Types of Conventional Loans Available in Mesa

Not all conventional mortgages are the same. Depending on your goals, you can choose from:

1. Conforming Conventional Loans– Meet Fannie Mae and Freddie Mac loan limits and are the most common choice for Mesa buyers.
2. Non-Conforming Loans (Jumbo Loans)– For properties that exceed the conventional loan limits in Maricopa County. These loans require higher credit standards but allow you to finance luxury or high-value homes.
3. Fixed-Rate Mortgages– Lock in the same interest rate for the entire term (typically 15, 20, or 30 years). Great for buyers who want stability in their monthly payments.
4. Adjustable-Rate Mortgages (ARMs)– Start with a lower introductory rate that adjusts after a set period. A good option for buyers who plan to sell or refinance in a few years.

🌟 Benefits of Conventional Loans in Mesa, AZ

Conventional loans come with significant advantages for Mesa-area homebuyers:

• Flexible Down Payments– As little as 3% down for qualified first-time buyers. If you can put down 20% or more, you can avoid private mortgage insurance (PMI).
• Lower Long-Term Costs– No upfront mortgage insurance premium (unlike FHA), which can save thousands at closing.
• Competitive Interest Rates– Borrowers with higher credit scores often qualify for some of the lowest rates available in Arizona.
• Versatile Property Options– Finance primary residences, vacation homes, and rental properties, which FHA and VA loans typically don’t allow.
• Higher Loan Limits– In Maricopa County, conventional loan limits are higher than FHA, giving buyers more purchasing power.
• Refinance Opportunities– Conventional mortgages are flexible for refinancing, whether to lower your rate, reduce your loan term, or pull cash out of your equity.

📋 Conventional Loan Requirements in Mesa, AZ

To qualify for a conventional mortgage with Coast2Coast Mortgage, here are the typical criteria:

• Credit Score– Minimum 620, though higher scores qualify for better terms.
• Down Payment– As low as 3% for first-time buyers; 20% or more removes PMI.
• Debt-to-Income Ratio (DTI)– Generally, 43% or less, though exceptions may apply with compensating factors.
• Employment & Income– Steady job history for at least two years with verifiable income. Self-employed borrowers must show tax returns and documentation.
• Property Standards– Must meet lender guidelines and be used as a primary, secondary, or investment property.

📊 Conventional Loan Limits in Mesa (Maricopa County)

Each year, the Federal Housing Finance Agency (FHFA) sets loan limits for conventional loans.

For Mesa and the greater Phoenix Metro area, conventional loan limits are higher than FHA caps, allowing you to finance homes in the $700,000+ range without needing a jumbo loan.

👉 If you’re buying a higher-priced home, Coast2Coast Mortgage also offers jumbo loans to cover properties above conventional loan limits.

🔄 FHA vs Conventional Loans in Mesa

Not sure if a conventional mortgage is right for you? Here’s how they compare:

• FHA Loans– Lower credit score requirements, 3.5% down, but require upfront and monthly mortgage insurance. Limited to primary residences.
• Conventional Loans– Higher credit required, as little as 3% down, no upfront mortgage insurance, and can be used for second homes and investment properties.

If you’re a first-time buyer with limited savings, FHA may work better. If you have stronger credit and want flexibility, conventional is often the smarter choice.