FHA Home Loans in Arizona
Phoenix and Tucson are two of the most active FHA markets in the West, and Arizona charges no transfer tax and no mortgage tax, and the down payment can be a gift from family. We are licensed as an Arizona mortgage banker and broker and are licensed statewide, in all 15 counties.
Arizona Mortgage Banker License 1029604 and Mortgage Broker License 1021032. NMLS #1925352.
FHA in Arizona, 2026
Maricopa and Pinal
$557,750
Coconino (Flagstaff)
$609,500
Pima and every other county
$541,287
Down payment
3.5% with a 580 score
Transfer and mortgage tax
None
$557,750
FHA limit in Maricopa and Pinal counties
3.5%
Down payment from a 580 credit score
$0
Arizona transfer and mortgage tax
15
Arizona counties, licensed statewide
Why FHA and Arizona suit each other.
Metro Phoenix grew faster than almost anywhere in the country, and a large share of that growth was financed with FHA loans: buyers moving in from California with good income and little saved, first-time buyers in Mesa, Chandler, Gilbert and the West Valley, and families in Tucson and Pinal County. The 2026 limit is $557,750 across Maricopa and Pinal, $609,500 in Flagstaff’s Coconino County and $541,287 everywhere else, which covers most of the homes those buyers are looking at.
Arizona also keeps FHA closing costs down. There is no transfer tax and no tax on the mortgage, closings run through an escrow company rather than an attorney, and by custom the seller pays for the owner’s title policy. What Arizona adds instead is the homeowners association: most metro subdivisions have one, the dues count in your debt ratio, and state law requires a disclosure packet before closing.
This page covers FHA as it works in Arizona. For the state as a whole, including our Arizona licences, closing customs and every loan we offer here, see our Arizona page; for the program itself, see the FHA hub. Veterans should read VA loans in Arizona first; with Luke, Davis-Monthan, Yuma and Fort Huachuca, many Arizona FHA applicants are eligible for the better program.
Three ways to use FHA in Arizona.
Buying, lowering the payment on an FHA loan you already have, or pulling equity out. With no mortgage tax, each of them costs less to close here than in most states.
Buying
FHA purchase
3.5 percent down from a 580 score, or 10 percent from 500, with a documented gift from family allowed for the down payment. Sellers can pay up to 6 percent of the price toward closing costs, and Arizona’s new-construction builders often do, which can cover the upfront mortgage insurance and prepaid taxes and insurance.
Lower payment
FHA Streamline refinance
Replace an existing FHA loan at a lower rate with no appraisal and, in most cases, no income verification. Arizona charges no tax on the new mortgage, so the break-even is shorter here than almost anywhere; the costs are the lender’s, the escrow company’s and the new upfront premium, part of which is refunded from the old one.
Use equity
FHA cash-out refinance
Borrow up to 80 percent of the home’s value and take the difference in cash on FHA credit terms. Arizona owners use it for a roof or HVAC before the summer, a pool, or debt consolidation, and with no mortgage tax the closing costs are mostly the lender’s fees.
FHA rules, and how they play out in Arizona.
HUD sets the program rules; lenders add overlays; Arizona adds very little cost but a few customs. Your pro tells you where your file lands. The loan limits on this page are HUD’s 2026 figures; they vary by county and unit count and are updated each year.
| Item | FHA rule | In Arizona |
|---|---|---|
| Minimum down payment | 3.5% with a 580 credit score; 10% from 500 to 579 | A documented gift from family can supply all of it |
| Upfront mortgage insurance | 1.75% of the loan, usually financed into it | Usually financed; with no mortgage tax, financing it costs nothing extra at closing |
| Annual mortgage insurance | 0.55% a year on a 30-year loan with less than 5% down (0.50% with 5% or more); for the life of the loan below 10% down, 11 years otherwise | Escrowed monthly with Arizona property taxes, paid in two halves due October 1 and March 1, and homeowners insurance |
| Debt-to-income ratio | Up to about 50% with compensating factors | HOA dues count in the ratio; most metro Phoenix and Tucson subdivisions have them, so we ask for the figure on the first call |
| Down payment source | Savings or documented gift funds from family | Gift funds need a gift letter and a paper trail before closing |
| Seller contributions | Up to 6% of the price toward closing costs | The seller customarily pays the owner’s title policy in Arizona, so concessions go further toward your other costs |
The 2026 one-unit FHA limit is $557,750 in Maricopa and Pinal counties, $609,500 in Coconino, and $541,287 in Pima and every other Arizona county.
Buying new construction with FHA in Arizona.
A large share of Arizona’s FHA purchases are new builds in the West Valley, the East Valley and Pinal County. FHA accepts new construction with the builder’s warranty and the required inspections, and builders often offer closing-cost credits tied to their preferred lender. We price the builder’s offer against ours side by side so you can see which one actually costs less.
The closing runs through an Arizona escrow office, funds release when the deed records, and there is no transfer or mortgage tax, so the upfront mortgage insurance and prepaid taxes and insurance are the main items on the statement.
Statewide, remotely
FHA loans closed through an Arizona escrow office near you, wherever in the state the home is.
Six Arizona details that decide an FHA approval.
None of these are in the national FHA guide. All of them come up on Arizona files.
01
HOA disclosure and dues
Arizona law requires the association to deliver a disclosure statement before closing, and the dues count in your debt ratio. Transfer and capital contribution fees are usually a buyer closing cost.
02
The FHA appraisal in the desert
FHA appraisers check condition as well as value. In Arizona that means the roof, the air conditioning, evidence of water damage from monsoon season, and pool safety barriers where a pool exists; we tell sellers what to expect.
03
Escrow and dry funding
An escrow company closes the file and the lender releases funds after the deed records, normally the same morning. Keys come once escrow confirms recording, so closings are scheduled early in the day.
04
No transfer or mortgage tax
The deed records for a flat county fee, and the Affidavit of Property Value filed with it is required by law but carries no tax. FHA closing costs in Arizona are mostly the lender’s and the escrow company’s fees.
05
Property taxes in two halves
Paid in arrears, due October 1 and March 1. The seller credits you their share at closing and the escrow is yours after that.
06
Mortgage insurance for life
With less than 10 percent down the annual premium stays for the life of the loan. The usual exit is a conventional refinance at 20 percent equity, and with no mortgage tax that refinance is cheap in Arizona.
What would an FHA payment be in Arizona?
Choose FHA as the loan type and set the down payment to 3.5 percent. Add your county’s tax rate, insurance and the HOA dues; the mortgage insurance line is the cost you are weighing against buying now.
The U.S. FHA market right now.
National average rates from the Federal Reserve Bank of St. Louis FRED database: the Freddie Mac survey for conventional and the Optimal Blue indices for FHA and VA, shown as third-party market benchmarks, not MortgagePros pricing. FHA note rates often look lower than conventional, but mortgage insurance is part of the real payment, so compare the whole payment rather than the rate.
FHA 30-year fixed, U.S. average
7.18%
Conventional 30-year fixed, U.S. average
7.40%
VA 30-year fixed, U.S. average
7.09%
Sources: Freddie Mac Primary Mortgage Market Survey (conventional, 30-year national average, week of Oct 8, 2026) and Optimal Blue Mortgage Market Indices (FHA and VA, 30-year national averages as of Oct 8, 2026), distributed through FRED, Federal Reserve Bank of St. Louis; the figures and dates refresh automatically from the source. These are third-party market benchmarks, not MortgagePros rates and not an offer of credit. Your rate and APR depend on your credit, loan type, property and lock date.
How an FHA loan works with us in Arizona.
Four steps, one licensed pro, and a closing through an Arizona escrow office near you.
1
Check the fit
A short call about your credit, savings and where you are buying. We tell you whether FHA, a conventional 3 percent down loan or a VA loan is the better route.
2
Pre-approval with real numbers
Income, assets and credit verified, with Arizona taxes, insurance and the HOA dues already in the payment.
3
Property and association checks
We order the HOA disclosure early, confirm any condo is on HUD’s approved list, and flag likely appraisal items so nothing stalls after you are under contract.
4
Close through escrow
Signing happens at an Arizona escrow office near you or with a mobile notary. Funds release when the deed records, usually the same morning.
Ready to see what FHA gets you in Arizona?
An Arizona-licensed pro quotes your FHA options with taxes, HOA dues already in the numbers. Free, and it starts without a hard credit pull.
FHA in Arizona, answered.
The questions Arizona buyers ask us about FHA loans most. If yours is not here, a licensed pro will answer it directly, with no obligation.
What is the FHA loan limit in Phoenix and Tucson?
For 2026, $557,750 for a one-unit home in Maricopa County, which covers Phoenix, Scottsdale, Mesa, Chandler, Gilbert, Glendale and Peoria, and in Pinal County. Pima County, including Tucson, is at the national floor of $541,287, as is every other county except Coconino, where Flagstaff prices put the limit at $609,500. Two- to four-unit limits are higher.
Are there any Arizona taxes on an FHA loan?
No. Arizona has no transfer tax on the sale and no tax on recording the mortgage. You pay a flat county recording fee and file an Affidavit of Property Value with the deed. It is one of the reasons an FHA Streamline refinance pays for itself faster in Arizona than in most states.
What does the HOA have to do with my FHA approval?
Lenders count the dues in your debt ratio, and for a condo they also review the association’s budget and insurance. Arizona law requires the association to deliver a disclosure packet before closing, and transfer fees are usually a buyer cost. Tell us the dues on the first call and the pre-approval will already reflect them.
Does the mortgage insurance ever go away?
With 10 percent or more down, after 11 years. With less than 10 percent down, no: it stays for the life of the loan. The usual exit is refinancing into a conventional loan once you have 20 percent equity, and in Arizona that refinance costs little to close.
Do I have to come to Michigan?
No. Your licensed pro handles the loan by phone, email and e-signature, and the closing runs through an Arizona escrow office near you or with a mobile notary. Our Arizona licences are what allow us to lend and broker here.
Talk to a Arizona-licensed pro about FHA.
Tell us what you are looking to do and where in Arizona. A licensed pro will call back, usually the same business day. Asking does not start a loan or require a hard credit pull.
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