Quick Answer: AZFA income limits range from $94,500 to $149,385 depending on your county and household size. Most Arizona families earning under $150k annually will qualify, with purchase price limits ranging from $396,900 to $548,250 based on location.
Understanding AZFA eligibility requirements is crucial before starting your home search. The Arizona Housing Finance Authority sets income and purchase price limits to ensure their programs serve working families who need assistance most. These limits are more generous than many buyers expect, and understanding them helps you plan your home purchase effectively.
Why AZFA Has Income Limits
AZFA programs are funded through tax-exempt mortgage revenue bonds, which come with federal requirements that assistance goes to low-to-moderate income families. These limits ensure AZFA programs help those who need them most while still serving a broad range of Arizona working families.
The good news: AZFA limits are set high enough that most first-time home buyers in Arizona qualify. Even many two-income professional households fall within the limits, especially in smaller household sizes.
2025 AZFA Income Limits by County
Income limits vary by county based on area median income (AMI) and are updated annually. AZFA uses two household size categories: 1-2 persons and 3 or more persons.
Important: 2025 Limits Effective Now
The limits shown are for 2025 and are current as of the publication date. AZFA updates limits annually, typically in January. Always verify current limits with your lender before making purchase decisions.
| County | Major Cities | 1-2 Person Limit | 3+ Person Limit | Purchase Price Limit |
|---|---|---|---|---|
| Maricopa | Phoenix, Mesa, Chandler, Scottsdale, Glendale, Tempe, Gilbert | $129,900 | $149,385 | $548,250 |
| Pima | Tucson, Oro Valley, Marana, Sahuarita | $116,700 | $134,205 | $489,450 |
| Pinal | Casa Grande, Apache Junction, Maricopa, Queen Creek | $111,300 | $127,995 | $466,950 |
| Coconino | Flagstaff, Sedona, Page | $108,000 | $124,200 | $453,600 |
| Yavapai | Prescott, Prescott Valley, Cottonwood | $105,300 | $121,095 | $442,050 |
| Yuma | Yuma, San Luis, Somerton | $99,900 | $114,885 | $419,550 |
| Mohave | Lake Havasu City, Kingman, Bullhead City | $97,200 | $111,780 | $408,150 |
| Cochise | Sierra Vista, Douglas, Bisbee | $94,500 | $108,675 | $396,900 |
| Rural Counties | Apache, Gila, Graham, Greenlee, La Paz, Navajo, Santa Cruz | $94,500 - $105,300 | $108,675 - $121,095 | $396,900 - $442,050 |
*Limits shown are approximate for 2025 and subject to annual updates. Contact Todd Uzzell Home Loans at 480-330-1724 for exact current limits and to verify your specific county eligibility.
How AZFA Calculates Household Income
AZFA counts ALL household income, not just the borrowers' income. This is different from standard mortgage qualifying and catches many buyers off guard. Understanding what counts as household income is critical to knowing if you qualify.
✓ Income That Counts
- Wages & Salaries: All W-2 income from borrowers and household members age 18+
- Self-Employment: Net profit from businesses, contract work, 1099 income
- Social Security: Retirement and disability benefits for anyone in household
- Pension/Retirement: All retirement income including 401k distributions
- Investment Income: Interest, dividends, capital gains, rental income
- Child Support/Alimony: Court-ordered support received
- Other Income: VA benefits, unemployment, workers comp, trust income
- Adult Children Living at Home: Their full income if 18+ and living in the home
✗ Income NOT Counted
- Children Under 18: Income from minors is excluded
- Full-Time Students: Income from household members who are full-time students
- Temporary Residents: Income from people not permanently living in home
- Foster Care Payments: Foster parent stipends excluded
- Some Government Benefits: Food stamps, TANF, certain assistance programs
- Overtime (Sometimes): May be excluded if not stable/recurring for 2+ years
- Bonus Income (Sometimes): May be excluded if not consistent pattern
Real-World Income Calculation Examples
Example 1: Young Couple, No Kids
Borrower 1 Salary: $65,000/year
Borrower 2 Salary: $48,000/year
No other household members
Total Household Income: $113,000
✓ Qualifies in Maricopa County (1-2 person limit: $129,900)
✓ Can purchase homes up to $548,250
Example 2: Family with Teen Living at Home
Borrower 1 Salary: $72,000/year
Borrower 2 Salary: $55,000/year
18-year-old son (part-time job): $12,000/year
Two younger children: Not counted (under 18)
Total Household Income: $139,000
✗ Exceeds Maricopa 3+ person limit ($149,385) - STILL QUALIFIES
⚠ This is close to the limit - teen's income pushed them higher but still under
Example 3: Multi-Generational Household
Borrower Salary: $85,000/year
Spouse Salary: $45,000/year
Elderly Parent (Social Security): $24,000/year
Parent will live in home
Total Household Income: $154,000
✗ Exceeds Maricopa 3+ person limit ($149,385)
✗ Does NOT qualify for AZFA in Maricopa County
Example 4: Self-Employed Borrower
Borrower (Self-Employed): $95,000 net income (after business expenses)
Spouse (W-2): $42,000/year
Investment Income: $6,000/year
Total Household Income: $143,000
✓ Qualifies in Maricopa County (3+ person limit: $149,385)
Note: Self-employment income uses NET (after expenses), not gross
Critical Point: Be Honest About Household Income
AZFA verifies household income through tax returns, W-2s, and other documentation for ALL household members. Failing to disclose income from adult children or other household members is mortgage fraud and can result in loan denial, foreclosure, and criminal prosecution. Always provide complete, accurate information.
AZFA Credit Score Requirements
Standard Minimum
Most AZFA programs require 640 minimum credit score for approval
Case-by-Case
May qualify with compensating factors like larger down payment or lower DTI
Generally Not Eligible
Credit scores below 620 typically don't qualify for AZFA programs
Credit Requirements by Loan Type
Minimum: 640 for full approval
620-639: Possible with manual underwriting and strong compensating factors
Note: FHA alone allows 580, but AZFA overlay requires 640
Minimum: 640 standard
620-639: May qualify with VA compensating factors
Note: VA has no official minimum, but AZFA requires 640
Minimum: 640 for automated underwriting approval
Below 640: Requires manual underwriting, difficult with AZFA
Minimum: 660 recommended (technically 620, but difficult)
680+: Best rates and terms
Note: Conventional + AZFA is most credit-sensitive combination
What If My Credit Score is Below 640?
If your credit score is currently below AZFA minimums, you have several options:
- • Credit Improvement Plan: Work with a credit counselor to raise your score (typically takes 3-12 months)
- • Alternative Programs: Explore non-AZFA down payment assistance that accepts lower scores
- • Add a Co-Borrower: Adding someone with better credit may help if their income doesn't push you over limits
- • Wait and Improve: Many buyers successfully raise scores 40-60 points in 6 months with proper strategies
Contact us for a free credit review and improvement plan: 480-330-1724
Additional AZFA Eligibility Requirements
First-Time Buyer Status
You qualify as a first-time buyer if you meet ANY of these:
- ✓ Never owned a home before
- ✓ Haven't owned a home in past 3 years
- ✓ Military veteran (exempt from first-time requirement)
- ✓ Purchasing in targeted area (first-time requirement waived)
- ✓ Single parent who only owned with former spouse
Property Requirements
- ✓ Must be primary residence (no investment/vacation homes)
- ✓ Single-family home, condo, or townhouse
- ✓ 2-4 unit properties eligible if you live in one unit
- ✓ Manufactured homes on permanent foundation (case-by-case)
- ✓ Must meet minimum property standards for loan type
- ✓ Property must be located in Arizona
Asset Limits
AZFA has NO asset limits. You can have substantial savings, investments, or retirement accounts and still qualify. The only income/asset restriction is the household income limit.
Note: Some other down payment assistance programs have asset limits, but AZFA does not.
Homebuyer Education
All AZFA borrowers must complete an approved 8-hour homebuyer education course before closing. This covers:
- • Budgeting for homeownership
- • Understanding mortgages and closing
- • Home maintenance basics
- • Avoiding foreclosure and financial pitfalls
Cost: $75-125, available online through approved providers
Debt-to-Income Ratio
Your total monthly debt payments (including proposed mortgage) divided by gross monthly income:
- FHA: Max 43-50% DTI (with compensating factors)
- VA: Generally 41% but flexible for veterans
- USDA: Max 41-46% DTI depending on credit
- Conventional: Max 43-50% DTI
Occupancy Requirement
You must:
- ✓ Occupy home as primary residence within 60 days of closing
- ✓ Remain primary residence for at least 1 year
- ✓ Cannot have other primary residence
- ✓ Job relocation exceptions may apply
Getting Pre-Qualified for AZFA Programs
Step-by-Step Pre-Qualification Process
Initial Consultation
Contact Todd Uzzell Home Loans for a free consultation. We'll discuss your income, household composition, desired purchase location, and credit situation. Call 480-330-1724 or email [email protected].
Verify Income Eligibility
We'll calculate your total household income including all household members age 18+. Bring recent pay stubs, tax returns, and information about other household members' income to verify you're under the county limit.
Credit Review
We'll pull your credit report (soft inquiry available for initial review) to verify you meet the 640 minimum score requirement. If your score is close, we'll provide strategies to improve it before formal application.
Calculate Purchase Power
We'll determine your maximum purchase price based on income, debts, down payment, and county purchase price limits. You'll know exactly what price range to shop in and what your estimated monthly payment will be.
Pre-Approval Letter
Once documentation is submitted and verified, we issue an AZFA pre-approval letter confirming you qualify for both the mortgage and down payment assistance. This makes you a strong buyer when making offers.
Documentation Needed for Pre-Qualification
For All Borrowers & Household Members 18+:
- • Last 2 years W-2s
- • Last 2 years tax returns (all pages)
- • Recent pay stubs (last 30 days)
- • 2 months bank statements
- • Social Security statements if receiving benefits
- • Proof of any other income sources
Additional for Self-Employed:
- • Business tax returns (1120, 1065, or Schedule C)
- • Profit & Loss statements
- • Business bank statements
- • CPA letter if available
For All Applicants:
- • Government-issued photo ID
- • Social Security card
Common AZFA Disqualification Issues & Solutions
Issue: Adult Child's Income Pushes Over Limit
Problem: Your 18-22 year old lives at home with part-time job income that pushes total household income over the limit.
Solutions:
- • Have adult child move out before applying (they must live elsewhere for AZFA purposes)
- • If child is full-time student, their income may be excluded
- • Consider waiting until child moves out naturally for college/work
- • Purchase in county with higher income limits
Issue: Credit Score Just Below 640
Problem: Your credit score is 620-639, just below AZFA's 640 minimum.
Solutions:
- • Pay down credit card balances to under 30% utilization (can raise score 20-40 points quickly)
- • Dispute any errors on credit report
- • Become authorized user on family member's good credit card
- • Wait 3-6 months while improving credit, then reapply
- • Consider manual underwriting with compensating factors
Issue: Home Price Over County Limit
Problem: The home you want costs more than the AZFA purchase price limit for your county.
Solutions:
- • Shop for homes under the price limit (most homes qualify)
- • Use conventional financing without AZFA (bring larger down payment)
- • Consider homes in bordering county with higher limits
- • Negotiate purchase price down if close to limit
Issue: High Debt-to-Income Ratio
Problem: Your current debts plus proposed mortgage payment exceed maximum DTI allowed.
Solutions:
- • Pay off credit cards and small loans before applying
- • Pay down car loan to under 10 payments remaining (may not count)
- • Increase income through raise, second job, or adding co-borrower
- • Shop for less expensive homes with lower monthly payments
- • Make larger down payment to reduce monthly mortgage payment
Issue: Owned Home in Past 3 Years
Problem: You sold a home 2 years ago and don't qualify as first-time buyer yet.
Solutions:
- • Wait until 3 years have passed since you owned a home
- • Veterans are exempt - you can use AZFA regardless of prior ownership
- • Purchase in AZFA targeted area where first-time requirement is waived
- • Use non-AZFA down payment assistance that doesn't require first-time status
AZFA Eligibility Quick Reference Checklist
Use this checklist to see if you likely qualify for AZFA programs:
✓ Income & Property
✓ Borrower Status
If you checked most boxes above, you likely qualify for AZFA programs!
Contact us for a free eligibility review: 480-330-1724
Find Out If You Qualify for AZFA Programs
Get a free eligibility review and learn how much home you can afford with AZFA assistance.
Phone: 480-330-1724 | Email: [email protected]
Related AZFA Resources
AZFA Loans Overview
Complete guide to all AZFA programs
AZFA First-Time Buyer Programs
Programs for first-time home buyers
AZFA Down Payment Assistance
Get up to $15,000 in assistance
Get Pre-Approved
Start your AZFA application
Phoenix Home Loans
AZFA programs in Phoenix area
Tucson Home Loans
AZFA programs in Tucson area