Maricopa County FHA Loan Limits – A Guide to Homebuying in Arizona
In Maricopa County, FHA loan limits represent the maximum amount that buyers can borrow under this federally backed program. These limits are adjusted annually based upon local housing costs and allow low-to-moderate income homebuyers an affordable pathway into homeownership.
The 2024 FHA loan limit in Maricopa County Arizona is $530,150 for a single family home, condo, townhome, or manufactured home. The new loan limit applies to any FHA case number assigned to a loan application on or after January 1, 2024.
Maricopa County FHA Loan Limits for 2024
The FHA loan limit is the maximum loan amount possible for each county in the United States. The limits are set based upon the average home sales cost in the area. The limits also step up and are higher for 2 family, 3 family and 4 family homes.
Each year the loan limits are re-evaluated for each county and new limits are established for the following year. For 2024, the loan limits for an FHA loan in Maricopa County are as follows:
| Single Family | 2 Family | 3 Family | 4 Family |
| $530,150 | $678,700 | $820,350 | $1,019,550 |
An important thing to keep in mind is these are maximum loan amounts for an FHA loan. Borrowers will still need to qualify for the loan amount they are looking for. If you make a lot of money and can afford a much more expensive home, you still cannot exceed the limits referenced above.
If you need a larger loan amount, consider waiting until the end of the year when the new limits for the following year are announced.
Click to speak with an FHA loan professional who can answer questions and help with your prequalification letter.
You can also see the loan limits for every county in the US here.
How FHA Loans Benefit Maricopa County Homebuyers
One of the most significant advantages of an FHA loan is the low down payment requirement of just 3.5%. This lower down payment makes it much easier for individuals to purchase a home, especially for first time home buyers.
In addition to the low down payment, FHA loans also allow for lower credit scores than conventional mortgages. This crucial feature provides an opportunity for those with lower credit scores to qualify for a home loan. For many aspiring homeowners in Maricopa County, this flexibility can be a game-changer as it opens up the possibility of securing a mortgage even with less-than-ideal credit.
Another attractive aspect is the competitive interest rates associated with FHA loans. Homebuyers in Maricopa County can benefit from these competitive rates which can allow them to qualify for a larger loan amount or to have lower payments.
Read more about FHA Loans in Arizona.
FHA Loan Application Process
Applying for an FHA loan is a simple and straightforward process, but it does require some organization and attention to detail. Here are the key steps to keep in mind when applying for an FHA loan.
Gather Necessary Documents
Before even thinking about searching for lenders or starting application paperwork, it’s crucial to gather essential documents. The plus side is that you will have already done most of the hard work when it comes to paperwork and documentation later in the process.
You will need:
- W-2 forms – last two years
- Tax returns – last two years
- Pay stubs – last 30 days
- Bank statements – last two months
Your tax returns provide proof of your income, while your bank statements show the lender how much money you have saved. Being well-prepared makes for a smooth ride later on. Begin gathering electronic copies of these documents now to save time when completing a loan application.
Getting Pre-Approved for an FHA Loan
Prior to shopping for a home or just looking at homes online, you really need to know how much home you can afford. This is why you need to get pre-approved for an FHA loan first.
It is as simple as completing the application, providing the documents requested by the loan officer, and your pre-approval can be issued the same day. Most real estate agents will ask for this pre-approval before touring homes with you. This is another reason to get this done first.
We can help you to start your pre-approval process here with one of our loan officers.
Frequently Asked Questions
How often do the FHA loan limits change?
The FHA loan limits in Maricopa County can change annually based on the Federal Housing Administration’s assessment of the housing market. These changes are influenced by factors such as median home prices and local market conditions. HUD establishes new limits every year. It is important for homebuyers to stay updated on these changes to make informed decisions about their home purchases.
What factors determine the FHA loan limits?
The FHA loan limits in Maricopa County are determined by various factors, including the median home price in the area and the conforming loan limits set by Fannie Mae and Freddie Mac. Additionally, the Department of Housing and Urban Development (HUD) also considers local market conditions and economic trends to establish the loan limits.
How does Maricopa County compare to limits in other counties in Arizona?
In Maricopa County, the FHA loan limits are generally higher compared to other counties in Arizona. This is because Maricopa County has a higher median home price and a larger population and as a result is considered to be a “high cost area”. There are only three counties in Arizona with higher loan limits. All other counties have a lower median home price and as a result the loan limits are set at the FHA standard limit.
Are there any grants or down payment assistance programs available in Maricopa County?
There are several grants and down payment assistance programs available specifically for FHA loans in Maricopa County. One of the notable options is the Home Plus Program offered by the Arizona Department of Housing, which provides down payment assistance up to 5% of the loan amount.
Another program is the Pathway to Purchase Down Payment Assistance Program, which offers up to 10% of the loan amount as a second mortgage to cover down payment and closing costs.
These programs aim to make homeownership more affordable and accessible for low-to-moderate income individuals and families in Maricopa County. We also have lender provided down payment assistance which becomes part of your overall loan package and is much easier to obtain. Contact us here to learn more.
What if I qualify for a higher loan amount?
Many individuals can afford a home that costs much more than the FHA loan limit in that county. However, regardless of how much you can actually qualify for, your loan amount cannot exceed the FHA loan limit.
Are there any special exceptions or considerations?
There are no exceptions to the established loan limits other than higher limits when purchasing a multi family home. Aside for the loan limits, special lenders offer exceptions to things like the bankruptcy waiting period or length of time you have spent in your current job.