Posted by Effective January 1, 2023 FHA Max loan limit in Maricopa County, Arizona is $530,150 (for single family 1 unit homes). This is up from FHA’s 2022 cap of $441,600
FHA Max Loan limits rose again for Arizona and the U.S. for 2023. These limits dictate the highest FHA home loan amount a borrower can obtain in a given area. In Maricopa County Arizona, the FHA Max loan in 2023 is $530,150 for a single family 1 unit property. Check out 2022 Conventional Loan Limits.
2023 Arizona FHA Loan Limits by MSA
| MSA Name | State | County | One Unit Max Loan | Two Unit Max Loan | Three Unit Max Loan | Four Unit Max Loan |
|---|---|---|---|---|---|---|
| Non-Metro | Arizona | Apache County | $472,030 | $604,400 | $730,525 | $907,900 |
| Sierra Vista-Douglas | Arizona | Cochise County | $472,030 | $604,400 | $730,525 | $907,900 |
| Flagstaff | Arizona | Coconino County | $517,500 | $662,500 | $800,800 | $995,200 |
| Payson | Arizona | Gila County | $472,030 | $604,400 | $730,525 | $907,900 |
| Safford | Arizona | Graham County | $472,030 | $604,400 | $730,525 | $907,900 |
| Non-Metro | Arizona | Greenlee County | $472,030 | $604,400 | $730,525 | $907,900 |
| Non-Metro | Arizona | La Paz County | $472,030 | $604,400 | $730,525 | $907,900 |
| Phoenix-Mesa-Scottsdale | Arizona | Maricopa County | $530,150 | $678,700 | $820,350 | $1,019,550 |
| Lake Havasu City-Kingman | Arizona | Mohave County | $472,030 | $604,400 | $730,525 | $907,900 |
| Show Low | Arizona | Navajo County | $472,030 | $604,400 | $730,525 | $907,900 |
| Tucson | Arizona | Pima County | $472,030 | $604,400 | $730,525 | $907,900 |
| Phoenix-Mesa-Scottsdale | Arizona | Pinal County | $530,150 | $678,700 | 720,525 | $1,019,550 |
| Nogales | Arizona | Santa Cruz County | $472,030 | $604,400 | $730,525 | $907,900 |
| Prescott | Arizona | Yavapai County | $472,030 | $604,400 | $730,525 | $907,900 |
| Yuma | Arizona | Yuma County | $472,030 | $604,400 | $730,525 | $907,900 |
Click here to search National 2023 FHA Loan Limits
How are FHA Loan Limits Determined?
FHA sets loan limits a bit differently than other home loan products. Instead of establishing a single maximum limit, FHA sets a Floor Limit and a Ceiling Limit for the year. In 2023, those FHA limits are:
- $472,030 FHA Floor
- $1,089,300 FHA Ceiling
Also, instead of pegging all loan limits to County, FHA uses either County OR “Metropolitan Statistical Areas” or “MSA’s“. MSA’s areas are established by the US Office of Management and Budget. Typically, MSA’s consist of 1 to 4 neighboring cities.
“Loan limits are determined by the county in which a property is located, except for properties located in Metropolitan Statistical Areas (MSAs)…”
HUD Mortgagee Letter 2021-28
Each MSA in the United States receives a Max FHA Loan limit within the Floor and Ceiling amounts. The Floor and Ceiling amounts listed above are for single family homes in non-high cost MSA’s. Higher FHA limits exist for homes in high cost MSA’s.
The Math Behind FHA Max Loan Limits
Establishing FHA Max loan limits each year is based on local home price trends as well as a few additional factors. Here is how it works:
- Determine “Anchor” Loan Amount
Prior to calculating the 2023 FHA floor and ceiling loan limits, HUD determines an anchor loan amount. HUD/FHA uses the 2023 Conforming Loan Limit set by the FHFA (not to be confused with FHA). The 2023 anchor loan amount is $726,200
- Calculate 2023 Floor Loan Amount
Based on 2 factors HUD calculates FHA’s 2023 Floor Loan Amount. This is the lowest amount that any MSA can have as their Maximum FHA Loan amount for 2023. The 2 factors are:
1. Anchor Loan Amount: $726,200
2. Factor: 65%
The FHA Floor Loan Amount equals the 65% rate multiplied by the anchor loan amount
$726,200 X 65% = $472,030 – FHA 2023 Floor Loan Amount - Calculate 2023 FHA Ceiling Loan Amount
Using the Anchor loan amount along with a higher factor, HUD determines the FHA ceiling loan amount. This is the highest amount that any MSA can have as their Maximum FHA Loan amount for 2023 (except for high cost MSA’s). The 2 factors are:
1. Anchor Loan Amount: $726,200
2. Factor: 150%
The FHA Ceiling Loan Amount equals the 150% rate multiplied by the anchor loan amount $726,200 = $1,089,300 – FHA 2023 Ceiling Loan Amount
After HUD has both the 2023 FHA Floor and Ceiling loan limits established – the framework is set. Each MSA then receives it’s annual FHA Loan Max based on their local average home price and the FHA floor and ceiling limits. See below for a sample calculation.
Finalizing an MSA’s 2023 FHA Loan Max
Each states MSA’s 2023 FHA Loan Limits come from 3 basic criteria. The are as follows:
- Area’s average home price
- FHA Floor Loan Limit
- FHA Ceiling Loan Limit
When an MSA’s average home prices falls within the FHA Floor and Ceiling that average home price becomes it’s 2023 FHA Loan Max. However, when an MSA’s average home price falls outside of either the FHA Floor or Ceiling the appropriate FHA limit becomes that area’s 2023 FHA max loan amount.
For example, areas/MSA’s with average home prices under the $472,030 FHA floor adopt $472,030 as its 2023 FHA Max Loan amount. Similarly, an area where average home prices exceed the $1,089,300 FHA Ceiling (except those noted below) take on $1,089,300 as their 2023 FHA Max Loan amount.
Special FHA Loan Limit Exception Areas
Lastly, Alaska, Hawaii, Guam and the Virgin Islands have their own special and higher 2023 FHA Loan limits. Learn more about high cost Counties on HUD’s site.
“Mortgage limits for the special exception areas of AK, HI, GU and VI are adjusted by FHA to account for higher costs of construction”
HUD Mortgagee Letter 2021-28 (page 3)
2023 FHA Loan Limits are effective for all loans with FHA case numbers assigned on or after January 1, 2023.
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