Arizona FHAHome Loans for 2026

For borrowers with a credit score, FHA generally allows a 3.5% minimum down payment with a qualifying score of at least 580. Scores of 500–579 are limited to 90% loan-to-value, generally requiring at least 10% down. FHA also permits certain borrowers without a traditional credit score to qualify through manual underwriting. Lenders may set stricter requirements, and meeting a score threshold does not guarantee approval.

For an eligible FHA purchase with a qualifying credit score of at least 580, the minimum investment is generally 3.5% of FHA’s adjusted value—usually the lower of the appraised value or purchase price after required adjustments. Scores of 500–579 generally require at least 10% down. Closing costs and prepaid expenses are additional.

Example: If the purchase price and appraised value are both $300,000, a 3.5% down payment is $10,500. With $7,000 in closing costs and prepaids, a $2,000 permitted seller credit, and a $3,000 earnest-money deposit already paid, the remaining cash to close would be $12,500. This illustration assumes upfront FHA mortgage insurance is financed; your actual charges, credits and adjustments will differ.

If the appraisal is lower than the price and the seller does not reduce the price, you may need additional cash to cover the gap. Eligible gifts may cover the full minimum investment, but the lender must document the donor, gift letter and transfer of funds. Check the cash-to-close figure on your Loan Estimate and final Closing Disclosure, rather than budgeting for the down payment alone.

Debt-to-income (DTI) ratios compare monthly payments with qualifying monthly income. The housing ratio measures the proposed housing payment; the total-debt ratio includes housing plus other counted monthly debts.

Example: With $6,000 in qualifying monthly income, a $1,800 housing payment and $600 in other counted debt payments, the ratios are 30% for housing and 40% for total debt. This illustrates the math, not an approval decision.

For manual underwriting, FHA’s standard ratios are 31% housing and 43% total debt. Borrowers with a qualifying score of at least 580 may qualify for higher ratios under specific rules; the 40% housing/50% total-debt limit requires two documented compensating factors. Loans evaluated through an automated underwriting system using FHA’s TOTAL Mortgage Scorecard follow its findings and applicable FHA rules. Lenders may apply stricter limits.

Possibly. The waiting period and documentation depend on the event:

Chapter 7 bankruptcy: FHA generally requires two years from discharge to FHA case-number assignment. A shorter period of at least 12 months may be considered for documented circumstances beyond your control and responsible financial management afterward.

Chapter 13 bankruptcy: You may qualify during the repayment plan after at least 12 months of satisfactory, on-time payments and written bankruptcy-court permission.

Foreclosure or deed-in-lieu: The usual waiting period is three years from the ownership transfer to case-number assignment, with limited documented exceptions.

Manual underwriting and lender requirements may apply. Ask the lender to review the discharge, repayment or ownership-transfer documents before relying on an estimated eligibility date.

Yes. FHA generally looks for at least two years of self-employment. One to two years may be acceptable if you previously worked in the same field or a related occupation for at least two years.

The lender evaluates stable qualifying income from your tax returns and business records; business revenue alone does not establish the income you can use to qualify.

Ask for a checklist tailored to your business. It may include personal tax returns, relevant business tax returns, a current profit-and-loss statement and a balance sheet. Requirements and exceptions depend on the underwriting method, timing and business structure. Prepare records that let the lender compare your recent business performance with prior years.

For FHA case numbers assigned in 2026, one-unit limits are $541,287 in 12 Arizona counties, including Pima; $557,750 in Maricopa and Pinal; and $609,500 in Coconino, the highest in Arizona. Two- to four-unit properties have higher limits. The county table lists all four property sizes for every Arizona county.

These limits cap the base mortgage, not the purchase price. Financed upfront FHA mortgage insurance may be added as FHA permits. HUD sets limits using area home prices and a statutory floor and ceiling; counties in the same metropolitan area may share a limit. Use the property’s county and unit count rather than estimating a limit from local prices.

Yes. A condo can qualify if it is in an FHA-approved project or meets FHA’s Single-Unit Approval requirements. Single-Unit Approval has project and unit conditions, so it is not available for every unapproved condo. Qualifying site condominiums follow a separate FHA exception and do not need project approval or Single-Unit Approval. Have your lender verify the property’s eligibility before you commit.

FHA mortgage insurance protects the lender against default losses. For a typical FHA purchase, the upfront premium is 1.75% of the base loan amount and may be financed. A 30-year loan with 3.5% down and a base amount of $726,200 or less has an annual MIP rate of 0.55%, paid monthly. Other terms, loan amounts and down payments can have different rates.

Example: On a $300,000 base loan—not a $300,000 purchase price—upfront MIP is $5,250. Financing all of that premium makes the starting loan balance $305,250. Dividing $300,000 × 0.55% by 12 gives a rough monthly MIP estimate of $137.50. HUD’s actual calculation uses the scheduled average outstanding balance, so this is not an exact monthly quote or a lifetime total.

MIP is only one part of the payment. Budget for principal, interest, property taxes, homeowners insurance and any applicable association dues as well. Use your Loan Estimate to compare the full payment and cash needed at closing.

For a new FHA purchase, annual MIP generally lasts 11 years when the original loan-to-value ratio is 90% or less, and for the mortgage term when it is above 90%. It does not automatically disappear when you later reach 20% equity. Paying off the FHA loan—including through a sale or refinance—ends that loan’s FHA insurance. A conventional refinance may be possible before you have 20% equity, but it generally requires PMI at higher loan-to-value ratios. Compare eligibility, interest rate, insurance and closing costs before refinancing.

The timeline depends on your lender, documents, appraisal, property condition and any remaining underwriting conditions. Preapproval is a preliminary assessment, not final loan approval. Ask us for an estimate based on your specific file and purchase contract. You generally must receive your Closing Disclosure at least three business days before closing.

Yes. An eligible FHA loan may qualify for an FHA Streamline Refinance, which generally reduces documentation and does not require a new appraisal. Payment-history, seasoning and net-tangible-benefit rules apply; FHA offers credit-qualifying and non-credit-qualifying options. A conventional refinance may also be possible if you qualify. Compare the new rate, mortgage insurance and closing costs. Approval and savings are not guaranteed, so choose a purchase payment you can afford without relying on a future refinance.