Arizona ConventionalHome Loans
Arizona's most versatile home loan — 3% down for first-time buyers, cancelable PMI, and competitive rates for good credit. Finance your Phoenix, Scottsdale, or Tucson home with the most widely-used loan in the country.
What is a Conventional Loan?
A conventional loan is a mortgage not backed by a government agency like FHA or VA. That distinction gives it broader flexibility: you can use one to buy a primary home, second home, or investment property across Arizona.
Conventional loans follow guidelines set by Fannie Mae and Freddie Mac, giving lenders the ability to offer a wide range of terms, rate structures, and property types — from a Mesa starter home to a Scottsdale investment condo.
For buyers with a 620+ credit score and steady income, conventional financing typically delivers the best combination of rates, flexibility, and long-term cost.
For a deeper educational overview, read our conventional loan guide.
Conventional Loan Benefits
From low down payments to cancelable PMI, here's why most Arizona buyers choose conventional.
Flexible Down Payment
First-time Arizona buyers can put as little as 3% down. Repeat buyers qualify with 5% down. Put 20% down and skip PMI entirely.
PMI Cancellation
Unlike FHA mortgage insurance, conventional PMI is cancelable. Once your loan reaches 80% LTV — whether from payments or rising Arizona home values — you can request removal.
Multiple Property Types
Buy a primary residence in Phoenix, a vacation home in Sedona, or an investment property in Mesa — conventional loans cover all Arizona property types.
Competitive Rates
Borrowers with good credit typically get the most favorable rates on conventional loans — and a strong 740+ score can unlock the best pricing tiers available.
Fixed or Adjustable
Lock in a 30-year fixed for predictable payments, or consider an ARM if you plan to move or refinance within 5–7 years. We'll help you choose what fits your Arizona plans.
Higher Loan Limits
The 2026 conforming loan limit is $832,750 in all Arizona counties. Loans above that threshold require jumbo financing — we handle both.
Conventional vs. Government Loans
Conventional
- 3-20% down payment
- 620+ credit score
- PMI removable at 20% equity
- All property types
- No upfront funding fee
FHA
- 3.5% minimum down
- 580+ credit score
- MIP for life of loan
- Primary residence only
- 1.75% upfront MIP
VA
- 0% down payment
- No minimum (lender varies)
- No PMI ever
- Military only
- 2.15% funding fee
Conventional Loan Requirements
Credit Score
A minimum 620 credit score is required for most conventional programs. The best rate tiers kick in at 740+. We'll show you where you stand and what it takes to get there.
Down Payment
First-time Arizona buyers need as little as 3% down. Repeat buyers need 5% minimum. Putting 20% down eliminates PMI and reduces your monthly payment immediately.
Debt-to-Income Ratio
Maximum 45% DTI for most conventional borrowers. Strong compensating factors — like significant reserves — can allow up to 50% with Fannie Mae Desktop Underwriter approval.
Employment Verification
Two years of consistent employment or income history is standard. Self-employed Arizonans and business owners are welcome — we'll work through your documentation to build the strongest possible file.
Property Appraisal
The property must appraise at or above the purchase price. Conventional appraisal standards are less restrictive than FHA, making it easier to buy fixer-uppers or older Arizona homes.
Reserves
Some conventional programs require 2–6 months of mortgage payments held in verified savings after closing. Higher reserve balances can also help offset a higher DTI ratio.
Conventional Loan FAQ
Ready for a Conventional Loan?
Get pre-approved in as little as 24 hours and make offers in Arizona's competitive market with confidence. Our local team is ready to help you move fast.