Conventional Loans

Conventional Loans are the most popular of the loan programs. Conventional loans are NOT guaranteed by government agencies, such as FHA, VA or Department of Agriculture (USDA loans).

As of 2019 the conforming loan limit on conventional, residential loans in Arizona are $484,350.00 for financing homes, condos, duplexes, four-plexes, manufactured homes. Categories include primary residences, second homes, and investment or rental properties.

Note: Mortgage loan amounts over $484,350 are considered Jumbo loans and are in a different lending category.

Benefits of a Conventional Loan:

  • Conforming primary residence mortgages are available for as little as 3% down payment. For loans less than 20% down, mortgage insurance is required.*
  • Fannie Mae and Freddie Mac offer programs for underserved geographical areas and for borrowers with incomes under the area medium incomes.
  • The mortgage insurance is not permanent if payments have been made in a timely manner.
  • Non-occupant Co-Borrowers are allowed on loans with at least 5% down payment.
  • Rehabilitation loans are available for as little as 5% down.

*Monthly mortgage insurance amounts have dramatically changed for the better over the past two years.

Interest Rates for conventional loans are determined by the down payment amount, the type of program (Fixed rate? Adjustable rate?), and the credit score.

Contact either 480-831-1588 or 480-235-5667 for more details