FHA lenders in Arizona

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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

Lender	LendingTree rating	Min. FHA credit score
Flagstar Bank	Read our review	580	Get offers
Guaranteed Rate	Read our review	Not disclosed	Get offers
PennyMac	Read our review	580	Get offers
Rocket Mortgage	Read our review	580	Get offers
BMO Harris Bank	Read our review	580	Get offers