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Your Path to Homeownership Starts Here

Conventional Loans give you flexibility, predictable payments, and the freedom to choose your property type—primary, second home, or investment.

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What are conventional loans?

Conventional loans are home mortgages that are not insured or guaranteed by government agencies such as the FHA, VA, or USDA. Instead, they are provided by private lenders and typically follow the underwriting standards established by Fannie Mae and Freddie Mac.

Conventional financing is frequently preferred because it offers:

  • Flexibility in property types, including primary residences, second homes, and investment properties
  • Predictable monthly payments, with both fixed-rate and adjustable-rate structures available
  • Competitive interest rates for well-qualified borrowers
  • The ability to remove private mortgage insurance (PMI) once you achieve 20% equity

For borrowers with strong—or steadily improving—credit profiles, a conventional loan can be a versatile, cost-efficient way to secure long-term financing on a home or investment property.

 

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How Conventional Loans Work

Step 1: Apply Online

Begin with a fast, secure online application from any device. Share a few key details—such as income, employment, and your estimated credit score—so we can quickly assess your options.

Step 2: Get pre-approved

We conduct a thorough review of your credit profile, income, assets, and debt-to-income (DTI) ratio. A solid credit score (typically 620+), paired with reliable income, positions you for the most competitive terms.


Key Terms to Know:

  • Conforming Loan Limits: In Maricopa County, the 2025 conforming loan limit is $766,550 for a single-family residence.
  • PMI (Private Mortgage Insurance): Generally required with less than 20% down, and eligible for removal once you build at least 20% equity.
  • DTI Ratio: For most conventional approvals, an ideal target is a DTI at or below 45%.

Step 3: Shop for Your Home

With your pre-approval letter ready, you can submit offers with confidence. Conventional financing supports primary residences, second homes, and investment properties—giving Phoenix buyers room to plan for both personal use and long-term rental income.

 

Step 4: Close Confidently

After your offer is accepted, we finalize underwriting, lock in your rate, and coordinate your closing date. You’ll sign your documents, fund the loan, and move forward with stable, predictable monthly payments from day one.

Local Insight: In the Phoenix market—where home values have shown sustained growth—conventional loans remain a preferred choice for buyers who prioritize fixed-rate stability and long-term equity building.

 

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Conventional Loan Types Comparison

Feature
What it is
Best for
Benefits
Fixed-Rate Mortgage
Interest rate and monthly payment stay the same for the life of the loan.
Buyers who want stability and plan to stay in their home long-term.
Predictable payments, easier budgeting.
Adjustable-Rate Mortgage (ARM)
Starts with a lower fixed rate for an initial period, then adjusts based on market conditions.
Buyers who plan to move or refinance before the adjustment period.
Lower initial payments, potential short-term savings.

Loan Size Comparison

Feature
What it is
Phoenix 2025 Limit
Best for
Benefits
Conforming Loan
Meets Fannie Mae and Freddie Mac guidelines, including loan limits.
$766,550 for a single-family home.
Most homebuyers purchasing within standard price ranges.
Easier approval, lower rates, smaller down payment options.
Jumbo Loan
Exceeds conforming loan limits for higher-priced homes.
Above $766,550 for a single-family home.
Luxury or high-value properties in competitive markets like Phoenix.
Flexible terms, finance larger homes without multiple loans.

Qualification Checklist

1 Credit Score
Minimum of 620+ (higher scores may secure better rates)
2 Down Payment
As low as 3% for first-time buyers; 5–20% for others
3 Debt-to-Income Ratio (DTI)
Ideally under 45%
4 Stable Income & Employment
Two years of consistent work history preferred
5 Documentation
  • Recent pay stubs
  • W-2s or tax returns
  • Bank statements for assets and reserves

Frequently Asked Questions

What is PMI and how do I remove it?

Private Mortgage Insurance is required if your down payment is under 20%. You can request removal once you reach 20% equity, or it automatically drops at 78% loan-to-value.

What’s the minimum down payment for a conventional loan?

As low as 3% for first-time buyers; typically 5–20% for others.

 

Can I use a conventional loan for an investment property?

Yes! Conventional loans allow financing for primary homes, second homes, and investment properties.

 

What’s the loan limit in Phoenix for 2025?

The conforming loan limit for Maricopa County is $766,550 for a single-family home.

 

Fixed vs. ARM—Which is better?

Fixed-rate loans offer stability with consistent payments. ARMs start lower but adjust over time—great if you plan to move or refinance within a few years.

Ready to Take the Next Step?

Lock in your rate today and move confidently toward owning your home. Our streamlined process keeps every step fast, secure, and as stress‑free as possible.

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