Conventional home loans in Arizona: how they work in 2026

Key facts at a glance

2026 conforming limit (1 unit)	$832,750 in Maricopa and Pinal County
Above the limit	Jumbo loan
Property types	Primary homes, second homes, and investment properties
Mortgage insurance	PMI when equity is low; can be removed later
Credit	Fannie Mae removed its 620 minimum for loans run through its automated system (DU)

What is a conventional loan?

A conventional loan is a home loan that isn't insured by FHA, VA, or USDA. Most are "conforming," which means they follow Fannie Mae or Freddie Mac guidelines and fall under the conforming loan limit.

Who is a conventional loan best for?

• Buyers with steady income and solid credit
• Buyers who want mortgage insurance that can come off later
• Second-home and investment property buyers
• Buyers who want fewer property condition rules than FHA or VA

What is the 2026 conventional loan limit in Arizona?

The FHFA set the 2026 conforming limit at $832,750 for a one-unit home, up from $806,500 in 2025. That's the limit in Maricopa County, Pinal County, and the rest of Arizona. Loans above that are jumbo loans.

How does PMI work on a conventional loan?

If you put less down, a conventional loan usually has private mortgage insurance. The cost depends a lot on your credit score. The good news is it doesn't last forever. Under federal law, you can ask to remove PMI once you've built enough equity, and it ends automatically at a set point. That's one reason buyers with good credit often pick conventional over FHA.

What credit score do I need for a conventional loan?

Fannie Mae removed its hard 620 floor for loans run through its automated underwriting system, Desktop Underwriter. That doesn't mean every lender will go lower, and your score still drives your price and PMI cost. Lenders can now also use VantageScore 4.0 on Fannie and Freddie loans. Here's more on the 620 change and VantageScore 4.0.

Are there conventional loans for lower-income or first-time buyers?

Yes. Fannie Mae HomeReady and Freddie Mac Home Possible are built for buyers under certain income limits, with reduced mortgage insurance costs. Arizona down payment programs also pair with Fannie Mae HFA Preferred and Freddie Mac HFA Advantage loans. See Arizona down payment assistance.

Conventional or FHA: which should I choose?

If your credit is strong, conventional often costs less over the life of the loan. If your score is lower or your debts are higher, FHA can come out ahead. I'll put both side by side with your real numbers so you can see the difference. Compare with FHA loans in Arizona.

Subject to eligibility, credit approval, and program guidelines. Programs can change.