FHA Loans: What You Need to Know in 2022
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2022 FHA Loan Limits in Arizona

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Homebuyers looking for the flexibility of a loan backed by the Federal Housing Administration (FHA) can borrow up to $420,680 for a single-family home in most counties within the state. However, borrowers in higher-cost areas such as Maricopa and Pinal may qualify for up to $441,600 under the new 2022 limits for a one-unit home.

Arizona FHA loan limits by county

County NameOne unitTwo unitThree unitFour unitMedian Sales Price
APACHE$420,680$538,650$651,050$809,150$130,000
COCHISE$420,680$538,650$651,050$809,150$179,000
COCONINO$423,200$541,750$654,850$813,850$368,000
GILA$420,680$538,650$651,050$809,150$239,000
GRAHAM$420,680$538,650$651,050$809,150$184,000
GREENLEE$420,680$538,650$651,050$809,150$85,000
LA PAZ$420,680$538,650$651,050$809,150$99,000
MARICOPA$441,600$565,300$683,350$849,250$384,000
MOHAVE$420,680$538,650$651,050$809,150$212,000
NAVAJO$420,680$538,650$651,050$809,150$188,000
PIMA$420,680$538,650$651,050$809,150$285,000
PINAL$441,600$565,300$683,350$849,250$384,000
SANTA CRUZ$420,680$538,650$651,050$809,150$197,000
YAVAPAI$420,680$538,650$651,050$809,150$329,000
YUMA$420,680$538,650$651,050$809,150$185,000

How are FHA loan limits determined?

The FHA loan limits typically change every year, and are based on a percentage of the conforming loan limits published by the Federal Housing Finance Agency (FHFA) for conventional loans. The limits reflect changes in the average U.S. home price over the past year and include limits for low-cost and high-cost areas.

Here’s how the calculations work:

The 2022 low-cost limit or “floor” is $420,680 for a single-family home and is 65% of the national conforming loan limit of $647,200. If you’re buying a multifamily home, the low-cost limits increase with each unit:

  • $538,650 for a two-unit home
  • $651,050 for a three-unit home
  • $809,150 for a four-unit home

If you’re buying a home near an expensive part of Arizona, the high-cost limits are slightly higher than the low-cost limits. Here are the single-family limits for the three Arizona high-cost counties:

  • $423,200 Coconino
  • $441,600 Maricopa
  • $441,600 Pinal

How to qualify for an FHA loan in Arizona

FHA loans may be a good choice if you’re having trouble qualifying for a conventional mortgage because you have lower credit scores or too much debt compared to your income. With the median home price topping out at $384,000 for the most expensive county in Arizona, the current $420,680 limits should be enough.

Here’s a breakdown of the most current requirements to qualify for an FHA loan in Arizona:

Down payment and credit score. With a 580 credit score, you’ll need a 3.5% down payment. The money can come from friends, family and even employers. It’s possible to get approved for an FHA loan with a score as low as 500 and a minimum 10% down payment.

Debt-to-income (DTI) ratio. FHA lenders measure how much monthly debt you carry compared to your income to calculate your DTI ratio. The DTI ratio maximum in most cases is 43%, but exceptions may be made with strong credit scores or extra cash reserves.

Mortgage insurance. You’ll pay two types of FHA mortgage insurance to protect lenders in case you default. The first is an upfront mortgage insurance premium (UFMIP) of 1.75% of your loan amount, which is usually added to your mortgage balance. The other is an annual mortgage insurance premium (MIP) of 0.45% to 1.05% of the loan amount, divided by 12 and added to your monthly payment. One note about FHA mortgage insurance: You’ll pay it regardless of your down payment amount.

Occupancy. You’re required to live in the home for at least a year if you purchase it with an FHA loan. The program doesn’t allow financing on second homes or rental properties.

FHA home appraisals. The FHA requires an appraisal for any purchase loan, and FHA appraisal guidelines are stricter than conventional loans.

Buying a multifamily home with an FHA loan

You may be able to buy a multifamily home with a 3.5% low down payment, and use the rental income to help you qualify (conventional guidelines typically require at least 15% down for multifamily purchases). As long as you plan to live in the home for at least 12 months after you purchase it, you can use the higher multifamily FHA loan limits to buy up to a four-unit home. The rent collected from the other units can be added to your qualifying income.

FHA lenders in Arizona

Lender nameLT ratingMinimum FHA credit score
Veterans United 10/10620
Lower10/10580
Rocket Mortgage9.5/10580
Fairway Independent Mortgage8/10600
AmeriSave Mortgage8/10600

 

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