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Loan

Conventional loans in Arizona

The loan most buyers use, with many lenders competing for it.

Ask about this loanHow applying works

What it is

How it works

A conventional loan is not backed by a government program. Costs depend on your loan size, your down payment, and mortgage insurance. We compare it against FHA and VA before you choose.

Who it fits

  • Buyers with steady income and established credit.
  • Buyers who want mortgage insurance they can cancel later.
  • Buyers of a second home or a rental property.
  • Owners refinancing out of an FHA loan once they have equity.

Key facts

Good to know

  • A conventional loan is not insured or guaranteed by a government agency.
  • Most follow Fannie Mae and Freddie Mac rules and stay under the conforming loan limit, which the FHFA sets each year.
  • With a smaller down payment, the lender adds private mortgage insurance (PMI).
  • You can ask to cancel PMI once your balance falls far enough against the home's original value, and federal law ends it automatically at a set point.
  • You can choose a fixed rate or an adjustable one, and a shorter or longer term.

Calculator

Estimate a payment

You choose every number. The weekly average is a starting point, not a quote.

Payment

Move any number. The math runs on this device and nothing is sent.

$

$70,000 down

U.S. average the week of Nov 5. Not a quote.

Term
$
$
$

Monthly payment

$1,896.82/ month

Sample: $350,000 home, 20% down ($70,000), 360 monthly payments of $1,896.82 on a 30-year fixed loan at 7.18% interest (7.18% APR, assuming no points or fees). Taxes and insurance are extra, so your real payment will be higher. Not a quote.

Principal and interest
$1,896.82

Add tax and insurance for the full payment.

Loan amount
$280,000
Down payment
$70,000

Over 30 years

  • Principal$280,000
  • Interest$402,855

First payment: $221.49 principal and $1,675.33 interest.

This is an estimate, not a loan offer. A lender has to confirm it.

This is not a commitment to lend or lock a rate.

Rates change. Call us. (480) 297-8855

Costs and limits

What it costs

The kinds of costs, not amounts. Your Loan Estimate lists the numbers.

Costs to expect

  • Private mortgage insurance when you put less down. Its cost depends on your credit and the loan.
  • No upfront government premium or funding fee.
  • The usual closing costs. The seller can pay some, up to the program's limit.

Limits

  • The loan must stay under the conforming limit for the county. Above it is a jumbo loan.
  • Credit and debt rules are often stricter than for FHA.
  • Second homes and rentals have their own rules on savings and credit.

Compared

How it compares

Next to FHA loans in Arizona.

  • A conventional loan's PMI can be cancelled. FHA's yearly premium often stays unless you refinance.
  • A conventional loan has no upfront premium. FHA adds one to the loan.
  • FHA can be more forgiving of past credit trouble. A conventional loan usually prices stronger credit lower.
  • A conventional loan can buy a main home, a second home, or a rental. FHA is for a main home only.

Read about FHA loans in Arizona

The process

From first call to closing

  1. Talk

    A short call about your goals, your timeline, and the kind of home you want. Ask us anything.

  2. Apply

    You fill out the application online. It asks for your Social Security number and documents, and we give you a clear list of what to send.

  3. Compare

    We compare lenders for your loan and show you the options side by side, with the tradeoffs explained.

  4. Close

    We stay with you through appraisal, underwriting, and signing, and keep you posted at each step.

Questions

Questions about this loan

Not here? Call (480) 297-8855.

Do I need a big down payment for a conventional loan?

Not always. Conventional loans allow smaller down payments with private mortgage insurance. Ask us what yours would be.

When does PMI come off?

You can ask to cancel it once you have built enough equity, if your payment history is good. Federal law ends it automatically at a set point based on the original value.

Should I pick a shorter or longer term?

A shorter term has a higher monthly payment and less interest over the life of the loan. A longer term lowers the payment and costs more interest. The calculator on this page shows both.

What is a conforming loan?

One that meets Fannie Mae and Freddie Mac rules, including the loan limit for your county. A loan above that limit is a jumbo loan.

Reviews

From a client

Read all reviews

Chance is someone you can trust from the begging to the end of the transaction. I'm grateful to have found him to help me with the purchase of my home. Chance answered all of my questions and concerns, in detail. Couldn't have done it with out him. Buying a home can be challenging in number of things from the seller, realtor, title, etc. Chance made it easy for me, to understand, trust and believe that I was making the right decision . Thank you Chance, from my daughter and I. Sincerely, Edith Peralta, MBA/CCC

Edith Peralta

Contact

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