Conventional Loans Arizona
Conventional loans in Arizona are mortgages not backed by a government agency like FHA, VA, or USDA, and they remain the most common financing option for Arizona homebuyers with steady income and reasonably strong credit. With down payments starting as low as 3% for qualified first-time buyers and the ability to cancel mortgage insurance once you build equity, conventional loans often cost less over time than government-backed alternatives. Contact Todd Uzzell at 480-330-1724 for fast pre-qualification and expert guidance.
Why Choose a Conventional Loan in Arizona?
Low Down Payment Options
Conventional loans allow as little as 3% down for qualified first-time buyers, and 5% for repeat buyers. Higher down payments (20%+) eliminate mortgage insurance entirely.
Cancelable Private Mortgage Insurance (PMI)
Unlike FHA mortgage insurance, which often lasts the life of the loan, conventional PMI can be removed once your loan balance reaches 80% of your home's value — saving you money for the rest of your loan term.
Fixed and Adjustable Rate Options
Choose a 15, 20, or 30-year fixed rate for payment stability, or an adjustable-rate mortgage (ARM) for a lower initial rate if you plan to sell or refinance within a few years.
No Upfront Mortgage Insurance Fee
FHA loans charge an upfront mortgage insurance premium financed into your loan. Conventional loans have no equivalent upfront fee, which can mean a lower loan balance at closing.
Ideal for Strong Credit Borrowers
Borrowers with credit scores of 680 and above typically get the most competitive conventional rates. Higher scores unlock better pricing on both rate and PMI cost.
Works for Primary, Second Homes & Investment Properties
Unlike government-backed loans, conventional financing isn't limited to primary residences — it's also available for second homes and investment properties in Arizona, with adjusted down payment requirements.
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Start Your ApplicationSchedule Free ConsultationFrequently Asked Questions
What credit score do I need for a conventional loan in Arizona?
Most lenders require a minimum credit score of 620, though the best rates and lowest PMI costs go to borrowers with scores of 680 or higher.
How much down payment do I need?
As little as 3% for qualified first-time buyers, 5% for repeat buyers. Putting down 20% or more eliminates PMI entirely.
What's the difference between conventional and FHA loans?
Conventional loans have stricter credit requirements but offer cancelable PMI and no upfront mortgage insurance fee. FHA loans have more flexible credit requirements but carry mortgage insurance that often lasts the life of the loan.
Can I remove PMI from my conventional loan?
Yes. Once your loan balance reaches 78-80% of your home's original value, you can request PMI cancellation, either through scheduled amortization or a new appraisal showing increased equity.
What are conforming loan limits in Arizona for 2026?
Most Arizona counties follow the standard conforming loan limit set annually by the FHFA. Loans above this limit are considered jumbo loans and have different qualification requirements.
Can I use a conventional loan for an investment property?
Yes, though down payment requirements are typically higher (15-25%) than for a primary residence, and interest rates run slightly higher as well.
What's my debt-to-income ratio limit?
Most conventional loans allow a debt-to-income ratio up to 45-50%, depending on your credit score, down payment, and other compensating factors.
Do conventional loans require an appraisal?
Yes, in nearly all cases. The appraisal confirms the home's value supports the loan amount and protects both you and the lender.
Can I combine a conventional loan with down payment assistance?
In some cases, yes. Certain Arizona down payment assistance programs can be layered with conventional financing, though eligibility and program terms vary. Todd Uzzell can help identify options that fit your situation.
Fixed rate or ARM — which is right for me?
A fixed rate offers payment stability for the life of the loan, ideal if you plan to stay long-term. An ARM offers a lower initial rate, which can make sense if you expect to sell or refinance within 5-7 years.
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About Todd Uzzell
Todd Uzzell (NMLS #1525192) is a licensed Arizona mortgage lender with Starboard Financial. Specializing in conventional loans arizona throughout Arizona.
Contact Todd:
Phone: 480-330-1724
Email: todd.uzzell@gmail.com