Maricopa County and Pinal County Maximum FHA Loan Limits Increased for 2017
Maximum Arizona FHA Loan Limits Rise
In response to the rising Metro Phoenix AZ median home prices in Maricopa County and Pinal County, FHA has increased the maximum loan amount to purchase single family, duplex, tri-plex and four-plex residences.
Listed below is the maximum loan amount by property type and the maximum sales price based on the minimum 3.5% down payment:
- 1 family residence: $279,450 Maximum Loan Amount - Maximum Sale Price of $289,585
- 2 family residences: $357,750 Maximum Loan Amount - Maximum Sale Price of $370,725
- 3 family residences: $432,400 Maximum Loan Amount - Maximum Sale Price of $448,082
- 4 family residences: $537,400 Maximum Loan Amount - Maximum Sale Price of $556,891
- The property being purchased must be the principal residence of the borrower.
- The maximum sales price can be increased by the amount of increased down payment.
MIP - FHA Mortgage Insurance Premium - 2 Parts
Upfront Mortgage Insurance Premium is currently set at 1.75% of the loan amount and can be added to the loan and financed or paid in cash at the time of sale. In the event the MIP is added to the loan, the amount financed can exceed the maximum loan amount by the amount of the financed Upfront MIP.
Monthly Mortgage Insurance Premium fee for loans >95% loan to value (LTV) for 30 years is .85% of the remaining balance. The monthly MIP payment can be less for lower LTV loans and for loans less than 30 years in duration. For most borrowers, the monthly MIP will continue until the loan balance is paid in full. The Monthly MIP fee is added to your monthly loan payment that includes principal, interest, property taxes and homeowners insurance.
Why Choose an FHA Loan?
FHA is popular because it will lend to borrowers with lower credit scores, higher debt ratios and require a lower down payment than conventional loan rates. FHA loan rate may be slightly higher, but FHA enables buyers to own a home.
Borrowers with higher credit scores, lower debt to income ratio, sufficient reserves for higher down payments than the FHA minimum and/or borrowers purchasing residences priced above the FHA maximum loan amount should compare conventional loans to FHA loans to find the best loan and terms that meet their needs.
Review of 2017 Arizona Maricopa and Pinal County Conventional and VA Loan Limits
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