Conventional Loans are mortgage loans that are not insured by the government (like FHA, VA, USDA Loans), but they typically meet the lending guidelines that have been set by Fannie Mae or Freddie Mac. Typically, conventional loans have better rates, terms and/or lower fees than other types of loans. However, conventional loans typically require a borrower to have good-to-excellent credit, reasonable amounts of monthly debt obligations, a down payment of 5-20% and reliable monthly income. Conventional loans are ideal for borrowers with excellent credit and at least a 5% down payment.

Most Common Types of Conventional Loans
Fixed Rate Mortgages: Your rate and payment never change.
30 Year Fixed Loan
Benefits: Lowest fixed monthly payments
20 Year Fixed Loan
Benefits: Low fixed monthly payments
15 Year Fixed Loan
Benefits: Lower rate than the 30 or 20 Year Fixed Loans; Pay less interest and pay your home off more quickly.

Adjustable rate mortgages are loans where the interest rate is recalculated on a yearly basis depending on market values. As interest rates are adjusted so is the borrower’s monthly payment. While interest rates on ARM loans are generally lower than fixed rate loans they can eventually become higher. 
Adjustable Rate Mortgages: After the initial period, your interest rate can change once a year.
3/1 ARM
Fixed Rate for 3 Years, Adjustable Rate for the remaining 27 years
5/1 ARM
Fixed Rate for 5 Years, Adjustable Rate for the remaining 25 years
7/1 ARM
Fixed Rate for 7 Years, Adjustable Rate for the remaining 23 years

FHA insured mortgages are some of the best kinds of mortgages available. This is because they can help more people into the home buying market. Check out the list below to understand some of the most basic benefits of an FHA mortgage.

Easier to Qualify for – because they’re backed by the federal government lenders are more likely to give you the kind of loan that you need.

Low Down Payment – FHA insured mortgages only require a 3.5% down-payment which makes it easier for people to own homes. Additionally the 3.5% can come in the form of gifts, unlike many other loan programs.

Lower Credit Borrowers Qualify – because FHA insured loans are backed by the government those with a poor credit history have an easier time getting this kind of loan.

Better Interest Rates – with the backing of the government these loans typically have a better interest rate than most traditional mortgage loans.

Better Home Stability – the FHA has programs designed to help homeowners keep their homes during hard times. The will work with you to help your home from falling into foreclosure. Always try to work out problems with your lender before the situation becomes dire.
FHA Loan Checklist

When you're applying for an FHA loan the following list of documents will help expedite the process. We can help you understand any part of the FHA loan process so don't hesitate to contact us with any questions.

Employment Info
Past two years completed tax returns.
Past two years W-2's, 1099's and any other necessary tax forms.
One month worth of newest pay stubs.
Self-employed will need three years tax returns and YTD Profit & Loss Statement.

Savings Info
Past three months full bank statements for all accounts.
Any recent statements from investment accounts (retirement, 410k, mutual funds, etc.).

Personal Info
Driver's License or other official State identification.
Social Security Card.
Any Divorce, Palimony, Alimony Documents.
Green card or work-permit (if applicable).

FHA Loan Common Questions
Check out our list of common questions related to FHA mortgages. Check out our list of common questions related to FHA mortgages.

What is the FHA?
FHA stands for the Federal Housing Administration. It was created in 1934 to help Americans get into homes.

What makes a FHA insured mortgage beneficial?
A FHA insured mortgage is easy to qualify for, can be obtained with less than perfect credit, costs less and requires a smaller down-payment.

Where can I find FHA forms and other literature?
A great source for FHA forms and information is https://www.hud.gov/topics/buying_a_home.

What is the FHA loan limit in my area?
The loan limit in Maricopa county Arizona is $546,250 for a single family home.

Can I pay an FHA loan off early?
Yes, however be sure to check the pre-payment section of your contract before signing.

Can a FHA insured loan help me lower energy costs?
Yes, through the Energy Efficient Mortgages Program you can finance 100 percent of the cost of making your home more energy efficient. Contact us to see how.

Is there a FHA program to help me refinance my loan?
Yes, the recently created FHASecure is one of the ways that we can help you refinance your current home loan. Contact us now to see what we can do for you.

Can I refinance a fixed rate FHA loan?
Yes. Talk with one of our professionals today to see if refinancing makes sense for you.

What is the recommended debt-to-income ratio for FHA loans?
The recommended debt-to-income ratio for a FHA loan is 30%.

Are FHA loans assumable?
Absolutely, you can assume an existing FHA loan or allow a buyer to assume yours.

Will I have to pay mortgage insurance with an FHA loan?
Yes, in fact FHA mortgages often require you to carry mortgage insurance for longer than most conventional loans.

Can I get a "fixer-upper" of a home with a FHA mortgage?
Yes, however you might be required to fix certain problems in the home before you can get the full loan. Speak with us today for details on this.

FHA Qualifications
In order to qualify for an FHA loan, a borrower typically needs to meet this criteria:

Proven employment status of at least 2 years.
Steady or increasing income over a 2 year period.
History of on-time payment. No more than two missed payments on your credit.
If you've filed for bankruptcy you must wait at least 2 years and have good credit since you filed.
Those with foreclosures must wait at least 3 years since the most recent foreclosure.
Monthly mortgage payment should be roughly 30% of your gross income.
You must pay a minimum of a 3.5% down-payment.
Agree to 2.25% in closing costs
Only certain properties are eligible - single-family homes, condominiums, double-wide manufactured homes, modular homes and 2-4 unit properties.
The property must be your primary residence.

A VA loan is a mortgage loan guaranteed by the U.S. Department of Veteran Affairs (VA) that is available to most US service members. It offers some very great benefits to those that have served our country.

You can buy a home with no money down.
You can refinance your home up to 100% of the value of your home.
You never have to pay PMI (Private Mortgage Insurance).
Sellers can pay your closing costs.
They are usually easier to get because the Government insures the loan so that there is much less risk to the lender.
If you already have a VA Loan you might be eligible for a VA Streamline Refinance.
Disabled Veterans may qualify for a waiver of the Funding Fee if they receive any disability payments from the VA or if they are considered to be at least 10% disabled.

Who is eligible for a VA Loan?
As a rule of thumb, almost all active duty or honorably discharged service members are eligible for a VA loan.

You may be eligible for a VA loan if any one of these statements describes you:
I served 181 days during peacetime. (Active Duty)
I served 90 days during wartime. (Active Duty)
I served 6 years in the Reserves or National Guard.
I am the spouse of service member who was killed in the line of duty.
I currently receive disability payments from the VA.

What is the VA Funding Fee and is it required?
Yes, it is required. It is a fee paid directly to the Department of Veteran's Affairs so that they can guarantee your loan and provide you with the opportunity to receive a loan with little to no money out of pocket.

How much is the VA Funding Fee?
It depends on several factors including: Whether you are Active Duty, Retired, Guard or Reserve and whether you this is a first time use, subsequent use, or a cash-out refinance as well as how much of a down payment you are putting down. The fee can range from as little as 1.25% up to 3.3% of the loan. Generally, the more money you put down the lower the VA funding fee. Please contact us and we will help you to determine how what the exact cost of the VA Funding Fee would be for your particular situation.

Do I have to pay the VA Funding Fee out of pocket?
No, you can include the VA Funding Fee in your loan and pay the funding fee over the course of your loan.

Do I still have to pay other normal closing costs like Appraisal, Title and Escrows?
Yes, however with a VA loan if you are purchasing a new home the seller can pay for all or part of your closing costs.

Unlock Your Luxury Home Dreams with Jumbo Mortgage Loans
Jumbo loans are for mortgage amounts greater than $832,750 in 2026

Are you ready to step into the world of upscale living and claim the luxury home you've always envisioned? Discover the incredible advantages of Jumbo Mortgage Loans that can make your homeownership dreams a reality.

Leverage Your Buying Power: With Jumbo Mortgage Loans, you can aim higher and invest in a more substantial property. Say goodbye to the limitations of conventional loans, as Jumbo Loans provide the financial power to secure your dream home.
Minimal Down Payment: Contrary to popular belief, purchasing a luxury property doesn't have to drain your savings. Jumbo Loans often require a smaller down payment compared to the property's value, allowing you to preserve your liquidity for other investments or expenditures.
Competitive Interest Rates: Enjoy competitive interest rates that align with your financial goals. Jumbo Loans provide the perfect blend of affordability and luxury, ensuring that your monthly mortgage payments remain reasonable.
Tailored Financing Solutions: Your luxury home deserves a financing solution as unique as the property itself. Jumbo Loans offer flexibility in loan terms, enabling you to customize your mortgage to suit your financial situation and long-term plans.
No Compromises on Your Lifestyle: A Jumbo Mortgage Loan ensures you don't have to compromise on your desired standard of living. Live in the neighborhood you've always wanted, with spacious rooms, elegant finishes, and the amenities you deserve.
Preserve Your Savings: By requiring a smaller down payment and offering competitive rates, Jumbo Loans allow you to maintain a healthy savings cushion for unexpected expenses or future investments.
Ideal for Investment Properties: If you're considering investing in luxury real estate, Jumbo Loans can be an excellent tool for acquiring income-generating properties in upscale markets.
Professional Guidance: Navigating the world of luxury real estate financing can be complex. Trust in the expertise of our experienced mortgage specialists to guide you through the Jumbo Loan application process, ensuring a smooth and seamless experience.
Secure Your Future: Investing in a luxury property is not just a home; it's an investment in your future. Jumbo Mortgage Loans help you build wealth through real estate while enjoying the comfort and elegance you desire.

Make your move into the world of luxury homeownership today. Contact us to explore your options and take the first step towards owning the prestigious property you've always dreamed of. With Jumbo Mortgage Loans, the luxury lifestyle you've envisioned is within reach.

Homeowners looking to decrease their interest rate may consider refinancing. A refinance calls for the homeowner to obtain another mortgage loan. Those funds are then used to pay off the original mortgage loan and the homeowner is then bound by the terms of the new mortgage. Depending on your situation a refinance loan could be a great option. Along with decreasing your interest rate, refinance loans can also help you switch from an ARM to a FRM, and in some cases reduce your loan term.