Conventional Loans

Purchase imageConventional loans are mortgage loans not insured or guaranteed by the federal government.   A conventional mortgage may be considered a conforming or a non-conforming loan.  Many conventional loans in Arizona are conforming mortgages and adhere to the guidelines set by Fannie Mae and Freddie Mac. It may have either a fixed or adjustable rate. AZ Mortgage Broker, LLC offers conventional mortgages in Phoenix, as well as all of Arizona.  Fannie Mae and Freddie Mac are government sponsored entities and they buy and sell mortgages on the secondary market to make mortgages more available.  Fannie Mae and Freddie Mac do not guarantee or insure mortgages in case of default.

What is a Conventional Loan?

While many think that a 20% down payment is required for all conventional loans, many lenders now offer low down payment options.  Fannie Mae and Freddie Mac both offer a conventional conforming loan with as little as 3% down.  AZ Mortgage Broker, LLC also has access to some of the lowest mortgage insurance rates in the nation.  Let us use OUR advantage for YOUR advantage.

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Conforming vs. Non-Conforming Loans

Conventional loans are split into two types: conforming and non-conforming.  The conforming loan limit in Arizona is $484,350 for single units in 2019.  A non-conforming mortgage is a loan above the $484,350 maximum conforming loan amount in Arizona or a mortgage loan which does not meet the Fannie Fannie Mae or Freddie Mac guidelines.  AZ Mortgage Broker, LLC offers a high balance conforming loan between $484,350 and #726,525. These high balance conforming loans in Arizona are underwritten and priced similar to regular conforming loans.  Conforming loan limits have increased loan thresholds for 2-4 unit properties.

AZ Mortgage Broker, LLC knowledge drop:  FHA, USDA, and VA loans are not considered conventional loans.  FHA, USDA, and VA loans are insured or partially guaranteed against default by the government.  Conventional loans do not have government backed default protection. 

Benefits of Conventional Loans

Conventional loans are intended for borrowers with better income and credit scores, and have good rates and flexibility.  Conventional loans make up about 70% of the mortgage market.  While it is common for credit scores to be higher for conforming loan transactions, it is not uncommon to receive approvals with credit scores 620 and higher.  While not common,  we may do a manual underwrite with no credit score or a lower than 620 credit score.

Conventional Conforming Loan Limits

The Arizona Conventional Conforming Loan Limit is $484,350 in 2019.

Did you know the Arizona Jumbo Mortgage Advantage allows high balance conforming loans between $484,350 and $726,525?  

Get Pre-Approved for a Conventional Loan

If you are looking to purchase a home in Phoenix, or anywhere in Arizona, contact AZ Mortgage Broker, LLC at (602) 930-2529 for more information, or simply fill out the form on this page.