Maricopa County Loans: What is the FHA Loan Limit in Maricopa County, AZ?

FHA Loan Limit Maricopa County, AZ

FHA loans are a type of government-backed mortgage that allows borrowers to finance a home with as little as 3.5% down. They are prevalent among first-time homebuyers and those with low or moderate incomes. In this blog, we’ll look at the FHA loan limit in Maricopa County, AZ, and discuss the features and benefits of an FHA loan.

What is an FHA loan?

FHA loans are mortgages insured by the Federal Housing Administration (FHA). FHA loans have a lower down payment and credit score requirements than traditional mortgages, and they are available to borrowers with a wide range of incomes.

If you need a larger mortgage than the FHA loan limit for Maricopa county, you may want to consider a conventional mortgage, which the federal government does not insure. You will need a good credit score to qualify for a traditional mortgage, and you will need to make a larger down payment than you would with an FHA loan.

What is the FHA loan limit in Maricopa county? 

The FHA loan limits are based on the national conforming loan limit, the maximum loan amount that can be acquired under federal guidelines. In addition to the national boundary, each county has its specific limitations. 

FHA Loans are capped at $441,600 for 1 living-unit home and $849,250 for four living units. For two to three units, the limit is between the caps mentioned above. Meanwhile, Conventional Loans have a limit of $647,200 for one living-unit home and $1,244,850 for four living units. These limits are in place to ensure everyone has access to safe and affordable housing. 

The benefits of taking out an FHA loan.  

There are many benefits to taking out an FHA loan. Here are a few: 

1) You don’t need a large down payment.

2) The interest rates are usually lower than other types of loans.

3) You can qualify for a loan even with poor credit.

4) Closing costs are typically lower than for other types of loans. 

What kind of property can you buy with an FHA loan? 

You can usually purchase a single-family home, a duplex or triplex, or a condominium unit with an FHA loan. You can also buy a manufactured home with an FHA loan, but there are some special considerations that you should be aware of. Manufactured homes must be built on a permanent foundation and meet specific other criteria to qualify for an FHA loan.

Who is eligible for an FHA loan? 

To qualify for an FHA loan, you must meet the following requirements:

  • You must be a U.S. citizen or permanent resident.
  • You must have a steady source of income.
  • You must have a valid Social Security number.
  • Your credit score should be at least 580, although lenders may require a higher score to qualify for the best terms.
  • You must have had no bankruptcies or foreclosures in the past.
  • You must have enough saved up for a down payment and closing costs.
  • You must have a clear plan for using the property.

You should be eligible for an FHA loan if you meet these requirements. However, keep in mind that each lender has its guidelines and may have different needs, so it’s always a good idea to shop around and compare offers before making a final decision.

Tips for someone who’s thinking about taking out an FHA loan

1. Make sure you’re eligible for an FHA loan. Check with your lender to see if you meet the requirements.

2. Compare interest rates and terms from various lenders. An FHA loan may have a lower interest rate than a conventional loan, and the terms will differ, but it may be worth it if you don’t have a down payment saved or your credit score is low.

3. Get pre-approved by a lender before house hunting. This will help you know how much you can afford and put you in a better position when negotiating with sellers.

4. Be prepared to pay mortgage insurance premiums (MIPs). MIPs are required on all FHA loans and can add to the cost of your loan.

5. Make sure you understand the rules for FHA loans, including the maximum loan amount, minimum down payment, etc., before signing a contract.

6. Be aware that there are some restrictions on FHA loans, such as being unable to be used for investment properties or vacation homes.

7. Be sure to budget for other costs associated with buying a home, such as inspections, appraisal fees, and closing costs.

8. Talk to your lender about any questions or concerns throughout the process. They should help you understand the loan requirements and how to meet them best.

Need help? 

If you’re looking for a mortgage in Maricopa County, AZ, Stone Tree Lending is here to help. We are a full-service mortgage lending company with an experienced staff who can guide you through the loan process from start to finish. Whether you are interested in a conventional loan, FHA loan, or something else, we can help you find the right financing for your needs. Contact us today to get started!

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