Conventional Home Loans in Arizona
A conventional loan is the workhorse of the Arizona market: from 3 percent down for eligible buyers, mortgage insurance you can ask to cancel at 80 percent of the original value, and the only common route for a Sedona second home or a Tempe rental. Arizona adds no tax on the loan, and closings run through an escrow company. We are licensed statewide, in all 15 counties.
Arizona Mortgage Banker License 1029604 and Mortgage Broker License 1021032. NMLS #1925352.
Conventional in Arizona, 2026
Conforming limit
$832,750 in every Arizona county
Down payment
From 3% for eligible buyers; 10% second home; 15% rental
Mortgage insurance
Cancellable at 80% of original value, none from 20% down
State tax on the loan
None; flat county recording fee
Closing
Escrow company; funds release when the deed records
3%
Minimum down payment on a first home
$832,750
2026 conforming limit, every Arizona county
15
Arizona counties, licensed statewide
4.9
Average of 5,300+ Google reviews
Why conventional fits most Arizona files.
A conventional loan is a mortgage without government insurance behind it, which is exactly why it is flexible: it finances the Gilbert first home from as little as 3 percent down, the Flagstaff cabin at 10 percent, and the rental near ASU at 15 percent, all under one set of rules. Its mortgage insurance works differently from FHA’s, and in Arizona’s price range that difference is real money: you can ask for cancellation at 80 percent of the original value, it ends automatically at 78 percent while the loan is current, and from 20 percent down there is none at all.
Arizona keeps the state’s share of the cost low. There is no transfer tax and no tax on recording the deed of trust, just a flat county recording fee, so a conventional loan here closes for the lender’s, title and escrow fees. Closings are handled by escrow companies rather than attorneys, Arizona funds dry, and recording usually happens the morning of closing, so purchase keys change hands the same day the deed records.
This page covers conventional loans in Arizona. For the state as a whole, see our Arizona page; for the program itself, the conventional hub goes deeper. If you are comparing against FHA, FHA in Arizona is the other side of that choice, and buying in Arizona and refinancing in Arizona cover the two transactions end to end.
Conventional guidelines, and what Arizona adds.
The first two columns are the Fannie Mae and Freddie Mac rules every lender starts from; the last is what changes in Arizona. Your pro confirms which apply to your file.
| Requirement | Guideline | In Arizona |
|---|---|---|
| Down payment | As little as 3% on some programs for eligible buyers, commonly 5%; 10% second home; 15% rental | Second-home files for Sedona, Flagstaff and Prescott are routine; lenders read short-term-rental income with care |
| Credit score | Usually 620; best pricing from about 740 | Same statewide; the score drives the rate more than anything else on the file |
| Mortgage insurance | Required under 20% down; cancellable at 80% of original value, automatic at 78% while the loan is current | No state wrinkle; on a $450,000 Phoenix loan the premium is commonly $100 to $250 a month until it ends |
| Loan limit | $832,750 for one unit in 2026 | Every Arizona county; above it, the file is jumbo |
| Seller contributions | 3% of the price with under 10% down, 6% with 10% to 25%, 9% above that | Credits are a common ask in the metro Phoenix resale market |
| Debt-to-income ratio | Up to about 45 to 50% with strong compensating factors | HOA dues count in the ratio, and most metro Phoenix and Tucson homes sit in an HOA |
Guidelines are Fannie Mae and Freddie Mac’s; individual lenders can be stricter. The limit is the FHFA baseline for 2026 and resets each year.
Three ways Arizona borrowers use conventional.
One program, three very different files. All three close through an Arizona escrow company.
From 3% down
Buying a home
Some programs allow eligible buyers, often first-timers, to put 3 percent down; most buyers start at 5 percent, with pricing adjustments disclosed up front. From 20 percent down there is no mortgage insurance line at all, which is the cleanest payment the market offers.
Drop FHA MI
Refinancing out of FHA
FHA’s annual premium runs for the life of the loan below 10 percent down. Once Phoenix-area price growth puts you past 20 percent equity, a conventional refinance removes it for good; we run the break-even with Arizona’s low closing costs before you commit.
Second homes and rentals
Sedona to Tucson
Government programs are for primary residences; conventional is how a second home in the pines or a rental near the universities gets financed, from 10 and 15 percent down respectively.
Cancellable mortgage insurance is the Arizona difference-maker.
Metro Phoenix prices mean most buyers put down less than 20 percent, so the insurance question decides the payment for years. Conventional mortgage insurance prices by credit score, so a 740-score buyer often pays meaningfully less per month than FHA would charge on the same house, and the charge is not permanent: you can request cancellation at 80 percent of the original value, and it terminates automatically at 78 percent while the loan is current.
Arizona’s appreciation has been doing part of that work on its own. A buyer who put 5 percent down a few years ago may already be past the threshold, and some servicers and investors allow cancellation based on current value under additional conditions. We check with your servicer before quoting anyone a refinance they may not need.
Phoenix to Flagstaff
Conventional purchases and refinances closed through an Arizona escrow company near you, in all 15 counties.
Six Arizona details on a conventional file.
The state-level facts that shape cost and timing. All of them appear on your Loan Estimate from the start.
01
No state tax on the loan
Arizona charges no transfer tax and no tax on recording a deed of trust, only a flat county recording fee, so closing costs here are the lender, title and escrow fees.
02
Escrow closings, dry funding
An escrow company runs the closing; no attorney is required. The lender releases funds after the deed records, normally the same morning, and keys follow once recording is confirmed.
03
HOA dues in the ratio
Most metro Phoenix and Tucson homes sit in a homeowners association. The dues count in your debt-to-income ratio and the HOA’s condo questionnaire matters on attached homes.
04
Appraisal waivers happen
On strong files with plenty of equity, the agencies sometimes waive the appraisal. We tell you if your file qualifies; it saves money and days.
05
Second-home underwriting
Sedona, Flagstaff and Prescott files are routine, but lenders distinguish a true second home from a short-term rental; how you intend to use the home changes the pricing and the paperwork.
06
Property taxes at closing
Arizona bills in arrears, so the seller credits you their share at closing and the new escrow account picks up the next installment. Refinancing does not change your assessment.
What would a conventional payment look like?
Set the price and your down payment. Under 20 percent down, add the mortgage insurance estimate to see the real monthly figure; from 20 percent, that line stays at zero.
The U.S. conventional market right now.
National average rates from the Federal Reserve Bank of St. Louis FRED database: the Freddie Mac survey for conventional and the Optimal Blue indices for FHA and VA, shown as third-party market benchmarks, not MortgagePros pricing. Your rate and APR depend on your credit, down payment, property type and the day you lock.
Conventional 30-year fixed, U.S. average
7.40%
FHA 30-year fixed, U.S. average
7.18%
VA 30-year fixed, U.S. average
7.09%
Sources: Freddie Mac Primary Mortgage Market Survey (conventional, 30-year national average, week of Oct 8, 2026) and Optimal Blue Mortgage Market Indices (FHA and VA, 30-year national averages as of Oct 8, 2026), distributed through FRED, Federal Reserve Bank of St. Louis; the figures and dates refresh automatically from the source. These are third-party market benchmarks, not MortgagePros rates and not an offer of credit. Your rate and APR depend on your credit, loan type, property and lock date.
How a conventional loan works with us in Arizona.
Four steps, one licensed pro, an Arizona escrow closing.
1
The numbers first
Price range or current loan, down payment or equity, and the whole payment including taxes, insurance, HOA dues and any mortgage insurance, in one estimate.
2
The right structure
Down payment against pricing tiers, mortgage insurance options priced side by side, and the FHA comparison where it is close.
3
Underwriting and appraisal
Documents in early, the appraisal ordered where one is needed, and conditions cleared as they come in.
4
Close at escrow
Sign at the escrow office or with a mobile notary; Arizona funds dry, records in the morning, and the file is done the day the deed records.
Ready to price a conventional loan in Arizona?
An Arizona-licensed pro shows you the payment, the mortgage insurance options and the closing costs on one page. Free, and it starts without a hard credit pull.
Conventional loans in Arizona, answered.
The questions Arizona borrowers ask us most. If yours is not here, a licensed pro will answer it directly, with no obligation.
What credit score do I need for a conventional loan in Arizona?
Most lenders start at 620, and pricing improves in tiers from there; the best pricing usually appears from about 740. Below 680 it is worth pricing FHA beside conventional, because FHA’s insurance does not rise with the score the way conventional’s does. We quote both where it is close.
How much is mortgage insurance on a conventional loan?
It depends on your score and down payment; on a $450,000 Phoenix-area loan it commonly runs $100 to $250 a month. You can request cancellation at 80 percent of the original value, it ends automatically at 78 percent while the loan is current, and from 20 percent down there is none at all.
What does a conventional loan cost to close in Arizona?
The lender’s fees, title insurance, the escrow fee, an appraisal where one is required, prepaid interest and the escrow deposits. Arizona adds no transfer or mortgage tax, just a flat county recording fee, which keeps it near the low end nationally. Every figure is itemized on the Loan Estimate.
Can I use a conventional loan for a second home or rental?
Yes, and in Arizona that is one of its main jobs: government programs are for primary residences. Second homes start at 10 percent down and rentals at 15 percent, with pricing adjustments for each. Lenders look closely at how a Sedona or Flagstaff property will actually be used.
When is a loan jumbo in Arizona?
Above $832,750 for a one-unit home in 2026, in every Arizona county. Paradise Valley, north Scottsdale and the Catalina Foothills regularly price above that line; jumbo in Arizona covers how those files work.
Do I have to come to Michigan?
No. Your licensed pro handles the loan by phone, email and e-signature, and the closing happens at an Arizona escrow office near you or with a mobile notary.
Talk to a Arizona-licensed pro about a conventional loan.
Tell us what you are looking to do and where in Arizona. A licensed pro will call back, usually the same business day. Asking does not start a loan or require a hard credit pull.
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Arizona Mortgage Banker License 1029604 and Mortgage Broker License 1021032. NMLS #1925352. Rated 4.9 across 5,300+ Google reviews.