Capital Home Mortgage Arizona

Arizona Conventional Home Loans

Conventional Mortgage Lender Arizona

Conventional Home Loans In Arizona

What are Conventional Home Loans?

A conventional mortgage loan is one that is not insured or guaranteed by the government. Private lenders, such as banks, credit unions, and mortgage companies, make these loans instead.

Unlike FHA and VA loans, which are government loans, conventional home loans frequently require higher interest rates and higher credit scores to qualify. They also have tighter credit standards.

Conventional loans are typically the preferable option for borrowers with excellent credit and a minimum 3% down payment, although a 20% down payment is generally required to avoid mortgage insurance. The private lender determines the loan parameters for a conventional mortgage, including the interest rate, down payment requirements, and eligibility requirements. These loans typically conform to the Federal Housing Finance Agency (FHFA) loan limits and satisfy the down payment and income requirements set by Fannie Mae and Freddie Mac.

Types of Conventional Loans

Conventional mortgages can either be conforming or non-conforming.

  • Conforming Loans

Conforming loans are mortgages that meet the underwriting standards established by Fannie Mae and Freddie Mac, two U.S. government-sponsored enterprises. These loans comply with specific loan limits, adjusted annually to reflect national average home price variations. In 2023, the conforming loan limit is $726,200 for most of the United States, though it may be higher in more expensive regions.

Fannie Mae and Freddie Mac purchase conforming loans on the secondary mortgage market, thereby increasing liquidity, affordability, and stability in the mortgage market. Afterward, the acquired loans are converted into investment products or packaged as securities.

Conforming loans are attractive to borrowers with excellent credit because they typically offer lower interest rates than other mortgage types. They are regarded as standard in the mortgage industry and are preferred by lending institutions.

In addition to the borrower’s loan-to-value ratio (size of the down payment), debt-to-income ratio, credit score and history, and documentation requirements, the criteria for a conforming loan include the borrower’s loan-to-value ratio.

  • Non-Conforming Loans

Non-conforming home loans are mortgages that do not satisfy the criteria established by government-sponsored enterprises (GSE) like Fannie Mae and Freddie Mac, which purchase most U.S. mortgages. This may occur for various reasons. It could be due to the loan amount exceeding the conforming loan limit, the borrower’s lack of acceptable credit, the unconventional nature of the funds’ use, or the collateral supporting it.

Non-conforming loans are frequently used when traditional loans do not satisfy the borrower’s needs, even though they are riskier and typically more expensive than conforming loans. Hard money lenders or private institutions can finance these loans, and a significant portion of real-estate loans are classified as non-conforming because either the borrower’s financial standing or the property type needs to comply with bank guidelines.

A substantial portion of non-conforming loans is either high-value mortgage loans or loans made to borrowers who typically would not qualify for a conventional-conforming loan. They are not packaged and resold, unlike traditional mortgage loans.

Qualification Requirements for a Conventional Loan

Generally speaking, conventional loans can be more challenging to qualify for than government-backed loans due to these requirements. However, they remain the most prevalent form of mortgage in the United States and are suitable for various buyers and property types.

To qualify for a conventional loan, specific requirements must be met. Among them are the following:

  • Credit Score

A minimum credit score of 620 is required for a conventional loan. However, some lenders require a credit score of 640 or higher as a qualification condition.

  • Down Payment

Conventional loans generally require a minimal down payment. Typically, 5% of the purchase price is required as a down payment. In certain instances, however, borrowers with outstanding credit may be required to put down as little as 3 percent. A larger down payment of 20% is typically recommended to avoid the need for mortgage insurance.

  • Debt-to-Income (DTI) Ratio

The debt-to-income (DTI) ratio must not exceed 43 percent. This indicates the ratio between your monthly debt payments and your gross monthly income.

  • Income and Employment

Lenders frequently look for a two-year track record of consistent income and employment. You must offer financial papers such as pay stubs and tax forms to validate your financial details.

  • Loan Limits

Conventional conforming loans must adhere to the Federal Housing Finance Agency’s loan limits. The conforming loan limit for a single-family home in Arizona in 2023 is $726,200. This value was established by the Federal Housing Finance Agency (FHFA) and applied to all conventional loans sold to Fannie Mae.

Conforming loan limits for properties with three or more units are $929,850 for a two-unit property, $1,123,900 for a three-unit property, and $1,396,800 for a four-unit property.

 

These values apply to all Arizona counties, including Apache, Cochise, Coconino, Gila, Graham, Greenlee, La Paz, Maricopa, and Mohave.

Apply for a Conventional Loan in Arizona

Capital Home Mortgage has the expertise to navigate the complex mortgage market and assist homebuyers in securing a mortgage loan. Given the recent aggressive increase in mortgage interest rates, our expert advice can save thousands of dollars throughout their loan duration. Arizona homebuyers can benefit from our market expertise, competitive loan terms, and assistance navigating the state’s first-time homebuyer programs.

Call (480) 360-6650 to speak with our Arizona Home Loan Experts and get started on your path to homeownership!

Why Arizona HomeBuyers are Choosing Capital Home Mortgage
Close On Time

Complete Control from Application to Funding

Low Rates & Low Fees

Direct Lender with Competitive Rates & Low Fees

Exceptional Service

7  Day a Week Support Application to Final Mortgage Payment

Arizona Mortgage Rates

Have you ever wondered why interests rates are what they are and what determines the final rate?  Why borrowers receive different interest rates? Or why rates go up and down?  Interest Rates are calculated using several factors.

  • Demand for mortgage Securities
  • Property securing the mortgage
  • occupancy of the property
  • Loan to value of the property
  • Borrower’s credit worthiness

Arizona Conventional Purchase Loans

Conventional Purchase Mortgage Lender
  • Freddie Mac or Fannie Mae Insured
  • Primary, 2nd or Investment Homes
  • Single and Multi Family
  • Condo’s and Manufactured Homes
  • MORTGAGE INSURANCE OPTIONS
  • LOWER RATES & FLExIXBLE TERMS
  • MAXIMUM LOAN AMOUNT – $766,550
  • HIGH BALANCE (VARIES BY COUNTY)

Arizona Conventional Refinance Loans

Conventional Refinance Mortgage Lender
  • Freddie Mac or Fannie Mae Insured
  • Primary, 2nd or Investment Homes
  • Single and Multi Family
  • Condo’s and Manufactured Homes
  • Mortgage Insurance Options
  • Lower Rates & Flexible Terms
  • Maximum Loan Amount – $766,550
  • High Balance (Varies By County)

Arizona Conventional Renovation Loans

Conventional Renovation Mortgage Loans
  • 95% LTV Primary  Residence
  • 97% LTV 1st Time Buyer Single Family
  • 85% LTV on 1 Unit Investment
  • 90% LTV on Second Home
  • Minimum Credit Score 620
  • Luxury Renovations are Eligible
  • Maximum Loan Amount – $766,550
  • High Balance (Varies By County)
Arizona Mortgage Programs

Arizona Home Purchase

Thinking of Buying an Arizona Home?

Looking to Purchase a Home? We have the loan program for you… Call today to speak with a loan officer to discuss your personal mortgage options.

  • Primary, Secondary, Investment
  • FHA, VA, USDA, Native American
  • Conventional, Jumbo, Non QM
  • Reverse, Renovation, Manufactured

Arizona renovation home loans

Looking to Rehab an Arizona Home?

Want the Charm of an Older Neighborhood? But want a new place or a fresh look? Why not look at a renovation loan?  Purchase the Perfect Home and make it your own. Call today.

  • Remodel, Renovate or Repairs
  • FHA 203K Streamline or full
  • fannie mae homestyle reno
  • freddie mac home choice reno

Arizona FHA Home Loans

Great for 1st Time Arizona Homebuyers

FHA Home Loans are great for first time home buyers, buyers with less than perfect credit, or buyers needing less out of pocket.   Call today to get started.

  • Smaller Down Payment
  • Flexible Underwriting
  • Higher Debt to Income Ratios
  • Lower Credit Scores OK

Arizona VA Home Loans

100% Financing for Arizona Veterans

Proudly Serving Active Duty servicemen and women, as well as, retired and disabled veterans. Call today to speak with a VA loan officer.

  • Simply Qualifying for Veterans
  • No Down Payments Requirements
  • Lower Credit Scores Accepted
  • Manual Underwriting Allowed

Arizona Conventional Home Loans

Flexibility for Arizona Homebuyers

Conventional Home Loans are the best option for flexibility of property types and for mortgage loan terms. Call today to get speak to a Loan Officer.

  • Primary, 2nd Home, Investment
  • Great Rates & Low Fees 
  • Single Family and Multi-Family
  • Renovation Loan Programs

Arizona Jumbo Home Loans

Arizona Non Conforming Loans

Jumbo Home Loans also called Non Conforming Home Loans are great options for buyers needing financing outside of agency limits.  Call today to speak to a loan officer.

  • Primary Residence and 2nd Homes
  • Higher Loan Amounts – 3 Million
  • Great Interest Rates
  • Investor Specific Guidelines

Arizona USDA Home Loans

100% Arizona Rural Home Loans

USDA Loans are a great option for families wanting to live outside of the city.  Call today to speak with a loan officer to discuss your personal loan options.

  • Rural Properties Only
  • Primary Residence Only
  • Geographic Restrictions
  • Income REstrictions

Arizona Native American Home Loans

Arizona HUD 184 Home Loans

HUD 184 Home Loans are solely for Native American and offer a variety of benefits.  Call today to speak with a loan officer to find out more.

  • Primary Residence Only
  • Manual Underwriting for All Loans
  • No Credit Score Requirements
  • Tribal Grants Allowed

Arizona Manufactured Home Loans

Great Alternative Arizona Housing

Arizona reverse mortgages

Your Arizona Home at Work

Reverse Mortgage Loans offer seniors options to use their home’s equity for cash or to eliminate payments. Call today to get speak to a Reverse Loan Officer.

  • primary residence only
  • simple qualifying – equity based
  • credit scores not applicable
  • Minimum age 62

Arizona Non QM Home Loans

Making Arizona Mortgages Possible

Looking for Non Traditional Home Mortgage Loan?  Contact a Loan Officer Today to discuss the alternative mortgage options currently available.

  • Purchase, Rate and Term & Cash-out
  • Primary, Secondary and Investment
  • Full Doc & Bank Statements Programs
  • Corporations OK

Arizona One Time Close mortgages

Build Your Arizona Dream Home

Want to Build? But unsure of what the future looks like? Remove the risk with a One Time Close Construction Loan.  Call today to see how a OTC loan works.

  • Primary Residence Only
  • Close Once
  • Lock Rate at Contract
  • Traditional Final Mortgage

Arizona Refinance Mortgage Loans

Arizona Rate & Term Refinance

Refinancing can be a hard decision and the payback can sometimes be confusing.  Call today and let our Loan Officers walk you through the process.

  • Reduce Mortgage Term
  • Lower Monthly Payments
  • Appraisal Waivers
  • Streamline Options Available

Arizona Cash-out Home mortgages

Arizona Equity Mortgage Loans

Cash-Out Mortgage Loans make use of the equity in your home by allowing you to refinance the current mortgage and access this equity to use as you see fit.

  • Debt Consolidation
  • Investment Opportunities
  • Home Improvement
  • Vacation or Education

Arizona Mortgage Team

Dale Gremillion

Manager / Sr Loan Officer
NMLS 210325

Conor Hayhurst

Manager / Sr Loan Officer
NMLS 743506

Brad Rund

Native American Lending
Manufactured Housing

Arizona Mortgage Company Reviews

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