Ready to buy your Phoenix, AZ dream home? Most prospective homeowners who are shopping for a mortgage are looking for a conventional loan. A conventional loan is one which is not insured by the FHA, VA, or any government agency.
Conventional loans are usually conforming loans. In other words, they are not jumbo loans.
Why Consider a Conventional Loan in Phoenix, AZ?
- Conventional loans have reasonable down payments, ranging anywhere from 3-20%.
- If you have a strong credit score, you can qualify for excellent rates with low closing costs.
- Many of the fees and loan terms may be negotiable.
- If you can provide a down payment of 20%, you may not need to purchase mortgage insurance. If you go with a lower down payment, you still may be able to discontinue the insurance after your equity builds up to 20% of the value of the property.
In short, a conventional mortgage in Phoenix will often save you money over the long run if you are eligible. Customers who qualify for conventional loans are considered “low risk” homebuyers, and are accorded certain benefits as such.
Do You Qualify for a Phoenix Conventional Loan?
Not everybody will qualify for a conventional loan in Phoenix. Here is what Phoenix, Arizona mortgage lenders are looking for when they approve customers for conventional loans:
- A high credit score. If your score is mediocre or low, you probably will not qualify (but you may be able to get a loan through a program like that offered by the FHA—see this link for details).
- Ability to make the down payment. It is traditional to put a 20% down payment on a house with a conventional loan—but we offer conventional loans with down payments as low as 3-5%.
- Reliable income. You need to be able to prove that you have a solid, dependable income each month, and that it is at least around triple the amount of your expected mortgage payments.
- Your debts and monthly bills should equal less than half of your income (the exception would be if you can prove high assets).
You can prove you meet the eligibility requirements for a conventional mortgage in Phoenix by pulling together the relevant documentation to demonstrate your income and expenses. This is a process which B Home can walk you through step by step.
Ask an Phoenix AZ Mortgage Broker Professional!
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