FHA loans in Arizona

With a warm climate and a growing economy, Arizona has become a popular market for aspiring homeowners. According to Redfin, the median sale price for a home in Arizona in December 2025 was $448,500, about 4.7% above the national average.

That’s where FHA loans can help. Backed by the government, FHA loans can make buying a home more affordable, especially if you have a lower credit score. If a low down payment and flexible qualifying rules sound helpful, Rocket Mortgage offers FHA loans. Here’s what you need to know about FHA loans.

What are FHA loans?

FHA loans are government-backed mortgages for borrowers that offer low down payments, low closing costs, and easy credit qualification. FHA loans in Arizona are insured by the Federal Housing Administration, which means the agency reimburses lenders if the borrower defaults. This backing helps lenders offer FHA loans to borrowers who may not qualify for a conventional loan.

How do FHA loans work?

FHA loans have specific rules that help make them more accessible than many conventional options. FHA loan requirements in Arizona include steady income, a minimum credit score requirement, a minimum down payment, property requirements, and a maximum loan amount that varies by county. FHA loan rates are competitive and often lower than for other loan types.

FHA loan limits are set each year by the U.S. Department of Housing and Urban Development, and vary by county within each state, including Arizona.

An Arizona FHA loan can be used to buy various property unit types from single-family homes to multifamily properties with up to 4 units, including houses, condominiums, townhouses, and manufactured or mobile homes.

Properties must meet FHA guidelines, and borrowers must pay an up-front and an annual mortgage insurance premium (MIP). This insurance protects the lender if the borrower defaults and is part of what allows lenders to approve buyers with lower credit scores or smaller down payments.

Anyone who meets the requirements and agrees to live in the home they're buying as their primary residence can qualify for an FHA loan.

FHA also offers 203(k) rehab loans to finance home renovations and repairs. Rocket Mortgage currently does not offer FHA 203(k) loans.

FHA loans can also be used to refinance.¹ Refinancing might help you reduce your interest rate and monthly payment, or switch from an adjustable-rate to a fixed-rate mortgage.

FHA refinancing options include:

• FHA Streamline refinance.² Requires less documentation and may not need an appraisal.
• FHA rate-and-term or cash-out refinance. Provides flexibility to adjust loan terms or tap home equity.

For veterans and service members, additional refinance programs may be available through VA loan options.

How 2026 FHA loan limits work in Arizona

FHA loan limits in Arizona change every year and vary by county based on local housing prices. Areas with higher home values qualify for higher limits, while lower-cost counties stay closer to the national floor.

The limits are based on median home prices in each county, up to 150% of the national conforming loan limit. Exceptions are made for homes in Alaska, Hawaii, Guam, and the U.S. Virgin Islands due to the higher construction costs.

For 2026, the FHA loan limits for a one-unit home range from $541,287 in low-cost areas to $1,249,125 in high-cost counties.

Here are the FHA loan limits by county in Arizona for buying 1- to 4-unit homes.

Use the HUD lookup tool to confirm your county’s current limit, then speak with a loan officer to see what you can qualify for.

FHA loan requirements

FHA loan requirements in Arizona can vary by lender. The guidelines below reflect what you can generally expect through Rocket Mortgage. It's always best to check with your FHA lender to confirm the exact qualifications for your situation.

The chart below outlines what you’ll usually need to qualify for an FHA mortgage in Arizona, including the minimum down payment, credit score, debt-to-income ratio (DTI), income, appraisal, and inspection, and more.

FHA loan down payment assistance programs in Arizona

If you’re looking at buying a home in Arizona, there are down payment assistance programs that can help. Each program requires you to complete an online home buyer education course. You also can reach out to a HUD-approved housing counselor for one-on-one support.

For buyers using an FHA loan through Rocket Mortgage, the information below breaks down the main down payment assistance programs available in Arizona.

Home Plus DPA Program

Home Plus gives Arizona home buyers money for their down payment or closing costs. The down payment assistance program is self-funded, which means it brings in its own funding through the money it raises and the income it makes, instead of using tax dollars. Through the Home Plus program, you can get up to 4% of the home's purchase price in financial assistance. To be eligible, you must meet three requirements:

• Have a credit score of 620 or above.
• Earn less than $146,503.
• Complete the required home buyer education course.

To apply, your lender can walk you through the process.

Home in 5 Advantage program

The Home in 5 Advantage program helps home buyers with a down payment and closing costs through a partnership between Maricopa County and the city of Phoenix.

If you qualify, you can receive up to 6% of the home's purchase price in financial support to help cover up-front costs, along with a competitive interest rate on your loan.

You'll need to meet a few eligibility requirements to qualify, which include:

• Have at least a 640 credit score or above.
• Earn less than $153,440.
• Have a DTI below 50%.
• Move into your new home within 60 days of closing.
• Buy a home, condo, or townhome in Maricopa County.

Keep in mind, this program is only for home purchases and can't be used to refinance your existing mortgage.

Pima Tucson Homebuyer Solution Program

The Pima Tucson Homebuyer Solution Program is another down payment and closing cost assistance program that's offered in Pima County, including the city of Tucson. For buyers who qualify, you can get up to 5% of the purchase price of your home to help cover up-front costs.

Here’s what you need to qualify:

• A minimum credit score of 640.
• A DTI at or below 45%.
• Plan to live in the home as your primary residence.
• Move into your house within 60 days of closing.

Also, while this program doesn’t have a set income limit for every household, your income must fall below the limit for your specific loan type to qualify.

Pros and cons of buying a home in Arizona with an FHA loan

While FHA loans make homeownership possible for buyers who may struggle to qualify for conventional financing, they also come with drawbacks. Let's break down the pros and cons of using an FHA loan.

Pros

For the right Arizona buyer, FHA loans can offer a variety of benefits, including:

• A low down payment. If you have a credit score of 580 or higher, you can put down as little as 3.5%. A low down payment requirement can make it more realistic for many buyers, especially first-time Arizona buyers, to afford a home.
• Down payment assistance. Arizona offers programs through the Arizona Housing Finance Authority and local city or county partners that can help cover part of your down payment and closing costs.
• Seller contributions. FHA loans let sellers cover up to 6% of your closing costs. This can be a big help if the seller agrees to chip in to offset some of the upfront expenses of buying a home.
• Flexible lending requirements. FHA loans are generally more flexible, giving lenders room to work with borrowers who have higher DTI or unique income sources – helping more people qualify for a home loan.

Cons

While FHA loans offer flexibility for buyers who qualify, there are trade-offs to consider, including:

• MIP. With FHA loans, you're required to pay MIP as part of your financing agreement. You’ll also pay an up-front MIP of 1.75% of your loan amount, which applies nationwide, including in Arizona. If you're able to put down at least 10%, you can request that the MIP be removed after 11 years. Otherwise, you pay MIP for the entire loan term.
• Property standards. In addition to meeting the borrower requirements, the home itself also must meet FHA inspection standards. The FHA uses these standards to make sure the property is safe and in good condition. This can be a challenge at times, especially with Arizona's extreme heat. Such severe weather conditions can cause additional wear and tear on roofing, HVAC systems, and exterior materials, which an FHA appraiser will consider.
• Primary residence only. You can’t use an FHA loan to buy an investment property or vacation rental. This means you must use the home as your primary residence and live there full-time.

FAQ

Still have questions about FHA loans in Arizona? Here’s a quick look at some of the most common ones buyers ask.

Is it hard to get approved for an FHA loan?

FHA loans were designed for buyers with limited savings or those who are building credit. As long as you can show steady income, keep your DTI within lender limits, and pay MIP, you have a good chance of qualifying.

What is today’s FHA mortgage rate?

For the most accurate and up-to-date information, you can visit the Rocket Mortgage FHA loan rates page.

Why would you be denied an FHA loan?

There are a few common reasons buyers get denied, such as having a high DTI, limited credit history, unverifiable income, or choosing a home that doesn't meet FHA property standards. To increase your chances of qualifying, ensure your finances are in good shape and choose a property that meets all FHA requirements.

Can you refinance an FHA loan?

Yes, you can refinance your FHA loan, as long as you meet the requirements. It’s a common move for borrowers who are looking to lower their interest rate, ease monthly payments, or borrow their home's equity for updates. Depending on your situation, you can choose an FHA Simple Refinance or an FHA Streamline Refinance.

Can you convert your FHA loan to a conventional loan?

Yes, you can, but only after you've built up enough equity in your home and meet the lender's conventional loan requirements. You'll do this by refinancing your FHA loan into a conventional one. Refinancing can help you remove MIP and lower your monthly payments, making repayment more manageable.

What’s the difference between FHA loans and loans backed by Fannie Mae or Freddie Mac?

FHA loans are intended to help buyers who may not have strong credit or much money saved for a down payment. Because the government backs these loans, lenders won't lose as much money if a borrower defaults on payments, so they're more willing to approve FHA loans.

Fannie Mae and Freddie Mac are government-sponsored enterprises. They don't insure loans. Instead, they buy conforming conventional loans from lenders. Buying these loans helps lenders keep money available to make more loans and, in turn, keep the mortgage market steady. Since the government doesn’t insure conventional loans, lenders take more risk. That’s why they usually ask for a higher credit score and a bigger down payment. And in many cases, you’ll need to pay for private mortgage insurance if your down payment is under 20%.

The bottom line: Using an FHA loan to buy a home in Arizona

Even if you don't have a big down payment saved up or your credit isn't perfect quite yet, FHA loans can still make it possible to buy a home in Arizona. Flexible requirements can take some of the pressure off and make the process feel much more doable. Plus, if you need some extra assistance affording your down payment and closing costs, Arizona has programs that can help.

So, if you’re ready to find the right home in this southwestern, sunny state, you can explore your FHA loan options and get started with Rocket Mortgage.

Rocket Mortgage is a trademark of Rocket Mortgage, LLC or its affiliates.

¹ Refinancing may increase finance charges over the life of the loan.

²The FHA Streamline program may have stricter requirements in some states. In order to qualify for the FHA Streamline program, an immediate .5% minimum reduction in interest and mortgage insurance premium is required. Some states may require an appraisal.

³To qualify for this offer, you must meet all standard FHA eligibility requirements. In addition, your total mortgage payment, including taxes and insurance, cannot exceed 38% of your income, your debt-to-income (DTI) ratio cannot exceed 45%, and you must have 12 months of verifiable housing history immediately prior to your application, no late payments 30 days or greater in the last 12-months, and no derogatory marks on your credit report. Not available on jumbo loans. Asset statements may be needed, no more than 1 day of non-sufficient fund fees are allowed in the most recent 2 months prior to application. Additional restrictions/conditions may apply.

Rocket Mortgage is a trademark of Rocket Mortgage, LLC or its affiliates.