2025 Arizona Loan Limits at a Glance
Updated: January 2025 | Source: Federal Housing Finance Agency (FHFA)
Understanding 2025 Arizona Loan Limits
The Federal Housing Finance Agency (FHFA) sets conforming loan limits annually based on changes in the national average home price. For 2025, Arizona has two distinct conforming limit categories that determine whether your loan qualifies as baseline conforming, high-balance conforming, or jumbo.
What Are Conforming Loan Limits?
Conforming loan limits are the maximum loan amounts that Fannie Mae and Freddie Mac can purchase or guarantee. Loans within these limits typically offer:
- ✓ Lower interest rates
- ✓ More flexible qualification requirements
- ✓ Better loan terms and conditions
- ✓ Government-backed security
Why High-Balance Limits Matter
High-cost areas like Maricopa and Pima counties receive elevated limits due to higher median home prices. This means buyers can:
- ✓ Finance more expensive homes with conforming rates
- ✓ Avoid jumbo loan requirements and costs
- ✓ Access better terms on properties up to $1,149,825
- ✓ Benefit from Fannie/Freddie backing
Important: These limits apply to conventional loans only. FHA, VA, and USDA loans have separate limit structures.
Arizona County-by-County Loan Limits
High-Balance Counties - $1,149,825
These counties qualify for the highest conforming loan limits in Arizona due to elevated median home prices.
Maricopa County
Pima County
Major Cities Include:
Baseline Conforming Counties - $766,550
All other Arizona counties use the national baseline conforming loan limit.
Counties with Baseline Limits:
Notable Cities in Baseline Counties:
How FHFA Determines Loan Limits
Annual Adjustment Process
The FHFA adjusts conforming loan limits every year based on changes in the national average home price, as measured by the House Price Index (HPI).
Calculate National Average
FHFA measures year-over-year change in average U.S. home prices
Apply Percentage Change
Baseline limit adjusted by HPI percentage change
Identify High-Cost Areas
Counties where median home price exceeds baseline get elevated limits
Set Maximum at 150%
High-balance limits capped at 150% of baseline ($766,550 × 1.5 = $1,149,825)
Historical Arizona Limits
| Year | Baseline | High-Balance |
|---|---|---|
| 2025 | $766,550 | $1,149,825 |
| 2024 | $766,550 | $1,149,825 |
| 2023 | $726,200 | $1,089,300 |
| 2022 | $647,200 | $970,800 |
| 2021 | $548,250 | $822,375 |
Trend: Arizona's high-balance loan limits have increased significantly over the past 5 years, reflecting strong real estate appreciation in the Phoenix and Tucson metro areas.
What These Limits Mean for Arizona Buyers
If You're Buying Over $1,149,825
You need jumbo financing regardless of county.
- • Higher interest rates
- • Stricter qualification
- • Larger down payments (15-20%)
- • More reserves required
Example Scenarios
Scenario 1: Buying in Scottsdale for $950,000
✓ Maricopa County = High-balance conforming loan
✓ Better rates and terms than jumbo
✓ Down payment as low as 5-10% with excellent credit
Scenario 2: Buying in Prescott for $850,000
⚠ Yavapai County = Exceeds baseline ($766,550)
• Requires jumbo loan financing
• Higher rates and stricter qualification than high-balance
Scenario 3: Buying in Tucson for $1,100,000
✓ Pima County = High-balance conforming loan
✓ Significant savings vs. jumbo financing
✓ Access to competitive conforming programs
Scenario 4: Buying in Paradise Valley for $1,500,000
⚠ Exceeds high-balance limit
• Requires jumbo financing even in Maricopa County
• Expect 15-20% down payment minimum
Loan Limits for 2-4 Unit Properties
Multi-unit properties have higher conforming loan limits than single-family homes, making them attractive for owner-occupants and small investors.
High-Balance Counties (Maricopa & Pima)
* Owner-occupancy required for conforming financing on 2-4 units
Baseline Counties (All Others)
* For investment multi-units, see investment property loans
Multi-Unit Property Benefits
- ✓ Rental income can qualify you for larger loan
- ✓ Build equity while living in one unit
- ✓ Lower down payment than investment properties
- ✓ Conforming rates even on large properties
- ✓ 75% of rental income typically counted
- ✓ Great house-hacking strategy
Comparing Arizona Loan Limits by Program
| Loan Program | Maricopa/Pima | Other Counties | Notes |
|---|---|---|---|
| Conventional High-Balance | $1,149,825 | N/A | Best rates for properties over baseline |
| Conventional Baseline | $766,550 | $766,550 | Standard conforming nationwide |
| FHA Loans | $644,000 | $498,257 | Lower limits than conventional |
| VA Loans | $1,149,825 | $766,550 | Matches conventional limits |
| USDA Loans | N/A | No limit* | *Income limits apply; rural areas only |
| Jumbo Loans | $1,149,826+ | $766,551+ | Above conforming limits |
When Do Loan Limits Change?
Annual Update Timeline
FHFA Begins Analysis
Reviews third quarter House Price Index data
Announcement
FHFA announces new limits for following year (typically mid-November)
New Limits Take Effect
Updated limits go into effect January 1st
What Triggers Changes?
- 📈 Home Price Growth: Rising home prices lead to higher limits
- 📉 Price Declines: Limits can decrease if prices fall (rare)
- 🏘️ Local Market Changes: Counties can gain or lose high-balance status
- 📊 Economic Factors: Inflation and market conditions influence adjustments
Good News for Arizona: Both Maricopa and Pima counties have maintained high-balance status for several years and are expected to continue qualifying based on strong market performance.
Frequently Asked Questions
Why do Maricopa and Pima counties have higher limits?
These counties qualify for high-balance limits because their median home prices exceed 115% of the national baseline conforming limit. The FHFA designates areas with higher housing costs as "high-cost areas" eligible for limits up to 150% of the baseline.
Can Pinal County homes use high-balance limits?
No. Although Pinal County borders Maricopa County and contains Phoenix suburbs like Casa Grande and Queen Creek, it has not qualified for high-balance status. Properties in Pinal County are limited to the baseline $766,550 conforming limit.
What if I'm buying on the border between two counties?
The property's physical location determines which county's loan limits apply. If the property is in Maricopa County, even if it's near the Pinal County border, you can use the $1,149,825 high-balance limit.
Do these limits apply to refinancing?
Yes, the same conforming loan limits apply to both purchase and refinance transactions. Your new loan amount must fall within the applicable limit for your county to qualify as conforming.
What happens if my loan is $1 over the limit?
Even $1 over the conforming limit moves your loan into jumbo territory, which means higher rates and stricter qualification requirements. In this scenario, you might consider a larger down payment to stay within conforming limits.
Are condo loans subject to the same limits?
Yes, the same limits apply to warrantable condominiums. However, the condo project must meet Fannie Mae or Freddie Mac approval guidelines. Non-warrantable condos may require alternative financing even if under the loan limit.
Will Arizona's limits increase in 2026?
The 2026 limits will be announced in November 2025 and will depend on national home price trends through Q3 2025. Given Arizona's strong real estate market, increases are possible, but not guaranteed.
Can I combine loans to stay under the limit?
Some borrowers use a first mortgage at the conforming limit plus a second mortgage (piggyback loan) to avoid jumbo financing. This strategy requires qualification for both loans and may involve higher combined rates. Consult with your lender about second mortgage options.
Strategic Planning Around Loan Limits
Maximizing Your Buying Power
-
1.
Know Your County
Verify which county limits apply to your target area
-
2.
Calculate Your Range
Determine purchase price with your down payment + conforming limit
-
3.
Consider Timing
If close to year-end, wait to see if limits increase January 1st
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4.
Explore Alternatives
If over limit, compare high-balance vs jumbo financing costs
When to Consider Jumbo Instead
Sometimes jumbo financing makes sense even if you qualify for conforming:
- • Property significantly exceeds conforming limits
- • You have excellent credit and substantial assets
- • Jumbo lenders offering competitive rates due to your profile
- • Need features not available on conforming loans
Expert Tip: Get quotes for both high-balance conforming and jumbo loans if your purchase price is near the limit. Compare total costs over your expected holding period.
Additional Resources
Related Loan Programs
Official Sources
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