Updated 9/2024
If you’re a first-time homebuyer in Arizona, you have lots of options for home loans that can help you with your purchase. While some loan types, like conventional mortgages, may require specific credit scores to qualify, the Federal Housing Administration (FHA) offers home loans with less stringent requirements.
An FHA loan can help homebuyers make their home ownership dreams a reality. Let’s look at what you can expect from FHA loans, including FHA loan limits in Arizona for 2024.
What Is an FHA Loan?
FHA loans are insured through the federal government. That means lenders can provide potential homebuyers with more options, knowing they have the peace of mind that they’re protected by the FHA when they offer these types of loans to borrowers.
FHA loans can help first-time homebuyers who:
- Have lower credit scores: FHA loans are available to borrowers with credit scores as low as 500. Other types of loans, like a jumbo loan, may not be available for borrowers with scores in this range.
- Need low down-payment options: The minimum down payment amount required on an FHA loan is 3.5% of the purchase price. Other types of loans may require a higher down payment percentage amount.
- Have experienced past financial issues: For borrowers who have experienced a recent bankruptcy or foreclosure, an FHA loan may be an available home loan option. It may be more difficult for borrowers who have experienced financial issues like these to obtain other types of home loans.
FHA loans may also have lower closing cost requirements compared to conventional loans. These loans are an excellent option for borrowers who have difficulty qualifying for other home loans.
FHA loan requirements
FHA loan requirements tend to be more inclusive than other home loan requirements. However, borrowers must meet specific qualifications to obtain an FHA loan. These include:
- Credit score requirements: You must have a credit score of at least 500 to qualify for an FHA loan.
- Debt-to-income ratio requirements: Lenders look at your debt-to-income ratio (DTI), which reflects how much of your monthly gross income goes toward paying debts. According to the FHA, the maximum DTI for an FHA loan is 43% of the monthly gross income. If you have a higher DTI than this, you may still be able to qualify for an FHA loan if you have a higher credit score.
- Home approval: An FHA-approved appraiser must study the home you’re interested in. The home must also meet minimum property standards after a home inspection.
- Home type: You must use the home you purchase as your primary home. Second homes and investment properties don’t qualify for FHA loan approval.
- Residence requirements: You must occupy the home within 60 days of your closing date.
- Minimum down payment: FHA loan recipients with a credit score of at least 580 must make a minimum down payment of 3.5%. For those with a credit score of 500 to 579, the minimum down payment amount is 10%.
- Mortgage insurance premium (MIP): If you cannot make a 20% down payment, you’ll be required to pay a mortgage insurance premium. There’s an upfront MIP, typically at 1.75% of the base mortgage amount. There’s also an annual MIP based on factors like the term of the mortgage, the loan-to-value (LTV) ratio, the size of your down payment and the total mortgage amount. If you make the minimum FHA 3.5% down payment, you’ll typically pay MIP for the life of the loan. If you can make at least a 10% down payment, MIP remains on the loan only for 11 years.
- Proof of employment: Like other types of loans, a lender will typically require proof of steady employment to qualify for an FHA loan.
Talk with your lender about what’s available. Since FHA loans are intended to help more people from various financial backgrounds achieve their dream of home ownership, you likely have options.
What Is the FHA Loan Limit in Arizona?
A home loan limit is the maximum loan amount a lender will provide. Home loan limits are determined by factors like the average cost of homes in a particular area, so they’re segmented by county within each state. For example, the FHA loan limits in Maricopa County, Arizona, differ from those in Coconino County.
Home loan limits will also vary depending on how many units the property has. Below are the Arizona FHA loan limits for 2024, according to the U.S. Department of Housing and Urban Development.
Apache County FHA loan limits Arizona
- One-Family: $498,257
- Two-Family: $637,950
- Three-Family: $771,125
- Four-Family: $958,350
Cochise County FHA loan limits
- One-Family: $498,257
- Two-Family: $637,950
- Three-Family: $771,125
- Four-Family: $958,350
Coconino County FHA loan limits
- One-Family: $525,550
- Two-Family: $672,800
- Three-Family: $813,250
- Four-Family: $1,010,700
Gila County FHA loan limits
- One-Family: $498,257
- Two-Family: $637,950
- Three-Family: $771,125
- Four-Family: $958,350
Graham County FHA loan limits
- One-Family: $498,257
- Two-Family: $637,950
- Three-Family: $771,125
- Four-Family: $958,350
Greenlee County FHA loan limits
- One-Family: $498,257
- Two-Family: $637,950
- Three-Family: $771,125
- Four-Family: $958,350
La Paz County FHA loan limits
- One-Family: $498,257
- Two-Family: $637,950
- Three-Family: $771,125
- Four-Family: $958,350
Maricopa County FHA loan limits Arizona
- One-Family: $530,150
- Two-Family: $678,700
- Three-Family: $820,350
- Four-Family: $1,019,550
Mohave County FHA loan limits
- One-Family: $498,257
- Two-Family: $637,950
- Three-Family: $771,125
- Four-Family: $958,350
Navajo County FHA loan limits
- One-Family: $498,257
- Two-Family: $637,950
- Three-Family: $771,125
- Four-Family: $958,350
Pima County FHA loan limits Arizona
- One-Family: $498,257
- Two-Family: $637,950
- Three-Family: $771,125
- Four-Family: $958,350
Pinal County FHA loan limits
- One-Family: $530,150
- Two-Family: $678,700
- Three-Family: $820,350
- Four-Family: $1,019,550
Santa Cruz County FHA loan limits
- One-Family: $498,257
- Two-Family: $637,950
- Three-Family: $771,125
- Four-Family: $958,350
Yavapai County FHA loan limits
- One-Family: $498,257
- Two-Family: $637,950
- Three-Family: $771,125
- Four-Family: $958,350
Yuma County FHA loan limits
- One-Family: $498,257
- Two-Family: $637,950
- Three-Family: $771,125
- Four-Family: $958,350
Apply for an FHA Loan With AZCCU
Whether you have a lower credit score or less money available to make a down payment, FHA loans help make purchasing a home more accessible to more people. Now that you know how much home you may be able to qualify for with an FHA loan, you can research your options and connect with the home loan lending team at Arizona Central Credit Union.
Learn more about your FHA loan options in Arizona. Get home loan prequalification with no impact on your credit score for free. If you have any questions, contact AZCCU online or call (866) 264-6421.
