Arizona Conventional Home Loans
Conventional loans are the most popular type of mortgage in Arizona, offering competitive rates, flexible terms, and various down payment options. These loans are not insured by government agencies and typically offer the best rates for borrowers with good credit.
Todd Uzzell Home Loans offers both Fannie Mae and Freddie Mac conventional loans with down payments as low as 3% for qualified first-time homebuyers and competitive options for all Arizona borrowers.
💡 Did You Know?
Conventional loans account for over 65% of all mortgage originations in Arizona, making them the preferred choice for most homebuyers.
Types of Conventional Loans
Fixed-Rate Mortgages
- • 30-year fixed rate - Most popular option
- • 15-year fixed rate - Higher payments, less interest
- • 20-year fixed rate - Balanced option
- • 10-year fixed rate - Fast payoff option
Interest rate remains the same for the entire loan term, providing payment stability.
Adjustable Rate Mortgages (ARM)
- • 5/1 ARM - Fixed for 5 years, then adjusts
- • 7/1 ARM - Fixed for 7 years, then adjusts
- • 10/1 ARM - Fixed for 10 years, then adjusts
- • Lower initial rates than fixed mortgages
Initial fixed period followed by periodic rate adjustments based on market conditions.
Conventional Loan Down Payment Options
First-Time Buyers
3% down payment for qualified first-time homebuyers
Standard Option
5% down payment for most conventional loans
Preferred Option
10% down for better rates and terms
No PMI
20% down eliminates private mortgage insurance
Conventional Loan Benefits
Competitive Rates
Often the lowest rates available for qualified borrowers
Higher Loan Limits
Loan amounts up to $766,550 in most Arizona counties
Flexible Guidelines
Various credit score and income requirements
Removable PMI
Private mortgage insurance can be removed at 20% equity
Fast Processing
Streamlined underwriting for quicker closings
Refinance Options
Rate-and-term and cash-out refinancing available
Conventional Loan Requirements
Credit & Income
- • Minimum credit score: 620 (3% down programs)
- • Preferred credit score: 740+ for best rates
- • Debt-to-income ratio: Up to 50% in some cases
- • Stable employment history (2+ years preferred)
- • Verifiable income documentation
Assets & Documentation
- • Down payment funds (gift funds allowed)
- • 2-6 months of mortgage payments in reserves
- • Recent pay stubs and W-2 forms
- • Bank statements (2 months)
- • Tax returns (2 years for self-employed)
Conforming vs Non-Conforming Loans
Conforming Loans
Meet Fannie Mae and Freddie Mac guidelines and loan limits.
- • 2025 loan limit: $766,550 (most Arizona counties)
- • High-cost areas: Up to $1,149,825
- • Best rates and terms available
- • Standardized underwriting guidelines
Non-Conforming Loans
Exceed conforming loan limits or have unique features.
- • Jumbo loans above conforming limits
- • Bank portfolio loans with flexible guidelines
- • Higher rates than conforming loans
- • Custom underwriting criteria
Conventional Loans Throughout Arizona
We provide conventional financing throughout Arizona, with expertise in local markets and property values.
Phoenix Metro Area
Tucson Area
- • Tucson - Historic and modern homes
- • Oro Valley - Master-planned communities
- • Marana - Growing suburban market
- • Sahuarita - Family-friendly neighborhoods
- • Vail - Rural and estate properties
Statewide Coverage
- • Flagstaff - Mountain community homes
- • Sedona - Resort and vacation properties
- • Prescott - Retirement communities
- • Yuma - Agricultural area homes
- • Lake Havasu - Waterfront properties
First-Time Homebuyer Conventional Options
Fannie Mae HomeReady®
- • 3% down payment minimum
- • Flexible credit requirements
- • Income from boarders can qualify
- • Available for low-to-moderate income borrowers
- • Online homebuyer education required
Freddie Mac Home Possible®
- • 3% down payment option
- • Reduced mortgage insurance rates
- • Flexible income sources accepted
- • Available in most Arizona areas
- • Homebuyer counseling available
Private Mortgage Insurance (PMI)
When PMI is Required
- • Down payments less than 20%
- • Protects lender in case of default
- • Typically 0.3% to 1.5% of loan amount annually
- • Added to monthly mortgage payment
PMI Removal Options
- • Automatic removal at 22% equity
- • Request removal at 20% equity
- • Reappraisal to confirm home value increase
- • Refinancing to eliminate PMI
Related Loan Programs
Conventional Loan Resources
Government Agencies
- • Fannie Mae
- • Freddie Mac
- • Loan guidelines and programs
Market Information
- • FHFA Loan Limits
- • Current conforming loan limits
- • Market trends and data
Consumer Tools
- • CFPB Mortgage Resources
- • Mortgage calculators
- • Consumer protection information
Get Started with Conventional Loans
Contact Our Loan Specialists
Phone
480-330-1724Fast Pre-Approval
Get pre-approved for a conventional loan and start shopping with confidence in Arizona's competitive market.
Apply for Pre-ApprovalReady for a Conventional Loan in Arizona?
Get competitive rates and flexible terms with Arizona's trusted mortgage lender.