Conventional Home Loans in Arizona: 2026 Requirements and Loan Limits
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Quick answer
A conventional loan in Arizona needs a 620 credit score or more. First-time buyers can put down 3%. Debts can be up to 50% of income, but it can vary. Under 20% down, you pay private mortgage insurance (PMI). The 2026 limit is $832,750 for one home in every county.
As Little as 3% Down for First-Time Buyers
Compare Options From Several Lenders
Flexible Options for Various Property Types
A conventional loan is a home loan that is not backed by a government agency. Fannie Mae and Freddie Mac are two companies that buy home loans from lenders. They set most of the basic rules.
You can use a conventional loan for a home you live in, a second home or an investment property. We're a licensed mortgage broker. We help you compare conventional options from several lenders.
Down payment
As little as 3% down
Qualified first-time buyers can put down as little as 3%.
Credit and debts
620 credit score
You need a credit score of 620 or more. Your debts can be up to 50%, but it can vary based on your credit and overall strength as a borrower.
Property
Many kinds of homes
Use one for a home you live in, a second home or an investment property. Condos and manufactured homes can qualify.
2026 limit
$832,750 for one home
Every Arizona county has the same 2026 limit: $832,750 for one home.
Conventional loan requirements in Arizona (2026)
You need a credit score of 620 or more. First-time buyers can put down as little as 3%. Your debts can be up to 50%, but it can vary based on your credit and overall strength as a borrower.
| Requirement | What a conventional loan needs |
|---|---|
| Credit score | 620 or more |
| Down payment | As little as 3% for first-time buyers. 20% or more means no PMI |
| Debt-to-income (DTI) | Debts up to 50%, but it can vary based on your credit and overall strength as a borrower |
| Mortgage insurance | PMI if you put down less than 20% |
| Income and work history | Steady income. Self-employed buyers often need 1 year of tax returns |
| Home use | Main home, second home or investment property |
| Property | 1 to 4 units, condos and manufactured homes |
| Loan limit (1 unit, 2026) | $832,750 in all 15 counties. See the full table → |
Sources: Fannie Mae Selling Guide: debt-to-income ratios; Fannie Mae: 97% loan-to-value options; FHFA 2026 loan limits. Credit score and debt-to-income figures are Mortgage Brothers guidelines. Updated Oct 2026.
PMI is private mortgage insurance. DTI is your debt-to-income ratio: your monthly debt payments divided by your gross monthly income, which is your income before taxes.
Comparing loan types? See conventional vs FHA loans in Arizona. New to this? Read what is a conventional home loan.
Meeting these requirements does not guarantee approval, but it puts you in a strong position. We can help you see where you stand.
2026 conforming loan limits by Arizona county
Every Arizona county has the same 2026 limit: $832,750 for one home.
The conforming loan limit is the most you can borrow with a conventional loan that Fannie Mae and Freddie Mac can buy. Arizona has no high-cost county, so all 15 counties have the same limit.
| Units | 2026 limit (all 15 counties) |
|---|---|
| 1 unit | $832,750 |
| 2 units | $1,066,250 |
| 3 units | $1,288,800 |
| 4 units | $1,601,750 |
Sources: FHFA news release, Nov 25, 2025; Fannie Mae loan limits. For loans delivered in 2026. Updated Oct 2026.
This limit applies in Apache, Cochise, Coconino, Gila, Graham, Greenlee, La Paz, Maricopa, Mohave, Navajo, Pima, Pinal, Santa Cruz, Yavapai and Yuma counties.
Above this, it is a jumbo loan. See jumbo loans in Arizona.
FHFA usually posts next year's limits in late November. We update this table when it does.
How much do I need down for a conventional loan in Arizona?
As little as 3% down for qualified first-time buyers.
A down payment is the part of the price you pay up front. The loan covers the rest. Here is an example:
- $450,000 home: 3% down is $13,500.
- $450,000 home: 20% down is $90,000.
If you put 20% or more down, you do not need private mortgage insurance (PMI).
Other 3% down options
Fannie Mae's HomeReady and Freddie Mac's Home Possible also allow as little as 3% down. They are for buyers with low to moderate income. Your income must be at or below 80% of the area median income, which is the middle income for your area. HomeReady does not require you to be a first-time buyer.
Sources: Fannie Mae: HomeReady; Freddie Mac: Home Possible; Fannie Mae: 97% loan-to-value options. Updated Oct 2026.
Every Arizona county has the same 2026 limit: $832,750 for one home. Above that, you'd look at a jumbo loan. Compare down payments by loan type with our down payment calculator.
Credit score for a conventional loan
The minimum credit score for a conventional loan is 620.
Your credit score is a number that shows how you have paid your bills. Lenders use it to judge risk. Read how poor credit affects a mortgage if your score is below the minimum.
A minimum credit score of 620 is required. However, higher scores often lead to better interest rates and lower mortgage insurance premiums.
Learn more about how your credit affects your mortgage.
Debt-to-income ratio (DTI)
Your DTI can be up to 50%, but it can vary based on your credit and overall strength as a borrower.
DTI is your monthly debt payments divided by your gross monthly income, which is your income before taxes. Debts include your new home payment, car loans, student loans and credit card minimums.
Example: debts of $2,000 a month and income of $6,000 a month before taxes give a DTI of 33%.
Lower ratios may improve your chances of approval.
Try our debt-to-income calculator.
Sources: CFPB: What is a debt-to-income ratio?; Fannie Mae Selling Guide: debt-to-income ratios. Updated Oct 2026.
Private mortgage insurance (PMI)
PMI is insurance that protects the lender if you stop paying. You pay it when you put down less than 20%.
You can ask your servicer, the company that handles your loan payments, to end PMI when your balance reaches 80% of the home's original value. PMI usually ends on its own at 78% if you are current on your payments.
Read CFPB: When can I remove PMI? and how PMI is calculated.
Conventional closing costs in Arizona
Closing costs are the fees to finish your loan. On a median-priced Arizona home, they often run about $3,600 to $4,500. This is an estimate.
The table below shows our closing cost calculator's example for a $450,000 home. The calculator's default uses 5% down. Your down payment, prepaid taxes and homeowners insurance are separate.
| Fee | Estimate |
|---|---|
| Title escrow fee | $690 |
| Lender's title insurance | $1,145 |
| Loan origination | $1,000 |
| Appraisal (Arizona) | $650 |
| Credit report | $100 to $130 |
| Recording fee | $75 |
| Miscellaneous fees | $150 |
| Estimated total of these items | $3,810 to $3,840 |
Source: Mortgage Brothers Home Purchase Closing Cost Calculator. Estimates only.
Try our home purchase closing cost calculator. Read more about Arizona mortgage closing costs and seller concessions.
Primary homes, second homes and investment properties
You can use a conventional loan for a home you live in, a second home or an investment property. Second homes and investment properties need a bigger down payment.
A second home is a home you use part of the year, such as a vacation home. An investment property is a home you rent out. The loan-to-value (LTV) ratio is the loan amount divided by the home's value. A 90% LTV means you put down 10%.
| Home use | Smallest down payment | What the rules say |
|---|---|---|
| Main home | As little as 3% for first-time buyers | The home you live in |
| Second home | At least 10% down | Fannie Mae and Freddie Mac both allow a loan up to 90% of the home's value |
| Investment property | At least 15% down | Fannie Mae and Freddie Mac both allow a loan up to 85% of the home's value |
Sources: Fannie Mae Eligibility Matrix (Aug 5, 2026); Freddie Mac Guide section 4203.1. These are the smallest down payments for buying a 1-unit home. Refinancing and 2 to 4 units have other limits. Your lender can ask for more. Updated Oct 2026.
Credit score: Fannie Mae and Freddie Mac do not list one fixed minimum score for these loans when their automated approval systems approve them. Your lender sets its own minimum, and a higher score helps.
Learn more: owner-occupied vs second home vs investment property, Arizona condo vs townhome and jumbo loans in Arizona.
How to get a conventional loan in Arizona
Start with a preapproval. We guide you through six simple steps, from your first call to closing day.
- Apply online or call to set up a consultation. We talk about your goals and whether a conventional loan fits.
- Get preapproved. A preapproval is a letter that shows how much you may be able to borrow.
- Find a home with your real estate agent.
- Complete your full application and send us your papers.
- Underwriting and approval. Underwriting is when the lender checks your file and makes a decision.
- Close on your loan. You sign the papers and get your keys.
Choosing a conventional lender or broker in Arizona
Fannie Mae and Freddie Mac set the basic rules for conventional loans. Each lender adds its own. We're a licensed mortgage broker, so we compare conventional options from several lenders for you.
Questions to ask any conventional lender or broker
- What credit score and debt-to-income ratio do you need?
- Do you add your own rules on top of the basic ones?
- What fees will I pay, in dollars?
- Who will be my contact, and how often will I hear from you?
Why work with Mortgage Brothers
We know conventional guidelines and the latest Arizona loan limits. We explain each term in plain words, from PMI to closing costs, and we keep you updated until closing day.
At Mortgage Brothers LLC, we're a licensed mortgage broker, and we're your partners in achieving homeownership. Let our experience and dedication work for you in finding the best conventional loan for your needs.
602-535-2171Frequently asked questions about conventional loans in Arizona
What is a conventional loan?
A conventional loan is a home loan that is not backed by a government agency. Most follow rules set by Fannie Mae and Freddie Mac, which buy loans from lenders. You can use one for a home you live in, a second home or an investment property.
What is the conventional loan limit in Maricopa County in 2026?
For 2026, the conventional loan limit is $832,750 for a one-unit home, $1,066,250 for 2 units, $1,288,800 for 3 units and $1,601,750 for 4 units. Every Arizona county has the same limits, including Maricopa. A loan above the limit is a jumbo loan.
What are the requirements for a conventional loan in Arizona?
You need a credit score of 620 or more. First-time buyers can put down as little as 3%. Your debts can be up to 50%, but it can vary based on your credit and overall strength as a borrower. With less than 20% down, you also pay private mortgage insurance (PMI).
What's the minimum down payment for a conventional loan?
You can put down as little as 3% if you are a first-time buyer. On a $450,000 home, 3% down is $13,500. With less than 20% down, you pay private mortgage insurance (PMI) until you build enough equity.
What credit score do I need for a conventional loan?
The minimum credit score for a conventional loan is 620. Higher scores often lead to better interest rates and lower mortgage insurance premiums. We can review your credit and tell you where you stand.
What is the maximum debt-to-income ratio for a conventional loan?
Your monthly debts can be up to 50%, but it can vary based on your credit and overall strength as a borrower. Debts include your new home payment, car loans, student loans and credit card minimums. Your income is counted before taxes. Lower debts make approval easier.
When does PMI end on a conventional loan?
PMI is insurance that protects the lender if you stop paying. You can ask to end it when your balance reaches 80% of the home's original value. By law, it usually ends on its own at 78% if you are current on payments.
Can I use a conventional loan for an investment property?
Yes, conventional loans can be used for investment properties, second homes, and primary residences. This flexibility is one of the key advantages of conventional loans compared to some government-backed loan programs.
What is the recast option in conventional loans?
The recast option is available on many conventional loans. It allows you to recalculate your mortgage payment after making a large principal payment. This can potentially lower your monthly payments without the need to refinance.
Is a loan over $832,750 a jumbo loan?
Yes. For 2026, a loan above $832,750 on a one-unit home is a jumbo loan in Arizona. Jumbo loans follow different rules than conventional loans that fit under the limit. Ask us how the rules differ.
How do I find a conventional lender in Arizona?
Fannie Mae and Freddie Mac set the basic rules for conventional loans, and each lender can add its own. As a licensed mortgage broker, we compare conventional options from several lenders for you. Call 602-535-2171.
How much are closing costs on a conventional loan in Arizona?
On a median-priced Arizona home, closing costs often run about $3,600 to $4,500 (an estimate). That covers title, escrow, appraisal, origination and recording fees. The appraisal is $650. Your down payment and prepaid items are separate.
Eddie Knoell
NMLS ID #210917, Arizona Loan Originator License #LO-0911422
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