Conventional Loans · Peoria, Arizona
Conventional Loans in Arizona — Flexible Financing from 3% Down
The most popular mortgage in America, shopped across multiple wholesale lenders for the sharpest Arizona pricing. ASJ Mortgage Solutions serves Peoria, Phoenix, Glendale, Scottsdale, Tempe, Chandler, Gilbert, Tucson, and Prescott.
- Down payments from 3% for qualifying first-time buyers
- Cancellable PMI — request removal at 80% LTV, automatic at 78%
- 30-, 20-, and 15-year fixed terms plus ARM options
- Second homes, investment properties, and 2–4 unit homes
Free consultation · No obligation · NMLS #1909669 · AZ Broker License #MB-1005394
Get Your Conventional Loan Quote
Answer a few quick questions — we'll follow up with options tailored to you.
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What is a Conventional Loan?
A conventional loan is a mortgage that isn't backed by a government agency (FHA, VA, or USDA) and typically follows Fannie Mae or Freddie Mac guidelines. For Arizona borrowers with solid credit, it usually means competitive rates, down payments from 3%, and mortgage insurance that — unlike FHA — can be cancelled once you build enough equity.
Down payment tiers
How Much Should You Put Down?
Conventional lending isn't one-size-fits-all — the down payment you choose changes your rate, your PMI, and your monthly payment. Here's the tier structure we walk Arizona buyers through:
| Down Payment | Who It Fits & What It Means |
|---|---|
| 3% down | Qualifying first-time buyers through programs like Conventional 97, HomeReady, and Home Possible (income limits may apply to some). The lowest conventional entry point. |
| 5% down | The standard minimum for most primary-residence borrowers. PMI applies but drops off as equity grows. |
| 10% down | Lower PMI cost and better pricing; also the typical minimum for second homes (think a Prescott or Flagstaff getaway). |
| 15–25% down | The usual range for Arizona investment properties, depending on property type and units. |
| 20%+ down | No PMI at all, and the strongest pricing tiers. |
Arizona example: on a $450,000 Valley home, the difference between 5% down ($22,500) and 20% down ($90,000) is $67,500 in upfront cash. Many buyers do better putting 5–10% down, keeping reserves for the move and improvements, and letting appreciation plus principal paydown eliminate PMI. We'll model your scenarios both ways.
The conventional advantage
PMI Rules — Friendlier Than FHA
Private mortgage insurance applies when you put less than 20% down, but conventional PMI plays by friendlier rules than FHA:
Request Cancellation at 80% LTV
Once your balance reaches 80% of the home's original value, you can ask your servicer to remove PMI.
Automatic Termination at 78% LTV
It drops off on its own when your balance amortizes to 78% of original value (loan in good standing).
Appreciation Shortcut
If your Arizona home's value has risen, a new appraisal may support early removal under lender and investor rules. Given how metro Phoenix values have moved, this is a conversation worth having a couple of years after purchase.
Risk-Based Pricing
PMI cost scales with your credit score and down payment, so a 740+ score with 10% down pays far less than the worst-case numbers you see quoted online.
Compare that with FHA, where the annual mortgage insurance premium usually lasts for the life of the loan at maximum financing — a key reason strong-credit borrowers land on conventional. Not sure which side you fall on? See our Arizona FHA loans page or let us run both.
Qualifying
Arizona Conventional Loan Requirements
| Requirement | Guideline |
|---|---|
| Credit | 620 minimum for conforming loans; best pricing generally at 740+ |
| Down payment | From 3% (qualifying first-time buyers) — see tiers above |
| DTI | Commonly up to ~45%, and up to ~50% with strong automated-underwriting approval |
| Income & assets | Documented income and sourced funds; gift funds allowed on primary residences |
| Loan limits | Conforming limits are set by the FHFA and updated annually — above them, we move you into jumbo options, which we also broker for Arizona's higher-priced Scottsdale, Paradise Valley, and North Phoenix markets |
| Property types | Single-family homes, condos, townhomes, 2–4 unit properties, second homes, and investment properties across Arizona |
Loan terms
Fixed or Adjustable? Term Options for Arizona Borrowers
30-Year Fixed
The default for payment stability and maximum buying power.
15- & 20-Year Fixed
Higher payment, dramatically less total interest; popular with Arizona refinancers and move-up buyers.
ARMs
A lower initial rate for buyers who expect to sell or refinance within the fixed period; worth a look for shorter Arizona timelines, with eyes open about adjustment risk.
Program fit
Is Conventional Right for You? Quick Comparison
| Your Situation | Best Starting Point |
|---|---|
| Strong credit, 5%+ down | Conventional usually wins on total cost |
| Score under ~680 or minimal savings | Compare FHA, especially stacked with Arizona down payment assistance |
| Veteran or active duty | A VA loan with $0 down and no monthly MI is almost always the better benefit |
| Buying rentals — qualify on rent, not W-2s | See DSCR investor loans |
| Already own, want cash without touching your rate | An Arizona HELOC may beat a cash-out refinance |
As a broker with multiple wholesale lenders, we don't guess — we price your exact scenario across programs and show you the winner.
Local expertise
Your Peoria, Arizona mortgage broker
Based right here in Peoria (85382), ASJ Mortgage Solutions, LLC knows the West Valley market — from new builds in Vistancia and Lake Pleasant corridor communities to established neighborhoods like Fletcher Heights, Westbrook Village, Terramar, and Dove Valley Ranch. Whether you're relocating for work near the Loop 101, buying your first home close to Peoria Unified schools, or right-sizing in an active-adult community, we structure conventional financing around your goals — not the other way around.
Conventional loans across Arizona — city by city
ASJ Mortgage Solutions, LLC is licensed to serve borrowers statewide. Wherever you're buying or refinancing in Arizona, we bring the same local-broker service and multi-lender pricing.
West Valley & Northwest Phoenix
Phoenix & East Valley
Tucson & Southern Arizona
Northern & Western Arizona
Don't see your city? We serve borrowers throughout the entire State of Arizona — call 480-376-7355 or start your quote.
How it works
From quote to keys in four steps
Our process is a real sequence — here's what happens after you reach out.
Quick Consultation
Complete the short survey above or call 480-376-7355. We'll discuss your goals, budget, and timeline.
Compare Options
We shop multiple wholesale lenders and present conventional loan options side by side, in plain English.
Get Pre-Approved
A solid pre-approval strengthens your offer in Peoria's competitive market and locks in your buying power.
Close With Confidence
We coordinate with your agent, the lender, and title to keep your closing smooth and on schedule.
FAQ
Arizona Conventional Loan FAQs
Straight answers to what Arizona buyers ask us most.
How much do I need to put down on a conventional loan in Arizona?
When can I remove PMI on a conventional loan?
What credit score do I need for a conventional loan in Arizona?
What is the conforming loan limit in Arizona?
Can I use a conventional loan for a second home or rental in Arizona?
Price Your Conventional Loan Across Multiple Lenders
One conversation, several lenders compared, real numbers — usually same day.
☎ 480-376-7355