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FHA Loans in Arizona

Affectionately called the Grand Canyon State in reference to its most notable attraction, Arizona is one of the most beautiful states in the nation. Americans are buying homes to live in Arizona cities like Phoenix or Tucson, or to find a cozy spot near many of Arizona’s national forests and natural attractions.

When buying a home in Arizona, the hard part isn’t actually choosing a property, but rather figuring out how to finance it. There are many loan options, so it's easy for the process to feel overwhelming. It’s the reason why many Arizonans have decided to simplify the process and save money with an Arizona FHA loan. Keep reading to find out if an FHA loan is right for you.

Why Choose an FHA Loan in Arizona?

With more than 2 million people moving to Arizona in the past 20 years, it’s no surprise the total value of FHA loans in Arizona was nearly $415 million as of April 2019. The FHA loan program in Arizona is a reliable option when choosing a mortgage option for your new home.

Benefits of FHA Loans in AZ

  • FHA loans are great for first-time homebuyers, especially those who can’t or don’t want to put down a large down payment.
  • FHA mortgage rates are typically lower than conventional mortgage rates.
  • FHA down payment and credit score requirements are typically lower than conventional loans
  • Sellers can contribute up to 6% of the purchase price or appraised value (whichever is less) towards the buyers’ closing costs.
  • FHA loans are assumable

FHA Loan Limits in Arizona

Generally speaking, the FHA loan limit baseline in Arizona is $498,257. However, in places such as Coconino County the loan limit is $525,550. It’s important to have an idea of how much you can borrow while shopping for your new home, so check out the table below for the full list of 2024 FHA loan limits in Arizona.

Arizona FHA Loan Limits by County

County FHA Loan Limit
Coconino $525,550
All other areas $498,257

Are You Eligible for an FHA Loan in AZ?

You may be eligible for an FHA loan, if you:

  • Have 2 years of steady employment, preferably with the same employer.
  • Have had steady income (or increasing income) in the past two years.
  • Have had less than two 30-day periods of late payments on your credit report.
  • Have declared bankruptcy no less than two years ago and have maintained good credit since.
  • Have not been a party in a foreclosure for at least three years and have maintained good credit since.
  • Anticipate your mortgage payment will be equal to or less than 30% of your gross income.

What Do You Need to Apply for an FHA Loan in AZ?

Buyers must be able to provide the following information and documents as requested by lenders:

  • The addresses of all your residences over the past two years.
  • The names of your employers over the past two years.
  • W2's for the past two years and current paycheck stubs.
  • Your current gross monthly salary.
  • Your Social Security Number.
  • Names, addresses, and account numbers with balances on all checking and savings accounts.
  • Addresses and loan information of any other real estate you owned.
  • Self-employed individuals will need to provide personal tax returns for the past two years and a current income statement and balance sheet for the business.
  • Students will need to provide evidence of enrollment. If you have student loans, you need to provide verification information.

Note: Facts and figures sourced from the latest statistics available at the time of this writing including data from the United States Department of Labor, United States Census Bureau and the United States Department of Housing and Urban Development.