What are Conventional Loans and Conforming Loans?

By definition, a Conventional Loan is any mortgage that’s not guaranteed or insured by the federal government. Arizona conventional loans may be either “conforming” and “non-conforming”, although ‘conventional loans’ generally refer to ‘conforming loans’. Therefore Arizona conventional loan limits are the same thing as Arizona conforming loan limits.

2017 Arizona Conventional Loan Limits

What is the maximum amount that I can borrow?

Conventional loan limits in Arizona are determined by:

  • Arizona Conventional Loan LimitsMaximum LTV Ratio:  The maximum financing loan-to-value ratio for conventional mortgages is 80% – 97% of the appraised value of the home or its selling price, whichever is lower. Learn how to calculate loan-to-value.
  • Maximum Loan Amount: Conventional loan limits in Arizona are set at the floor amount of $424,100 across the entire state. Metro areas in AZ with a conforming limit of $424,100 include Phoenix, Flagstaff, Yuma and Tempe.

Search all Conventional Loan Limits in Arizona:

County Name
Area
1-Unit
2-Unit
3-Unit
4-Unit
APACHENON-METRO$424,100$543,000$656,350$815,650
COCHISESIERRA VISTA-DOUGLAS, AZ$424,100$543,000$656,350$815,650
COCONINOFLAGSTAFF, AZ$424,100$543,000$656,350$815,650
GILAPAYSON, AZ$424,100$543,000$656,350$815,650
GRAHAMSAFFORD, AZ$424,100$543,000$656,350$815,650
GREENLEENON-METRO$424,100$543,000$656,350$815,650
LA PAZNON-METRO$424,100$543,000$656,350$815,650
MARICOPAPHOENIX-MESA-SCOTTSDALE, AZ$424,100$543,000$656,350$815,650
MOHAVELAKE HAVASU CITY-KINGMAN, AZ$424,100$543,000$656,350$815,650
NAVAJOSHOW LOW, AZ$424,100$543,000$656,350$815,650
PIMATUCSON, AZ$424,100$543,000$656,350$815,650
PINALPHOENIX-MESA-SCOTTSDALE, AZ$424,100$543,000$656,350$815,650
SANTA CRUZNOGALES, AZ$424,100$543,000$656,350$815,650
YAVAPAIPRESCOTT, AZ$424,100$543,000$656,350$815,650
YUMAYUMA, AZ$424,100$543,000$656,350$815,650

Alabama conforming limits can change anytime. Check back often to ensure accuracy.

What factors determine if i’m eligible for a Conventional Loan in Arizona?

Conventional conforming loans follow the terms and conditions set forth by government sponsored enterprises (GSE’s) like Fannie Mae or Freddie Mac. To be eligible for a Conforming Loan in Arizona, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be considered. A FICO credit score of 620 or above is generally required to obtain a conventional loan approval. You must also have enough income to pay your housing costs plus all additional monthly debt.

How much money will I need for the down payment and closing costs?

Conventional home loans require the home buyer to invest between 3% and 20% of the sales price towards the down payment and closing costs. If the sales price is $100,000 for example, the mortgage applicant must invest at least $3,000 – $20,000 to meet conventional mortgage down payment requirements, depending on the program.

Minimum Arizona Conventional Loan Down Payment:

Residence UsageFixed-Rate Mortgage (FRM)Adjustable-Rate Mortgage (ARM)
1 Unit Primary3% Down Payment10% Down Payment
2 Units Primary15% Down Payment25% Down Payment
3 Units Primary25% Down Payment35% Down Payment
4 Units Primary25% Down Payment35% Down Payment
1 Unit Second Home10% Down Payment20% Down Payment
1 Unit Investment15% Down Payment25% Down Payment
2 Units Investment25% Down Payment35% Down Payment
3 Units Investment25% Down Payment35% Down Payment
4 Units Investment25% Down Payment35% Down Payment

What property types are allowed for Conventional Conforming Mortgages?

AZ Conforming Loan LimitsConventional mortgage guidelines allow you to purchase warrantable condos, planned unit developments, modular homes, manufactured homes, and 1-4 family residences. Conventional loans can be used to finance primary residences, second homes and investment property.

Learn more about conventional mortgages.

What types of refinance programs do Conventional Loans offer in Arizona?

There are two main types of conventional refinance loans available in Arizona:

  • Conventional Rate/Term Refinance: Conventional Rate/Term refinancing loans are for borrowers who currently have an FHA, VA, USDA or conventional fixed rate mortgage or ARM loan and wish to refinance into a conventional mortgage with a lower interest rate. If you’re a homeowners considering a stable, conventional fixed-rate mortgage, this program may also eliminate your mortgage insurance.
  • Cash-Out Refinance: An Conventional Cash Out Refinance is perfect for the homeowner who wants to access the equity that they have built up in their home. This program is beneficial to homeowners whose property has increased in value since it was purchased.

What factors determine if I am eligible for a Conventional Refinance Loan?

To meet conventional refinance mortgage requirements in Arizona, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be considered. You must be able to cover closing costs and have enough income to pay your monthly debt.

Conventional Loan Requirements

More Arizona Mortgage Limits

You may also want to visit these additional home loan resources before deciding on a mortgage program:

 

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