There’s good news for Phoenix-area home buyers in 2025. The maximum loan limits for both conventional and FHA-insured mortgage loans have gone up due to rising home prices.
This increase applies to all cities located within the Phoenix-Mesa-Chandler metropolitan area, including Maricopa County and Pinal County.
At a glance: The Phoenix-area FHA loan limit has gone up to $546,250 for a one-family property, while the conforming limit is now $806,500.
Phoenix FHA Loan Limits 2025
At the end of 2024, officials from the Department of Housing and Urban Development (HUD) announced they would be increasing the official loan limits for FHA-insured mortgages in 2025. They made this change in response to home price gains that occurred last year.
All counties in Arizona will have higher FHA loan limits in 2025, including those within the Phoenix metropolitan area. This means borrowers who use this program have a higher range of financing to work with and could therefore buy a more expensive home.
Here are the 2025 FHA loan limits for the Phoenix area:
- One-family (regular home): $546,250
- Two-family (duplex): $699,300
- Three-family (triplex): $845,300
- Four-family (fourplex): $1,050,500
These limits apply to both Maricopa County and Pinal County. The maximum size for an FHA loan is typically the same across an entire metro area, as is the case here. So these revised limits apply to the cities of Phoenix, Mesa, Chandler, Scottsdale, Glendale, etc.
According to the HUD news release that announced this change:
“Federal Housing Administration (FHA) is announcing new loan limits for calendar year 2025 for its Single Family Title II forward and Home Equity Conversion Mortgage (HECM) mortgage insurance programs. Loan limits for most of the country will increase in the coming year due to the continued appreciation of home prices over the past year.”
The takeaway: For home buyers who want to use an FHA loan to buy a single-family home in the Phoenix area in 2025, the maximum size limit will be $546,250.
Phoenix-Area Conforming Loan Limits
The maximum loan limit for conforming mortgage loans has also gone up for 2025, and this applies to the entire Phoenix metro area.
A “conforming” loan is a conventional (non-FHA) mortgage loan that meets the size restrictions and other parameters used by Freddie Mac and Fannie Mae, the government-sponsored corporations that buy home loans from lenders.
Conforming loan limits can vary from one metro area to the next, because they are based on median home values. If a person takes out a conventional mortgage that exceeds the conforming cap for their county, they may have to use a jumbo loan with stricter criteria.
Here are the 2025 conforming loan limits for the Phoenix area:
- One-unit home: $806,500
- Two-unit home (duplex): $1,032,650
- Three-unit home (triplex): $1,248,150
- Four-unit home (fourplex): $1,551,250
These limits apply to both Maricopa County and Pinal County, which means they cover most of the Phoenix metro area including the cities of Scottsdale, Mesa, Chandler, etc.
According to the FHFA news release that announced the loan limit increase:
“The Federal Housing Finance Agency (FHFA) today announced the conforming loan limit values (CLLs) for mortgages acquired by Fannie Mae and Freddie Mac (the Enterprises) in 2025. In most of the United States, the 2025 CLL value for one-unit properties will be $806,500, an increase of $39,950 (or 5.2 percent) from 2024.”
The takeaway: For buyers who want to use a regular home loan to buy a single-family home in the Phoenix metro area in 2025, the maximum size limit will be $806,500. If you need to borrow more, you’ll probably have to use a jumbo mortgage, portfolio loan, or other alternatives.
How They Compare to Current Home Prices
If you buy a moderately priced home in the Phoenix metro area, the loan limits mentioned above shouldn’t create any additional obstacles for you.
In January 2025, the median home price for the Phoenix-Mesa metropolitan area was around $454,000 (per Zillow). That’s about $100,000 less than the single-family FHA loan limit for this market, and it’s well below the limit used for conventional mortgages.
Because of this, most home buyers should be able to finance a home purchase in the Phoenix metro area without exceeding these mortgage limits or having to rely on jumbo financing.
Here’s a summary of median home prices at the start of 2025, for the largest cities in the Phoenix metropolitan area (in descending order by population).
| City | Median Price Jan. 2025 |
| Phoenix | $414,977 |
| Mesa | $438,978 |
| Chandler | $529,748 |
| Gilbert | $576,388 |
| Glendale | $411,100 |
| Scottsdale | $827,351 |
| Peoria | $490,846 |
| Tempe | $480,318 |
In most parts of The Valley, median home prices fall below the official loan limits. Because of this, borrowers in those cities can usually find a home that falls within the official FHA or conforming loan range.
Scottsdale, Arizona is the obvious exception, with a median price north of $800,000. Many home buyers in Scottsdale have to rely on jumbo mortgage financing, since many homes in that city are priced above both the FHA and conforming loan limits.
The takeaway: A more expensive housing market increases the chance that the average home buyer will exceed the loan limits and have to use a jumbo mortgage instead.
What’s the Big Deal About Jumbo Mortgages?
We’ve mentioned the term “jumbo mortgage” throughout this guide, without fully explaining it. Here’s what you need to know about this terminology.
When it comes to the size of conventional (non-FHA) home loans, there are two main types:
- Conforming: These loans fall within the size limits mentioned above and can therefore be sold to Fannie Mae and Freddie Mac. In the Phoenix area, a conforming loan is anything up to $806,500, for a single-family home.
- Jumbo: A jumbo mortgage, on the other hand, is a conventional home loan that exceeds the conforming limit for the county in which the home is located. In the Phoenix area, a jumbo loan is anything above $806,500, for a single-family home.
Jumbo loans typically require larger down payments and higher credit scores. Not just anyone can qualify for this level of financing. You have to be well qualified, financially speaking.
Many mortgage lenders in the Phoenix area require down payments of 10% or more for jumbo products—even 20% in some cases. In contrast, smaller conforming loans often allow for a lower down payment in the 3% to 5% range.
Lenders typically want jumbo borrowers to have a stronger credit history as well, typically requiring a credit score of 700 or higher. They do this to reduce risk and minimize losses. In contrast, smaller conforming loans might allow for a much lower credit score.
The takeaway: Borrowers seeking a jumbo loan should expect stricter criteria from lenders, when compared to those seeking a smaller conforming mortgage amount.
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