Arizona MLS Real Estate Search

Everything You Need to Know About FHA loans in Arizona

What is an FHA loan?

FHA loans continue to be a popular loan program for home buyers in Arizona and are commonly used in combination with down payment assistance programs. FHA loans are administered by the Federal Housing Administration (FHA), a government agency created in 1934 to offer mortgage insurance that would insure banks against losses from home loan defaults. Since 1965, the Federal Housing Administration has been part of the Department of Housing and Urban Development.

Because of the mortgage insurance offered by FHA, FHA loans present less risk to lenders. As a result, it has traditionally been easier to be approved for FHA loans than other loan programs. What’s more, lower risk allows lenders to offer FHA loans with low interest rates in Arizona and the rest of the country. As a result, FHA loans, with their many features and benefits, are a popular option for first time home buyers.

Do I have to be a first time home buyer to get an FHA loan?

As mentioned, FHA loans have historically been a popular option for first time home buyers. This leads many people to assume that you are required to be a first time home buyer to obtain an FHA loan. However, this is not the case.

Yes, you can get an FHA loan in Arizona even if you’ve bought a home before.

But, that doesn’t mean that you can use an FHA loan to buy rental properties and vacation homes. FHA loans are meant for people looking to buy their home and use it as their principal residence. So, if you buy a home using an FHA loan, you are expected to move into the home within 60 days and continue occupying the home for at least a year.

As a rule, FHA will not insure more than one property as someone’s principal residence. So, if you own a home and it is financed with an FHA loan, you typically have to sell it before buying another home with an FHA loan. With that said, there are exceptions to the rule. They are as follows:

Relocation – If you are relocating more than 100 miles away for employment-related reasons, you can buy another home using an FHA loan without being required to sell your existing home.

Increase in family size – If you have an increase in legal dependents and you’ve outgrown your current home, you can buy another home using an FHA loan without being required to sell your existing home. But, the balance of the loan on the existing home has to be less than or equal to 75% of the appraised value of the home.

Vacating a jointly-owned property – If you co-own a home currently and you are vacating the home with no intent to return and the existing home will continue to be occupied by the other co-owner, you can buy another home in Arizona using an FHA loan. The typical scenario for this is if a husband and wife are getting divorced and one is moving out of their existing home that is financed with an FHA loan and he or she wants to buy another home using FHA financing.

Non-occupying co-borrower – A non-occupying co-Borrower with an existing FHA loan may qualify for another FHA loan on a new house to be their own Principal Residence. For example, if you co-signed on your kid’s FHA loan to help him/her buy his/her home, you can still use an FHA loan to buy your own home that you plan to live in.

A Borrower with an existing FHA-insured Mortgage on their own Principal Residence may qualify as a non-occupying co-Borrower on other FHA-insured Mortgages. So, if you own your own home and you have an FHA loan, you can co-sign for someone else’s FHA loan.

How do I qualify for an FHA loan?

The current FHA Policy Handbook is over 1000 pages long and we don’t expect you to know every detailed guideline that pertains to qualifying for an FHA loan. To make it easy, we will talk about FHA’s four general qualification standards. These are known as the “4 Cs of FHA Underwriting” and they are as follows:

Credit history – Do you have good credit history? Although FHA prefers good credit history, they do allow for some past blemishes.

Capacity to repay the loan – Do you make enough money to consistently make your monthly mortgage payments?

Cash assets – Do you have money available (including a gift or down payment assistance) for a down payment and closing costs?

Collateral – What is the value and condition of the home that you are buying?

Everyone’s financial situation is different and FHA’s loan approval guidelines allow for a flexible interpretation of their guidelines. In order to know for sure if you qualify for an FHA loan, you should talk to a licensed mortgage loan officer in Arizona who is experienced with FHA loan guidelines.

What is the minimum credit score for an FHA loan in Arizona?

Currently, the minimum credit score that is required to qualify for an FHA loan is 500, but there is a catch. FHA guidelines state that if your credit score is below 580, you can be approved, but you can only finance up to 90% of the value of the home. In other words, if you want to buy a house and use an FHA loan to finance the home, you have to put 10% down. To make matters slightly more complicated, if you are planning on using down payment assistance to buy a home with an FHA loan, Arizona’s down payment assistance programs require a minimum credit score of 640. But to be clear, the 640 minimum credit score requirement is for down payment assistance and not for FHA. So, in summary:

  • FHA minimum credit score allowed with 10% down is 500.
  • FHA minimum credit score allowed with only 3.5% down is 580.
  • The minimum credit score to use down payment assistance combined with an FHA loan in Arizona is 640.

What are the FHA loan income requirements?

FHA guidelines state that income must be reasonably likely to continue through at least the first three years of the mortgage. Further, if you want to qualify to buy a house using an FHA loan, you may only use income that is legally derived and, when required, properly reported as income on your tax returns.

Here is what is generally considered regarding income to qualify for an FHA loan.

  • Has your income been stable for the past 2 years?
  • Are you currently earning income?
  • Is your income durable and likely to continue for at least the next three years?

Do Arizona FHA loans have an income limit?

No, FHA loans do not have a maximum income limit. However, the individual down payment assistance programs do.

You can find the maximum income limits for current Arizona down payment assistance programs here.

What is the maximum loan amount for FHA loan in Arizona?

FHA sets maximum loan limits for each county every year. You can find the current maximum loan limit for all counties in Arizona here.

What is the minimum FHA down payment requirement in Arizona?

As stated above, the minimum down payment requirement for an FHA loan is 3.5% of the purchase price of the home as long as your credit score is above 580. If your credit score is between 500 and 580 then the minimum down payment required is 10%.

Are there any down payment assistance programs for FHA loans in Arizona?

Yes, all three major down payment assistance programs in Arizona allow for you to use an FHA loan to qualify to buy a home in Arizona.

What are the closing costs for an FHA loan in Arizona?

The closing costs that are required to buy a home in Arizona using an FHA loan are not too different from any other type of loan. The costs related to buying a home are discussed in detail here.

One cost that is unique to FHA loans is the FHA mortgage insurance premium. FHA offers various mortgage insurance programs that insure lenders against losses on mortgages. FHA collects a one-time upfront mortgage insurance premium at the time that you buy a home and an annual insurance premium that is collected from you in monthly installments. In other words, it’s part of your monthly mortgage payment.

A common FHA loan scenario in Arizona is buying a house with a 3.5% down payment amount (even if using down payment assistance) and getting a fixed interest rate with a 30-year loan term. In this scenario, the upfront mortgage insurance premium is equal to 1.75% of the base loan amount. It is almost always financed into the loan. The annual premium that is collected monthly is equal to .85%. FHA requires that you pay the annual premium over the entire life of the loan.

Here is a current chart of FHA mortgage insurance premiums.

Can the seller pay my closing costs for an FHA loan in Arizona?

Yes, when you are buying a home, FHA allows that the seller contributes up to 6% of the sales price to cover your closing costs.

Does FHA allow me to get a gift from someone to pay my down payment and closing costs when buying a home in Arizona?

Yes, you can get a gift to help you pay for your down payment and closing costs as long as there is no expectation of repayment. In other words, the person giving you the money is giving it to you and not loaning it to you.

FHA allows you to get a gift from the following:

  • a family member
  • your employer or labor union
  • a close friend
  • a charitable organization
  • a governmental agency or public entity

To document the gift, FHA requires that you get a letter that is signed and dated by you and the donor. The letter must have the following:

  • the donor’s name, address, and telephone number
  • the donor’s relationship to the Borrower
  • the dollar amount of the gift
  • a statement that no repayment is required

What kind of house can I buy with an FHA loan in Arizona?

In general, FHA loans require that the house that you buy is structurally sound and in good enough condition that it does not endanger your health and safety (ex. exposed electrical wires, mold or lead-based paint). An appraisal report is required for the home that documents the safety and soundness of the home.

FHA loans in Arizona can be used to buy the following homes that are designed for the occupancy of 1 to 4 families. Property types that are eligible for FHA loans include the following:

  • detached or semi-detached houses
  • townhouses
  • condos as long as they are located in an FHA-approved condominium project (contact us and we will check for you)
  • manufactured homes (restrictions apply and some lenders will not offer financing)

You cannot get an FHA loan to buy the following types of properties:

  • commercial enterprises
  • boarding houses
  • hotels, motels and condotels
  • tourist houses
  • private clubs
  • bed and breakfast establishments
  • vacation homes
  • fraternity and sorority homes

HOMES WE CAN HELP YOU FINANCE

$335,000
2 Beds ⋅ 2 Baths ⋅ 6956700 MLS ⋅ 1,202 SqFt.
BEST HOME ON TOUR! Stunning Remodel in 2022. Shows like a model! 2 bed/2 bath townhome with a loft in Mistwood Condos blends luxury and comfort in Tempe. Vaulted ceilings, expansive windows & bright, open layout create an inviting sense of space the moment you step inside. The spa-inspired bathrooms offer a touch of everyday indulgence, while the upgraded kitchen shines with crisp white cabinetry, recently installed quartz countertops, and a generously sized pantry w/ shelving & room for a full-size washer, dryer & extra storage. Gorgeous hard-surface flooring flows throughout--no carpet anywhere. The versatile loft upstairs - can be 3rd bedroom, home office, creative studio. 10-year warranty on brand new flat roof, installed on 18 Jan 2026. The first-floor primary suite offers a private sanctuary with a large vanity and a spacious walk-in closet. Residents enjoy resort-style amenities including a sparkling community pool, relaxing hot tub, and easy access to ample guest parking in addition to one assigned covered space. The community also features RV parking, a recreation room, and a nearby park. HOA covers water, sewer, common-area maintenance, and a blanket insurance policy for added convenience. Exterior community painting was completed in 2024, giving the neighborhood a fresh, modern look. Ideally located near ASU, Highway 60, top-rated dining, shopping, parks, and public transportation, this residence offers a sophisticated, low-maintenance lifestyle in one of Tempe's most convenient locations.

633 W Southern Avenue Unit 1117, Tempe
$420,000
2 Beds ⋅ 3 Baths ⋅ 6956660 MLS ⋅ 1,424 SqFt.
This beautifully updated corner unit delivers comfort, style, and low maintenance living in a prime location. From the moment you step inside, the natural light and fresh interior updates give the home a bright and welcoming feel. The main living level features an open layout with new paint, new carpet, and large windows that create an airy space for both relaxing and entertaining. The kitchen has been refreshed with updated appliances, a fun marble tile backsplash, an e granite sink, and plenty of counter space for meal prep. The refrigerator conveys, making move in simple. This level also connects to one of two private balconies, ideal for enjoying outdoor time without leaving home. Upstairs, you will find two comfortably sized bedrooms with LVP flooring that adds a clean, modern touch. Both bathrooms are well appointed, and the primary bath includes a tiled shower and great storage. A stackable washer and dryer convey and are conveniently located near the bedrooms. The ground level offers a generous two car tandem garage with extra room for storage plus overhead racks that help keep everything organized. Whether you need space for bikes, tools, or seasonal items, this setup provides plenty of flexibility. With thoughtful upgrades throughout, move in ready condition, and favorable distance to community spaces, shopping, dining, and nearby entertainment, this home offers an easy and enjoyable lifestyle. A fantastic opportunity for anyone looking for a stylish and well maintained place to call home.

1733 E Bridgeport Parkway, Gilbert
$339,900
3 Beds ⋅ 2 Baths ⋅ 6956291 MLS ⋅ 1,054 SqFt.
A beautifully renovated Townhome just a few miles from Downtown Gilbert!! HVAC system was replaced in 2022, home was remodeled in 2023, fresh white cabinets, stainless appliances, incredible white granite countertops, R/O system, newer flooring and the list goes on and on, this home is move-in ready and perfect for the first time home buyer and investor, Low maintenance backyard with plenty of open space and shade, easy access to the 60 Freeway, all of life's needed and wanted amenities, and again just 1 1/2 miles to downtown Gilbert, You've got to see this amazing home! come take a look!

1500 N Sunview Parkway Unit 21, Gilbert
$450,000
3 Beds ⋅ 2 Baths ⋅ 6956214 MLS ⋅ 1,499 SqFt.
This is a nice one-owner home on a great corner lot. The home features an awesome 3 bedroom floorplan located in the popular Parkside at the Galleria neighborhood. You'll find vaulted ceilings, an open floor plan, a fireplace, and a two car garage. Some Other Great features Include: Water Heater Replaced in 2024, Citrus Trees - Orange and Lemon, Fireplace, AC Replaced 2017, Custom Shelving in Closets, etc. This is an amzing South Tempe location close to restaurants, shopping, major employers, great freeway access, recreation and more. Some of the benefits of living in the Parkside neighborhood include: Two community pools and spas, Front yard landscaping, Beautiful mature trees, RV / Boat parking (for a fee). You'll love this home and lifestyle.

1066 E Chilton Drive, Tempe
$360,000
3 Beds ⋅ 3 Baths ⋅ 6956146 MLS ⋅ 1,368 SqFt.
MULTIPLE OFFERS! BEST HOME ON TOUR AWARD - Looking for the perfect VALLEY OF THE SUN GETAWAY from the cold and snow, or maybe you are DOWNSIZING and want to eliminate maintenance time & expenses, or maybe you are a 1st time buyer and just want a gorgeous home. Wow! Whatever your reason, you will fall in love with this AMAZING home & community with many features. This meticulously maintained MOVE-IN READY 3 BR 2.5 BA almost 1400sf home w/2 CAR garage in very sought-after lush POWER RANCH is located in highly-rated GILBERT ARIZONA, ALL FOR UNDER $400k. The tree-lined community will give you that welcome home feel. As you approach, find the cute CURB APPEAL of the LARGE PAVERED & GATED front PORCH where you can enjoy Arizona's awesome weather to do some outdoor grilling, sit down w/friends for a tasty meal and then hang out around the firepit to absorb some good friendship. Inside you will find a VERY CHIC & LIVABLE OPEN CONCEPT great room with TILE EXTENDING T/O the entire main living space. The kitchen offers UPGRADED MAPLE CABINETRY, GRANITE counters, and STAINLESS appliances. The attached 2 CAR garage w/water softener loop is conveniently located, for bringing in groceries to the pantry, as is the powder rm and laundry. When it's time to wind down, an UPGRADED RAILING leads you to the bedrooms. The relaxing OWNER'S SUITE has a BALCONY that overlooks your front patio and nicely maintained landscaped common area, and the bath offers his/hers sinks, PRIVATE WATER CLOSET, and WALK-IN CLOSET. Head down the hall to the 2 OTHER BEDROOMS to say goodnight to the rest of the family, and where you'll find ANOTHER FULL BATH. Includes CEILING FANS in all rooms, NEW CARPERT, and fresh paint with the latest in SAGE ACCENT WALLS. Just a couple miles from the ASU campus, Loop 202 freeway to quickly get you to all parts of the southeast valley, convenient travel out of Phx-Mesa Gateway Airport, and all the shopping and dining your heart desires at San Tan Village. Welcome to an abundant life. And don't miss the MUST SEE VIDEO.

4732 E Portola Valley Drive Unit 102, Gilbert
$258,000
2 Beds ⋅ 2 Baths ⋅ 6955999 MLS ⋅ 1,119 SqFt.
Welcome to this inviting 2-story townhouse featuring a bright open floor plan with a kitchen bar overlooking the living room. Enjoy natural light and easy indoor-outdoor living with a balcony just off the main living area. The second floor offers both bedrooms and a cozy eating area, creating a comfortable and functional layout. A 1-car garage on the main level adds convenience and extra storage. A great opportunity for low-maintenance living with thoughtful design throughout.

2024 S Baldwin -- Unit 125, Mesa
$465,000
3 Beds ⋅ 2 Baths ⋅ 6955941 MLS ⋅ 1,364 SqFt.
Single Level View Lot in the perfect South Tempe location just one mile from the 101! Enter to high ceilings with lots of natural light. Clean line design with light warm colors! Enjoy the sunrise on the front travertine patio listening to the fountain. Entertain friends and family on the large back patio that combines with the living area to become one open space with views in multiple directions. Additional patio off the primary bedroom to enjoy the stars before bed. Enjoy the pool you don't maintain as well as pickleball, tennis and basketball. The lifestyle you will love here will allow you to walk to the movie theatre! Walk to breakfast! Walk to several great dining destinations. This updated home has one of the best interior View lot's in the community with it's large patio.

1850 E Vinedo Lane, Tempe
$283,819
3 Beds ⋅ 2 Baths ⋅ 6955907 MLS ⋅ 1,284 SqFt.
Don't miss this Beautifully updated, well maintained townhome. Corner unit. 3 BR, 2 Bathroom. Amazing floorplan with one bedroom downstairs and 2 upstairs. Spacious Living Room with gorgeous vaulted ceilings. Inside washer/dryer. Large kitchen with Stainless appliances and granite countertops. Lovely patio. Unit is just steps from the sparkling community pool, about 10 minutes from ASU, and about 15 min to Old Town Scottsdale! This is a must see! Low HOA!

1342 W Emerald Avenue Unit 352, Mesa
$375,000
3 Beds ⋅ 3 Baths ⋅ 6955814 MLS ⋅ 1,523 SqFt.
GREAT PRICE! Experience SOHO-style sophistication in this move-in-ready townhome located in the heart of Historic Downtown Chandler. Offering 1,523 sq ft with 3 rooms and 2.5 bathrooms, this home provides flexible living with options for bedrooms, office space, or bonus rooms across three thoughtfully designed levels. The downstairs features a versatile room with a half bath and hall closet--ideal for a guest suite, office, or flex space. Each level includes a bathroom for added convenience. The second level showcases an open-concept Great Room with soaring ceilings, new wood-look laminate flooring, and a chef's kitchen featuring white cabinetry, granite countertops, a large social island, and access to a private patio. The third level offers a private retreat overlooking the community pool, complete with a large bedroom, full bath with soaking tub, and a private patio. Enjoy multiple outdoor spaces, including balconies with views of the pool and spa. Additional highlights include fresh interior paint, an attached 2-car garage, and all appliances conveying, including refrigerator, washer, and dryer. Located in a gated community with resort-style amenities, just steps from Downtown Chandler dining, shopping, and breweries, and minutes from the Price Road Tech Corridor. Modern comfort meets an unbeatable urban location.

123 N Washington Street Unit 22, Chandler
$350,000
2 Beds ⋅ 2 Baths ⋅ 6955627 MLS ⋅ 1,371 SqFt.
Welcome to effortless living in this beautifully maintained 2-bedroom, 2-bath home with a 2-car garage, perfectly situated in one of the area's premier adult lifestyle communities. Thoughtfully updated and move-in ready, this residence blends comfort, style, and low-maintenance living. The heart of the home is an impressive chef-inspired kitchen, featuring granite countertops, a large custom island, stainless steel appliances, and elegant shutter blinds filtering in natural light throughout. The spacious primary suite and inviting guest bedroom offer ideal retreats, while the **laundry roomwith extra shelving**keeps everyday tasks organized and convenient. A Nuvo H2O reverse-osmosis system add peace of mind. Enjoy morning coffee or sunset cocktails on the covered patio, complete with retractable sun shades for year-round comfort. The garage is fully equipped with cabinetry, providing excellent storage. But the lifestyle doesn't stop at your doorstepthis community is truly exceptional. Residents enjoy access to a 13,000 sq. ft. recreation center, featuring a grand ballroom, library, card room, billiards, and a full lineup of clubs and activities. Outdoors, you'll find two pools, six tennis courts, pickleball, bocce, shuffleboard, horseshoes, a softball field, and courts for basketball and volleyball. Nature lovers will appreciate the walking and biking trails, pet owners will love the dog park, and RV enthusiasts can take advantage of the dedicated parking and storage.

2101 S Yellow Wood -- Unit 71, Mesa
Start Your Search

Copyright 2026 Arizona Regional Multiple Listing Service, All rights reserved. The data relating to real estate for sale on this website comes in part from the Arizona Regional Multiple Listing Service. All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) nor Arizona Regional Multiple Listing Service shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless.