Conventional Loans in Scottsdalecompared across multiple lenders.
A conventional loan is the everyday mortgage most people picture when they think about buying a home. As a Scottsdale mortgage broker, we compare available lender options for your primary home, second home or investment property, then walk you through the tradeoffs in plain English. All loans are subject to eligibility and underwriting.
Pillar Mortgage Group, LLC, NMLS #2700076 | Arizona License MB-2009671 | Equal Housing Opportunity
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A conventional loan is a mortgage that is not insured or backed by a government agency like FHA or VA. Most conventional loans follow guidelines set by Fannie Mae and Freddie Mac, which lets many different lenders offer them. They can be used to buy or refinance a primary home, a second home or an investment property, with fixed or adjustable rate choices.
Pillar Mortgage Group, LLC is a licensed Arizona mortgage broker based in Scottsdale. We compare conventional options from multiple lenders, show you how pricing and terms differ, and help you decide whether conventional is the right fit or whether an FHA loan, a VA loan or a jumbo loan deserves a closer look. Every option is subject to eligibility and underwriting.
Is a conventional loan a good fit for you?
Conventional financing is flexible, which is why so many borrowers start here. It tends to work well in these situations.
Borrowers with a solid file
If your credit history is established, your income is documented and you have funds saved for the down payment and closing costs, conventional pricing and terms are often worth comparing first.
Buyers watching cash to close
Low down payment options may be available for eligible buyers, including first-time buyers. We walk through how a smaller down payment affects mortgage insurance and your monthly cost.
Second home and investor buyers
Unlike FHA and VA, which focus on owner-occupied homes, conventional loans can also finance second homes and investment properties, subject to occupancy rules and lender guidelines.
Business owners with clean returns
Self-employed borrowers may be able to qualify for a conventional loan using their tax returns. If write-offs reduce your qualifying income, a bank statement loan may be worth comparing alongside it.
How much do you need to put down on a conventional loan?
There is no single answer. Conventional loans allow a range of down payment amounts, and low down payment options may be available for eligible buyers. What you can put down depends on the program, the property type, how you will use the home, your credit profile and the lender's guidelines. Second homes and investment properties generally call for a larger down payment than a primary residence.
A bigger down payment lowers your loan amount and may improve pricing. A smaller one keeps more cash on hand. Neither choice is right for everyone, so we show you both sides before you decide. Gift funds from family may be allowed in some cases, subject to program rules and documentation.
What is PMI?
Private mortgage insurance, or PMI, protects the lender, not you, when a conventional loan is made with a smaller down payment. It is usually added to your monthly payment, though some lenders offer other structures, such as a single upfront premium or lender-paid coverage built into the rate. We compare these side by side.
Can PMI be removed?
In many cases, it can be. On many conventional loans, borrower-paid PMI may be cancelled once you build enough equity, through payments or an increase in the home's value, and some loans have it end automatically under federal rules. Cancellation depends on your payment history, the loan terms and the servicer's requirements, which can include a new appraisal. This is a key difference from FHA mortgage insurance, which follows its own rules.
Fixed or adjustable? Match the loan to your plans.
Both are common with conventional financing. The right choice depends on how long you expect to keep the home and how much payment change you are comfortable with.
Fixed-rate mortgage
Your interest rate stays the same for the life of the loan, so your principal and interest payment does not change. Fixed loans come in several term lengths, and a shorter term generally means a higher payment but less total interest.
Adjustable-rate mortgage (ARM)
An ARM starts with a fixed rate for an initial period, then adjusts on a set schedule based on a market index plus a margin, within caps written into the loan. It may suit buyers who expect to sell or refinance before the fixed period ends, but payments can rise later.
Primary, second home or investment?
How you plan to use the property is one of the biggest factors in a conventional loan. It affects pricing, down payment and documentation, so describe your plans accurately from the start.
Primary residence
The home you live in most of the year. Primary residences generally come with more flexible down payment options and more favorable pricing than second homes or rentals.
Second home
A home you use part of the year for yourself, such as a winter place in Scottsdale. Lenders set rules on how it is used and whether it can be rented.
Investment property
A home you buy to rent out. Conventional investor loans usually call for a larger down payment, more reserves and different pricing. A DSCR loan is another path to compare.
Accuracy matters
Occupancy is certified in your loan documents. We help you pick the category that truly matches your plans so the loan is set up correctly.
What lenders look at for a conventional loan.
There is no single number that makes or breaks an application, and requirements vary by program and lender. An underwriter will generally consider:
- Credit history. How you have handled credit over time, including payment history and any recent changes. Your credit profile also affects pricing and mortgage insurance.
- Income and employment documentation. Pay stubs, W-2s and tax returns for salaried borrowers, and business and personal returns for self-employed borrowers. Lenders look for income that is stable and likely to continue.
- Assets and reserves. Bank and investment statements that show funds for the down payment and closing costs, and in many cases reserves left over after closing.
- Debts. Monthly obligations like car loans, student loans and credit cards, weighed against your income along with the new housing payment.
- The property. An appraisal and property review confirm value and condition. For condos and some planned communities, the lender may also review the association.
We review these areas with you before you apply so there are fewer surprises later. Our mortgage process page shows what happens at each stage, from the first conversation through closing.
Explore Conventional Loan Options
See how conventional stacks up for your purchase or refinance. Start with a pre-approval or request a personalized rate-and-fee comparison.
Conventional vs. FHA, VA and Jumbo at a glance.
A high-level view only. Every program has its own eligibility rules, and the right fit depends on your full scenario.
| Program | Backing | Property use | Mortgage insurance | Often considered by |
|---|---|---|---|---|
| Conventional | Not government-insured; most follow Fannie Mae and Freddie Mac guidelines | Primary, second home or investment | PMI with a smaller down payment; may be removable under certain conditions | Borrowers with established credit and documented income |
| FHA | Government-insured by the Federal Housing Administration | Primary residence | FHA mortgage insurance, with its own rules | Buyers who want more flexible qualifying, subject to FHA guidelines |
| VA | Backed by the Department of Veterans Affairs | Primary residence | No monthly mortgage insurance; a VA funding fee may apply unless exempt | Eligible veterans, service members and qualifying surviving spouses, subject to VA eligibility and lender approval |
| Jumbo | Not government-insured; above the conforming loan limit | Primary, second home and some investment | Varies by lender | Buyers at higher price points who need a larger loan amount |
Your conventional loan, step by step.
Clear communication from pre-approval through closing, with a real person on the other end.
Share Your Goals
Tell us what you want to buy or refinance, how you will use the property and what monthly payment feels comfortable.
Get Pre-Approved
We review income, assets and credit and issue a written mortgage pre-approval when you qualify.
Compare Lenders
We compare available conventional options across lenders, including rate, costs, term and mortgage insurance choices.
Close with Clarity
We coordinate appraisal, underwriting and title and keep you updated until closing day.
Questions about conventional loans.
Do not see yours? Contact our team or email [email protected].
Explore conventional loan options with a Scottsdale broker.
Start your pre-approval online, request a rate quote, or book a call to talk it through. You can also reach us at [email protected].
Not a commitment to lend. All loans are subject to credit approval, underwriting guidelines and property eligibility. Programs and terms may change without notice. Pillar Mortgage Group, LLC | NMLS# 2700076 | AZ License MB-2009671 | Equal Housing Opportunity. See Licensing and Disclosures.