If you don’t meet the down payment or credit requirements of conventional mortgages, you still have a shot at homeownership thanks to the Federal Housing Administration (FHA). Many hopeful Arizona homebuyers can qualify for FHA loans even if their credit isn’t perfect or they can’t put as much down as they’d like.
That said, these mortgages come with restrictions of their own. Understanding the FHA loan limits, especially the ceiling on how much you can borrow in a given area, will help you streamline your house-hunting. You’ll have a better chance of finding a home that meets your budget but doesn’t make you lower your expectations.
What are the FHA Loan Limits in Arizona?
This can be a tricky question to answer for some states, but it’s a little easier to explain Arizona’s FHA mortgage loan limits.
The agency decides on new baseline borrowing limits each year for one-, two-, three-, and four-family homes. For 2025, these are:
Technically, these apply nationwide, and in Arizona, those are the limits in 12 of the state’s 15 counties (all except Maricopa, Pinal, and Coconino).
The FHA acknowledges that costs of living can vary quite a bit from place to place. As such, in some states, the one-family home FHA limit can be in the $900,000 range for one county but fall back to the $524,225 ceiling in another nearby county. (You can use the FHA’s search tool to find exact limits on a county-by-county basis.)
In the three Arizona counties with limits above the national standard, the FHA loan limits for one-family and two-family homes are:
The first two of those counties fall into the Phoenix-Mesa-Chandler metropolitan statistical area (MSA), while Coconino is part of the Flagstaff MSA. It’s only natural that the borrowing limits are a little higher there. (Keep in mind, there can be pretty big differences in property values within those large areas. Certain homes in or around Flagstaff and Phoenix are far ahead of the FHA maximum for Coconino and Maricopa counties, for instance.)
What Determines FHA Loan Limits?
The first deciding factor in nationwide FHA mortgage loan limits doesn’t come from the FHA at all, but rather the Federal Housing Finance Agency (FHFA). This department must first set the conforming loan limits (CLLs) for conventional mortgages each year: currently $806,500 for single-family properties or $1,209,750 in high-cost areas. (Under FHFA regulations, “high-cost areas” have a local median home value equal to 115% of the baseline limit, so the agency caps the CLL at 150% of the baseline in these areas.)
Properties valued greater than those figures can’t be purchased by Fannie Mae or Freddie Mac. As such, it makes sense that the FHA wouldn’t back a mortgage on a property that only a jumbo loan could finance.
From there, the FHA determines its “floor” limit (in this case, the $524,225 one-family home figure) based on 65% of the FHFA’s CLL baseline.
Other Factors Affecting FHA Loan Limits
The FHA limit that applies in most Arizona counties doesn’t guarantee you’ll get that much in an FHA loan.
For example, if your credit score is between 500 and 579, you’re only eligible for 90% loan-to-value (LTV) financing. Based on 2025’s numbers, if you wanted a loan for a house valued at the FHA limit, you’d get $471,802.50, and you’d have to pay 10% down.
Can You Have Two FHA Loans?
Generally speaking, no. You certainly can’t finance one property with two loans. Also, you usually have to sell an FHA-insured home before you can get a new loan from the agency for your next property.
There are some exceptions, but all of them apply to existing FHA mortgage borrowers, not new homebuyers.
Find Your FHA-Backed Arizona Home
Because most of Arizona is subject to the nationwide baseline FHA loan limit, you should be realistic in your home search. Don’t look for a new house that’s beyond your means. Also, remember that the maximum FHA financing for homebuyers with credit scores of 580 or greater is 96.5% of a home’s value.
Fortunately, house-hunting in Arizona was smart on your part. A cursory look at just about any real estate listing website will show plenty of properties priced below the FHA limit, including in Phoenix, Mesa, Glendale, Tucson and other notable cities.
You don’t have to manage this search on your own. The pros at Scout Mortgage can help you get favorable FHA-backed financing for an Arizona house you can truly make a home. Connect with our experts to learn more.
