A good fit if…
- Your credit is in good shape
- You want mortgage insurance you can remove later, or none at all
- You’re buying a second home or an investment property
- Your loan amount is at or under the 2026 conforming limit
The 2026 conforming loan limit
For 2026, the conforming loan limit for a one-unit home is $832,750 in every Arizona county. Loans at or under that amount follow standard Fannie Mae and Freddie Mac pricing. Above it, you’re in jumbo territory, which has its own guidelines.
How private mortgage insurance works
With a smaller down payment, conventional loans usually require private mortgage insurance (PMI). The good news: PMI pricing rewards good credit, and it doesn’t last forever.
- You can ask to remove PMI once your balance reaches 80% of the home’s original value.
- It drops off automatically at 78%.
- If your home’s value has risen, a new appraisal may let you remove it sooner, subject to the servicer’s rules.
Programs for first-time and income-qualified buyers
Fannie Mae’s HomeReady and Freddie Mac’s Home Possible programs offer reduced mortgage insurance and other perks for buyers under the area income limit. Conventional loans can also be paired with Arizona’s Home Plus down payment assistance. Pete will check which fits your income and the home’s location.
Conventional for second homes and rentals
Unlike FHA and VA, conventional loans work for second homes and investment properties. Expect stricter requirements: a larger down payment, cash reserves, and slightly different pricing. If your personal income is hard to document, a DSCR loan may be a better route for rentals.
Run the numbers
Common questions
What credit score do I need for a conventional loan?
Most conventional programs start at 620, and pricing improves as your score goes up. Pete can show how a small score bump might change your options.
Is the conforming loan limit different in Scottsdale?
No. Every Arizona county uses the baseline conforming limit, which is $832,750 for a one-unit home in 2026.
Can I use gift money for a conventional loan?
Yes. Gifts from family are allowed on primary homes and second homes with the right documentation. Pete will tell you exactly what the gift letter needs to say.
This page is general information, not a loan offer, rate quote or commitment to lend. Program guidelines, loan limits and assistance programs change; figures shown are as of 2026. Eligibility, down payment and terms depend on your credit, income, property and the program. Ask Pete for current details.