First Time Home Buyer Income Limits in Arizona
First Time Home Buyers
First Time Home Buyer Income Limits in Arizona
Every week someone tells me they assumed they made too much to be a first time buyer. Almost always, they were wrong. Here is which Arizona programs actually cap your income in 2026, and which ones never did.
The short answer
Most first time buyer loans in Arizona have no income limit at all. FHA, VA and standard conventional loans do not cap what you earn. The caps only show up on specific programs: Fannie Mae's HomeReady and Freddie Mac's Home Possible limit qualifying income to 80% of area median income, which is $89,920 in Maricopa and Pinal counties for 2026. USDA caps income at 115% of the area median, and Arizona IDA's Home Plus assistance caps it at $155,386. Our Arizona first time home buyer guide covers everything else.
A couple sat across from me last month convinced they earned too much to buy as first time buyers. Together they made a little over six figures, and they had read online that first time buyer programs were for low incomes. They were half right. A few programs are. The loans most Arizona first time buyers actually close on are not. If you want the bigger picture of what counts as a first time buyer and what each program does, start with our first time home buyer Arizona guide. This page answers one question: where are the income lines in 2026?
Loans with no income limit
FHA, VA and standard conventional loans have no maximum income in Arizona. Here is what limits you instead.
- FHA. HUD caps the loan size, not your paycheck. The 2026 FHA limit in Maricopa and Pinal counties is $557,750 for a one unit home, per HUD's FHA limits lookup, and the down payment can be as low as 3.5%. Our FHA loans in Arizona page has the full rules.
- VA. VA sets no minimum or maximum income. VA's purchase loan page says eligible buyers can put no money down as long as the price is not higher than the appraised value, and there is no PMI.
- Standard conventional. A regular conventional loan has no income cap. The conforming loan limit for 2026 is $832,750, per FHFA. That is the ceiling on the loan, not on you.
So if you earn well and assumed you were shut out, you were not. You just are not shopping the income capped programs. If you want to know who even counts as a first time buyer, our post on who is a first time home buyer in Arizona answers that one.
HomeReady and Home Possible: 80% of AMI
HomeReady and Home Possible are the two big conventional programs with an income cap, and both set it at 80% of area median income for the property's location. Freddie Mac's Home Possible page says plainly that qualifying income is limited to 80% of AMI, and Home Possible allows up to 97% loan to value on a one unit home. Fannie Mae's HomeReady allows down payments as low as 3%, with gifts, grants and Community Seconds allowed as funding sources.
Why would you want one if you qualify? Fannie Mae's own 2026 income file notes that AMI is also used to decide eligibility for certain loan level price adjustment waivers, and these programs come with reduced mortgage insurance coverage. In plain terms, staying under the line can mean better pricing on the same 3% down. Our post on first time home buyer interest rates in Arizona walks through how that pricing works.
2026 income caps by Arizona county
The 80% cap depends on where the house is, not where you live now. These are the county figures from Fannie Mae's 2026 Income Eligibility by County file.
| County | 2026 AMI | 80% cap (HomeReady) | 2025 AMI |
|---|---|---|---|
| Maricopa (Phoenix, Scottsdale, Buckeye) | $112,400 | $89,920 | $109,600 |
| Pinal (San Tan Valley, Maricopa, Casa Grande) | $112,400 | $89,920 | $109,600 |
| Coconino (Flagstaff) | $106,000 | $84,800 | $101,900 |
| Pima (Tucson, Marana, Oro Valley) | $99,800 | $79,840 | $96,100 |
| Yavapai (Prescott, Prescott Valley) | $92,200 | $73,760 | $87,300 |
| Mohave (Kingman, Lake Havasu City) | $79,900 | $63,920 | $73,800 |
| Yuma (Yuma) | $79,300 | $63,440 | $76,200 |
| Cochise (Sierra Vista) | $78,500 | $62,800 | $71,200 |
Every county on that list went up from 2025, which means some buyers who were just over the line last year are under it now. Fannie Mae's file is broken out by census tract, so the lender confirms the exact figure for your address. Freddie Mac runs its own eligibility tool for Home Possible, and the two can differ, which is one more reason to have a broker check both.
Honest caveat: these caps measure qualifying income, the income used to approve the loan. That is not always the same as everything your household earns, and the way it is counted can decide whether you are in or out. Ask before you assume.
USDA: 115% of median
USDA's guaranteed loan caps income at 115% of the area's median household income and only works in eligible rural areas. USDA Rural Development says the program offers 100% financing to buyers who meet the income test and occupy the home as their primary residence.
The catch in Arizona is location more than income. When I checked Buckeye City Hall on USDA's map today, it came back ineligible, even though some land south of town is. Our first time home buyer Buckeye guide has that detail.
Run your own numbers
Arizona mortgage calculator
- Principal and interest$2,655
- Property tax (est. 0.51%)$223
- Homeowners insurance (est.)$183
- Mortgage insurance$0
- Loan amount$420,000
Estimates only, not a quote or a commitment to lend. Property tax uses Arizona's average effective rate and varies by county and assessment. Insurance is an estimate and Arizona premiums have been rising. HOA dues are not included. Your actual rate depends on credit, loan to value, occupancy, and program.
Want these numbers to be real instead of estimated? We will price your exact scenario across every lender we work with.
Get my real numbersClose to one of these lines? Tell us your income and the area you are shopping. We will check HomeReady, Home Possible and the no cap loans side by side and show you which one prices best.
Check my incomeHome Plus and down payment help
Arizona IDA's Home Plus program caps borrower income at $155,386 for 2026, which is far higher than most people expect. Arizona IDA says that limit is based on the borrower's pre-tax gross income as calculated by the lender for the first mortgage approval. Home Plus offers up to 4% toward down payment and closing costs. The second lien is forgiven after 60 months, but it must be repaid in full if you sell or refinance before then, and one borrower has to complete a homebuyer education course before closing. Arizona Is Home, the other Arizona IDA program, ran out of funds and was retired for the rest of 2026 as of October 6, 2026.
Blake's take: this is my guidance, not a statistic. Down payment assistance usually comes with a higher interest rate, so the monthly payment is often higher than a traditional loan. Qualifying under an income limit does not mean you should use the assistance. For most first time buyers I would rather see FHA at 3.5% down, a 3% conventional through HomeReady or Home Possible, VA at zero down, or USDA at zero down where the address qualifies. Read our down payment assistance in Arizona page before you sign up for a second lien.
The limit that matters more
For most first time buyers the real ceiling is not an income cap. It is the debt to income ratio, and it works the other way: lenders want enough income, not less of it.
Here is a quick example. Say you earn $89,920 a year, exactly the Maricopa HomeReady line. That is about $7,493 a month before taxes. If your total debts, including the new house payment, landed at 45% of that, your ceiling for all monthly debts would be about $3,372. A $350 car payment and $250 in student loans eat $600 of that before the house gets a dollar. Our debt to income ratio guide explains how lenders draw that line, and how much house can I afford in Arizona turns it into a price range.
Rates matter here too. Freddie Mac's survey had the 30 year fixed averaging 7.24% for the week of October 29, 2026. At that rate a $388,000 loan, roughly 3% down on a $400,000 home, runs about $2,644 a month in principal and interest before taxes, insurance and mortgage insurance.
What if you are over the line?
You lose access to that program, not to homeownership. Here is what changes.
- Over 80% of AMI: you move from HomeReady or Home Possible to a standard conventional loan, or to FHA. You can still put a small amount down. You may pay a bit more in mortgage insurance or pricing.
- Over the USDA limit: FHA or conventional, usually. Zero down is gone unless you have VA eligibility.
- Over the Home Plus limit: honestly, for most buyers that is fine. See the take above.
PMI on a conventional loan does not last forever either. The CFPB says you can ask to cancel it when your balance is scheduled to reach 80% of the home's original value, and it ends automatically at 78% if you are current. A conventional loan without the income perks is still a strong first loan for plenty of buyers.
When you start looking at homes, you can browse current listings on Arizona Luxury Property Search, then bring the address back to us so we can check the exact AMI for that tract. For everything else on buying your first place, go back to the Arizona first time buyer guide, or read more about how I work on my page.
Honest caveat: do not quit a side job or skip a raise to slip under an income line. The savings from these programs are real, but they are rarely worth more than the income itself. If you are close, talk it through before you change anything.
Sources
- Fannie Mae, 2026 Income Eligibility by County file (2026 AMI and 80% limits by county; AMI also used for certain price adjustment waivers) and HomeReady page (down payments as low as 3%), checked November 3, 2026
- Freddie Mac, Home Possible page (qualifying income limited to 80% of AMI; 97% LTV for one unit; reduced MI coverage above 90% LTV), checked November 3, 2026
- HUD FHA Mortgage Limits lookup, CY2026, Maricopa and Pinal counties ($557,750 one unit), checked November 3, 2026
- HUD, FHA loans page (down payment as low as 3.5%), checked November 3, 2026
- FHFA, Conforming Loan Limit Values for 2026 ($832,750), released November 25, 2025, checked November 3, 2026
- VA, Purchase loan page, checked November 3, 2026; VA income rule from Blake Hermann's VA guideline reference (VA Pamphlet 26-7)
- USDA Rural Development, Single Family Housing Guaranteed Loan Program page (income up to 115% of median household income, 100% financing) and USDA property eligibility map, checked November 3, 2026
- Arizona IDA, Home Plus 2026 income limit notice (April 6, 2026, $155,386), Home Plus program page, and Arizona Is Home update (October 5, 2026), checked November 3, 2026
- Freddie Mac Primary Mortgage Market Survey, week of October 29, 2026 (30 year fixed 7.24%), checked November 3, 2026
- CFPB, When can I remove private mortgage insurance (PMI) from my loan? (last reviewed August 28, 2026), checked November 3, 2026
This article is general information from Pillar Mortgage Group, not a loan offer or a commitment to lend. Income limits, loan limits, program rules and rates change, and every loan is subject to credit approval. Pillar Mortgage Group, LLC, NMLS #2700076, Arizona License MB-2009671, Equal Housing Lender.
Frequently asked questions
Is there an income limit for first time home buyers in Arizona?
Not for most loans. FHA, VA and standard conventional mortgages have no income cap. Income limits apply to specific programs: HomeReady and Home Possible cap qualifying income at 80% of area median income, USDA caps it at 115% of the area median, and Arizona IDA's Home Plus caps it at $155,386 for 2026.
What is the HomeReady income limit in Maricopa County for 2026?
Fannie Mae's 2026 income eligibility file lists Maricopa County's area median income at $112,400, so the 80% HomeReady limit is $89,920. Pinal County has the same figures. Pima County's 80% limit is $79,840.
Does FHA have an income limit?
No. FHA caps the loan amount instead of your income. In Maricopa and Pinal counties the 2026 FHA limit for a single family home is $557,750. What actually limits you on FHA is your debt to income ratio.
What is the Home Plus income limit in Arizona for 2026?
Arizona IDA raised the 2026 Home Plus borrower income limit to $155,386, effective with its April 6, 2026 notice. It is based on the borrower's pre-tax gross income as calculated by the lender for the first mortgage approval.
Can I make too much money for a first time home buyer loan?
You can make too much for HomeReady, Home Possible, USDA or Home Plus, but not for FHA, VA or a standard conventional loan. Going over a program limit usually just means using a different loan, often with a few more dollars of mortgage insurance or pricing.
Does my spouse's income count toward the income limit?
It depends on the program. Freddie Mac says Home Possible limits qualifying income, meaning the income used to qualify for the loan. USDA measures income against median household income. Home Plus uses the borrower's gross income as the lender calculates it. Ask your lender which income each program counts before you decide who goes on the loan.
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Pillar Mortgage Group, LLC is a licensed mortgage brokerage based in Scottsdale, AZ. Company NMLS# 2700076 | Arizona License MB-2009671 | Equal Housing Lender.
9089 E Bahia Dr 101A, Scottsdale, AZ 85260
This content is for informational and educational purposes only and does not constitute financial, legal, or tax advice. Mortgage rates, loan programs, and market conditions are subject to change without notice. Not a commitment to lend. All loans subject to credit approval. Third-party market data sourced from publicly available information. Pillar Mortgage Group conducts business in accordance with the Fair Housing Act and the Equal Credit Opportunity Act.
