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Home / Arizona / FHA in Arizona
Purchase or refinance · 220+ lenders
An FHA loan is a mortgage insured by the Federal Housing Administration. The insurance is what lets lenders offer a low down payment and more flexible credit guidelines. The rules come from HUD. The loan limits, and the Arizona assistance you can pair with FHA, depend on the county. We can offer Home Plus and Home in Five through Loan Factory, subject to eligibility and available program funds, and we shop FHA pricing across 220+ wholesale lenders.
Illustrative only. HUD sets FHA rules. County limits are for case numbers assigned on or after January 1, 2026. All loans subject to approval.
FHA itself is a national program. What changes in Arizona is the county loan limit, the local assistance you can layer on, and who is sitting with you to explain both.
For a purchase, HUD sets the maximum loan-to-value at 96.5% of the adjusted value, which is 3.5% down, when the minimum decision credit score is 580 or higher.
HUD Handbook 4000.1 (revised August 13, 2025): a score at or above 580 is eligible for maximum financing. Scores from 500 to 579 are limited to 90% LTV, which is 10% down. Lenders may set higher minimums.
FHA allows documented gift funds from eligible donors. Arizona programs such as Home Plus and Home in Five are built to pair with FHA, and we can offer both through Loan Factory, subject to eligibility and available program funds. See Arizona down payment assistance.
FHA is for a primary residence. You can buy a 2- to 4-unit property if you live in one of the units, subject to eligibility and the higher multi-unit loan limit.
FHA limits are set by HUD by metropolitan area and county. In 2026, three Arizona counties sit above the national FHA floor: Coconino, Maricopa, and Pinal. The other 12 counties are at the floor.
We compare FHA pricing across 220+ wholesale lenders. The $2,000 Best Price Guarantee applies to eligible fixed-rate FHA loans. See the terms.
The same FHA rulebook applies in Phoenix, Flagstaff, Tucson, and Yuma. The limit on the loan amount is what changes by county.
These are HUD's published rules from Handbook 4000.1, last revised August 13, 2025, plus the 2026 loan limits in Mortgagee Letter 2025-23. Individual lenders can require more. All loans are subject to approval and eligibility.
For purchases, the maximum LTV is 96.5% of the adjusted value (3.5% down). That maximum financing is available when the borrower's minimum decision credit score is 580 or higher. Scores from 500 to 579 are limited to 90% LTV (10% down). Borrowers with no traditional credit can still be considered through a manual underwrite, subject to HUD's manual rules. A low score is not a yes, and a high score is not automatic approval.
FHA loans are for a home you will live in as your principal residence. At least one borrower must occupy the property within 60 days of signing the mortgage, under HUD rules. FHA is not for a pure investment property. A 2- to 4-unit home is allowed if you occupy one unit.
FHA charges a one-time upfront MIP and an annual MIP collected monthly. The upfront premium, under Handbook 4000.1, is 175 basis points (1.75%) of the base loan amount for most forward mortgages, and it may be financed into the loan or paid in cash. The annual MIP amount depends on loan size, term, and loan-to-value. The duration is simpler to remember: if you put 10% or more down (LTV of 90% or less), annual MIP typically lasts 11 years. If you put less than 10% down, annual MIP typically lasts for the life of the loan. HUD can change these figures. Refinancing into a conventional loan later may be a way to remove mortgage insurance, subject to approval. See conventional loans and how to get rid of PMI (PMI is the conventional version; FHA uses MIP).
Lenders compare your monthly debts to your income. Automated underwriting can allow higher ratios with compensating factors. Manual underwrites follow tighter HUD ratios. Typical documents include pay stubs, W-2s or tax returns, and bank statements. Self-employed borrowers should see self-employed and 1099 mortgages.
The home must meet HUD's minimum property requirements: safe, sound, and secure, with adequate water, sewage, heat, electricity, and kitchen facilities, among other items, checked through an FHA appraisal. Needed repairs can be required before closing. This is one reason an FHA offer can look different from a conventional offer on an older house.
Your base loan amount cannot exceed the FHA limit for that county and unit count. Upfront MIP that is financed sits on top of the base loan amount and is not counted against that limit in the same way. For a full Maricopa walkthrough, see Maricopa County loan limits.
Effective for FHA case numbers assigned on or after January 1, 2026.
HUD sets a national FHA floor and a national FHA ceiling from the same conforming-loan number FHFA publishes. For 2026, Mortgagee Letter 2025-23 (December 11, 2025) sets the floor at 65% of the $832,750 conforming limit, which is $541,287 for a one-unit home, and the ceiling at 150%, which is $1,249,125. Most of Arizona is at the floor. Three counties are above it, still well below the ceiling.
Maricopa and Pinal Counties share the Phoenix-Mesa-Chandler metropolitan area. HUD's median sale price used to set the 2026 limit for that area is $485,000. One hundred fifteen percent of $485,000 is $557,750, which is the published 2026 one-unit FHA limit for both counties. Coconino County (Flagstaff) is higher, at $609,500 for a one-unit home.
| County | One-unit | Two-unit | Three-unit | Four-unit |
|---|---|---|---|---|
| Apache | $541,287 | $693,050 | $837,700 | $1,041,125 |
| Cochise | $541,287 | $693,050 | $837,700 | $1,041,125 |
| Coconino | $609,500 | $780,250 | $943,150 | $1,172,150 |
| Gila | $541,287 | $693,050 | $837,700 | $1,041,125 |
| Graham | $541,287 | $693,050 | $837,700 | $1,041,125 |
| Greenlee | $541,287 | $693,050 | $837,700 | $1,041,125 |
| La Paz | $541,287 | $693,050 | $837,700 | $1,041,125 |
| Maricopa | $557,750 | $714,000 | $863,100 | $1,072,600 |
| Mohave | $541,287 | $693,050 | $837,700 | $1,041,125 |
| Navajo | $541,287 | $693,050 | $837,700 | $1,041,125 |
| Pima | $541,287 | $693,050 | $837,700 | $1,041,125 |
| Pinal | $557,750 | $714,000 | $863,100 | $1,072,600 |
| Santa Cruz | $541,287 | $693,050 | $837,700 | $1,041,125 |
| Yavapai | $541,287 | $693,050 | $837,700 | $1,041,125 |
| Yuma | $541,287 | $693,050 | $837,700 | $1,041,125 |
These figures are loan limits, not price limits. A higher purchase price can still work if your down payment brings the base loan amount under the cap. A $600,000 Maricopa County home with 10% down is a $540,000 loan, which is under the $557,750 FHA limit. The same home with 3.5% down is a $579,000 loan, which is over the FHA limit and would need a different loan type, such as a conventional loan under the $832,750 conforming limit, or a jumbo loan.
The 2027 FHA limits are not published as of November 11, 2026. HUD typically follows FHFA's late-November conforming-limit announcement with a mortgagee letter in December. We will update this page when the 2027 figures are out.
Sources: HUD Mortgagee Letter 2025-23; HUD FHA mortgage limits lookup (state AZ, CY2026), retrieved November 11, 2026, including Maricopa County at $557,750; HUD CY2026 FHA Forward limits file at apps.hud.gov/pub/chums/cy2026-forward-limits.txt; FHFA news release of November 25, 2025, for the $832,750 conforming baseline.
If you are cash-short, this is often the combination we look at first, subject to eligibility.
FHA is often the first mortgage behind Arizona down payment assistance, because the 3.5% down payment can be covered, in whole or in part, by a program second loan. Pick My Mortgage Rate, Jerry Kindig's team through Loan Factory, can offer Arizona Home Plus and Home in Five, subject to eligibility and available program funds.
Up to 4% of the FHA first mortgage as a second loan that is forgiven on the fifth anniversary. Income cap $155,386 as of April 6, 2026. Minimum credit 620. First-time status is not required. Available in every Arizona county.
3% to 6% of the FHA first mortgage. Program income cap $157,360 as of June 10, 2026. Minimum credit 640. An 8-hour Arizona homebuyer course is required. Several repayment structures; the 7-year forgivable option was fully funded-out as of June 25, 2026.
Using assistance does not raise the FHA county loan limit. The first mortgage still has to fit under the figures in the table above. Details and current funding are on Arizona down payment assistance. First-time buyers can also start on Arizona first-time home buyer programs.
A state or county program is not always the best fit. We will show you the alternatives.
Besides Arizona's state and county programs, we also have access to other lender down payment assistance programs. Those programs may be a better fit for your situation, and they are available in all of the states where we are licensed. See where we are licensed.
We do not list those lender programs by name on this page, and we do not publish amounts or terms for them, because the right option depends on your file and on current lender guidelines. When you talk with us, we will compare them side by side with Home Plus, Home in Five, and a loan with no assistance, subject to approval and eligibility.
FHA is not automatically better. Conventional can be a better fit with stronger credit, a larger down payment, or a price that sits above the FHA county limit but under the conforming limit. We will compare both. See FHA vs. Conventional.
| Feature | FHA | Conventional |
|---|---|---|
| Down payment | As little as 3.5% down at a 580 or higher score; 10% down at 500 to 579, under HUD rules | As little as 3% down on eligible low-down programs |
| Mortgage insurance | Upfront MIP (currently 1.75% of the base loan, typically financed) plus annual MIP; may last 11 years or the life of the loan | PMI on loans below 20% down; can usually be removed with enough equity |
| 2026 one-unit limit in Maricopa County | $557,750 (FHA) | $832,750 (conforming) |
| 2026 one-unit limit in Coconino County | $609,500 (FHA) | $832,750 (conforming) |
| Occupancy | Primary residence only; occupy within 60 days | Primary, second home, or investment, depending on the program |
| Credit | More flexible published floors (580 for maximum financing) | Generally a stronger credit profile |
| Property | Must meet HUD minimum property requirements | Agency property standards; often fewer FHA-style repair conditions |
An illustrative look at MIP on an FHA loan, using HUD's current structure.
Most FHA loans include an upfront mortgage insurance premium, currently 1.75% of the base loan amount, which is usually financed into the loan.
An annual premium is divided into your monthly payment. The rate depends on loan size, term, and down payment.
With 10% or more down, annual MIP typically ends after 11 years. With less than 10% down, it typically lasts for the life of the loan.
Refinancing into a conventional loan may let you remove mortgage insurance, subject to approval.
Illustrative. MIP terms are set by HUD and can change. Duration depends on down payment and term. Refinancing is subject to approval.
Close a loan with another lender at a lower combination of interest rate, fees, and monthly mortgage insurance, and we'll send you a $2,000 check.
Under HUD Handbook 4000.1, a minimum decision credit score of 580 or higher is eligible for maximum financing (up to 96.5% LTV, or 3.5% down). Scores from 500 to 579 are limited to 90% LTV (10% down). Arizona lenders may set higher minimums. All loans are subject to approval.
It depends on the county. For a one-unit home, the 2026 FHA limit is $557,750 in Maricopa and Pinal Counties, $609,500 in Coconino County, and $541,287 in the other 12 Arizona counties. Two- to four-unit limits are higher. These apply to case numbers assigned on or after January 1, 2026.
Phoenix is in Maricopa County. The 2026 FHA one-unit limit is $557,750, with $714,000, $863,100, and $1,072,600 for two-, three-, and four-unit homes. The conforming (Fannie Mae and Freddie Mac) one-unit limit in the same county is $832,750. See Maricopa County loan limits.
Yes, subject to eligibility. We can offer Home Plus (statewide, up to 4%) and Home in Five Advantage (Maricopa County, 3% to 6%) through Loan Factory, and both are designed to pair with FHA. The FHA first mortgage still has to fit under the county FHA limit. Besides those state and county programs, we also have access to other lender down payment assistance that may be a better fit, available in all of the states where we are licensed. We will compare them side by side. See Arizona down payment assistance.
HUD charges an upfront MIP, currently 1.75% of the base loan amount for most forward mortgages, which you can finance, and an annual MIP paid monthly. If you put less than 10% down, annual MIP typically lasts the life of the loan. If you put 10% or more down, it typically lasts 11 years. HUD can change these terms.
A Chapter 7 discharge does not disqualify you for FHA if at least two years have passed since the discharge, with re-established credit, under HUD Handbook 4000.1. Chapter 13 may be possible after 12 months of satisfactory payout-plan payments and written court permission. See Buying a home after bankruptcy. All loans are subject to approval.
No. FHA is open to repeat buyers. It is limited to a primary residence. First-time buyers often use it because of the low down payment and flexible credit rules, and because it pairs well with Arizona assistance.
Not as of November 11, 2026. HUD has not published 2027 FHA mortgage limits. We will update this page when the official mortgagee letter and county file are out.
Written by Jerry L Kindig III, NMLS #2397823, a mortgage loan originator licensed in Arizona. Loan Factory, NMLS #320841. Equal Housing Opportunity. Program rules, income limits, assistance amounts, and loan limits change. Confirm current terms with the program administrator and a licensed loan officer before you make a decision. All loans and assistance are subject to approval and eligibility. Nothing on this page is a promise of approval, a loan offer, or a commitment to lend.
Send a note and a licensed loan officer will follow up. Prefer to move now? All loans are subject to approval.