Historic home renovation loans for buying in Phoenix

At a glance

Which historic home renovation loan fits a Phoenix purchase?

Start with two questions: how much will you borrow, and does the work touch the structure? The first picks between FHA and conventional loans, and the second picks between the two versions of the FHA loan. Whether you'll live in the house is the third question, because the FHA loan is for primary residences only.

Historic home renovation loan limits by district

The Maricopa County Assessor's median full cash value for single-family homes, for tax year 2027, gives a rough sense of where each district falls. It's the Assessor's figure, not a sale price, so treat it as a first sort and check recent sales before you choose a loan.

The FHA limit caps the loan, not the price. If you agree a price of $700,000, an FHA loan stops at $557,750, so you'd bring the other $142,250, plus any work the loan doesn't cover, in cash. A sale price can also land above the Assessor's figure, so a Coronado or F.Q. Story house priced near the FHA limit may tip over it. That's why the conventional programs usually fit Willo and Roosevelt better.

FHA 203(k) as a historic home renovation loan

FHA's 203(k) program insures one loan for both the purchase and the rehabilitation. You can put down as little as 3.5 percent, on a one- to four-unit home you'll live in, and the loan can cover an attached ADU. It comes in two versions.

Limited 203(k) for historic home systems and finishes

The Limited 203(k) finances up to $75,000 of non-structural work. FHA raised the cap from $35,000 and the work period from six months to nine for case numbers from November 4, 2024, and in June 2026 it raised the number of draws to four per contractor. The work list fits an older Phoenix house well: lead-based paint stabilization, plumbing, heating, air conditioning, electrical, roofing, siding, gutters and porches. A 203(k) consultant is optional.

Standard 203(k) for structural historic home work

The Standard 203(k) is for major work: structural changes, foundation repair and even rebuilding on the existing foundation. It needs at least $5,000 of work, has no set maximum beyond the FHA limit, and gives you 12 months to finish. A HUD-approved 203(k) consultant is required; the consultant inspects the house, writes up the work and cost estimate, inspects each draw and makes sure permits are pulled.

203(k) draws on a historic home renovation

Contractors are paid after the consultant and you inspect the work, by two-party checks to you and the contractor. The contractor must have permits before starting, which in an HP district means the City's historic approval comes first. FHA allows a contingency reserve of up to 15 percent, and up to half of material costs can be drawn up front.

Conventional historic home renovation loans: HomeStyle and CHOICERenovation

Fannie Mae's HomeStyle Renovation and Freddie Mac's CHOICERenovation work the same way, against an "as completed" appraisal of the house after the work, and both allow a 20 percent contingency reserve.

Fannie Mae HomeStyle on a historic home purchase

On a purchase, HomeStyle caps renovation costs at 75 percent of the lesser of the price plus the work or the as-completed value. The loan can't exceed Fannie Mae's conventional limit, and loan-to-value goes up to 97 percent on a one-unit home you live in. It's also open to one-unit second homes and investment properties. If you can't live in the house during the work, HomeStyle can finance up to six months of mortgage payments, and a "do it yourself" option allows up to 10 percent of the as-completed value with the lender's approval. Your own labor can't count toward the costs.

Freddie Mac CHOICERenovation for historic home repairs

CHOICERenovation caps financed work at 75 percent of the as-completed value and can pay for resilience and disaster-repair work. Like HomeStyle, it covers primary residences, second homes and investment properties. For both programs, completion is confirmed with an appraisal update and completion report (Form 1004D).

2026 loan limits for a historic home renovation loan in Maricopa County

FHA 203(k) mortgage limit for two units

The 2026 FHA limit for a two-unit property in Maricopa County is $714,000, effective January 1, 2026. That matters in the older districts, where many lots carry a house and a guest house. Historic districts hold about 15 percent of Phoenix's parcels with two housing units, though they cover about 1 percent of its land.

Planning a historic home renovation loan around Phoenix HP review

Renovation loans run on a clock: 9 months for a Limited 203(k) and 12 for a Standard. In an HP district, exterior work that needs a permit also needs a City certificate first, so the historic approval belongs at the front of your schedule.

HP approval timeline inside a renovation mortgage

Minor work, such as a rear patio cover, a side carport, rear solar or replacement roofing in an accepted material, usually gets a Certificate of No Effect over the counter or within days. A large addition, a new garage or a change visible from the street needs a Certificate of Appropriateness: a pre-application meeting usually 3 to 4 weeks out, a completeness check of up to 10 days, a hearing within 20 days and a 5-day appeal period. That's about two months before the contractor can pull a permit, so ask for the pre-application meeting while you're under contract. The Phoenix historic preservation zoning guide lists which jobs qualify for the quick approval.

Exterior Rehabilitation Grant alongside a renovation mortgage

The City's Exterior Rehabilitation Grant pays back 50 percent of approved exterior work, $5,000 to $20,000 per property, in up to three draws after the work is invoiced, with checks mailed within 45 days. In exchange the City takes a conservation easement, and every mortgage lender on the house has to consent to it; the City's guide calls lender delays the biggest obstacle. If you plan to apply, tell your loan officer before closing. The 2026 round is closed, and the City expects to publish 2027 round details in July 2027.

Appraisals and down payment help for a Phoenix historic home

Appraisal comparables for a historic home

Appraisals need at least three closed comparable sales, ideally from the same neighborhood and within 12 months. Where truly similar sales are scarce because of what the house is, the appraiser can use less similar or older sales with an explanation, or sales from competing neighborhoods, but can't stretch the neighborhood boundary to reach them. In a small district where few houses sell each year, expect the appraiser to work harder for comparables, and give the lender extra time.

Arizona Home Plus for a historic home purchase

The Arizona Industrial Development Authority's Home Plus program gives up to 4 percent toward the down payment and closing costs, through a participating lender. As of April 6, 2026, household income can't exceed $155,386, and one borrower must take a homebuyer education course. The assistance is a no-interest second mortgage forgiven after five years, repaid if you sell or refinance sooner. It isn't limited to first-time buyers.

Phoenix Open Doors for first-time historic home buyers

The City's Open Doors program offers first-time buyers with household income at or below 80 percent of area median a 0 percent deferred loan of up to 10 percent of the price, forgiven after the affordability period. Funding is limited and its price cap may have changed, so confirm with Phoenix Housing at 602-262-6794. The Historic Preservation Office itself offers no purchase help.

Federal tax credit and a historic home loan

The 20 percent federal rehabilitation tax credit applies only to income-producing property. If you'll live in the house, it doesn't apply. If you're buying a historic rental with HomeStyle or CHOICERenovation, the credit can apply, with the rules in our Arizona historic property tax guide. Joe Janus can connect the loan plan to the house: he'll pull the zoning and contributor status before you apply. See every step of buying a historic home in Phoenix.

Historic home renovation loan FAQs