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  • Conventional Loans: Tucson, AZ

    With its comparatively low cost of living and dazzling scenery, lovely Tucson, AZ, has a lot to offer prospective home buyers who want some Southwestern flair.

    The housing market is quite accessible here, with homes priced about 16% lower than in nearby Phoenix, perfect for families looking to settle down in a brand-new home. If you’d like to live in a smaller community like Green Valley, prices are even better, and you’ll enjoy small-town comfort with a bustling metropolis nearby.

    If you’re ready to start home-buying in the Grand Canyon State, District Lending has numerous loan programs to help finance your home, including conventional loans. We make the mortgage process easy with our comprehensive services and competitive mortgage products designed to help you achieve your dream of home ownership.

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    Conventional Loans Tucson
  • Tucson, Arizona: Conventional Loan Options

    Unlike an FHA, VA, or USDA loan, a conventional loan refers to any mortgage not backed by the government; these home loans are provided directly by lenders with no government subsidization.

    Conventional loans are an excellent choice for those with higher credit scores, as they can get greater flexibility than with an FHA loan or other government-backed mortgage program. There are multiple options for conventional loans, each with its advantages.

    Loan Limits: Conforming Conventional Loans

    Conforming conventional loans are below the conforming loan limit set by the Federal Housing Finance Association; for 2023, this is any home loan of $726,200 or less for a single-family property.

    Fannie Mae or Freddie Mac can guarantee any mortgage of this size, meaning they are more widely available. Most conventional loans, particularly in the highly affordable area of Tucson, Arizona, are conforming home loans.

    Loan Limits: Non-Conforming Conventional Loans

    Non-conforming conventional or jumbo loans exceed the conforming loan limit of $726,200. They can’t be guaranteed by Fannie Mae and Freddie Mac, so they’re only offered to highly reliable borrowers who have proven they can afford the mortgage.

    A non-conforming conventional loan is a superb option if you’re purchasing an investment property or want something bigger than the standard conventional loan can finance.

    Jumbo loans require a higher down payment and have more stringent requirements, such as a credit score of about 700 or 720. Fewer lenders offer this loan program, but don’t worry – we’ll help you find a great home loan of any size.

    Fixed-Rate Conventional Loans

    This loan program locks in your rate at the beginning of your mortgage; it’s the perfect option if you buy when interest rates are low, as you can be guaranteed this rate throughout the life of your loan.

    If you want consistent mortgage payments and are happy with the rate available at the onset of your loan, fixed-rate conventional loans are a great choice. You can always refinance to an adjustable-rate mortgage later on in the life of your loan if you choose.

    Adjustable-Rate Conventional Loans

    An adjustable-rate mortgage, or ARM, will recalculate your interest rate based on market conditions within specific parameters. These mortgages can be significantly cheaper than fixed-rate conventional loans initially, which is an excellent option for younger, first-time homebuyers who expect to make more money later in their career.

    The best rates come with the best deal.

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    Factors to Consider When Buying a Tucson Home

    At District Lending, we believe in giving you all the options necessary to make an informed decision. We’ve developed a mortgage calculator to help you determine what conventional loan amount you can afford. You can input various factors to estimate your monthly mortgage payment to help budget more effectively.

    • What's Your Financial Picture?

      Your financial outlook determines your interest rate; everything from your credit score to your debt-to-income ratio and amount in savings will determine how lenders see you and what rates they will be willing to provide.

      If you have less-than-perfect credit or high debt, don’t fear – your dream of becoming a homeowner can still come true. Get in touch with one of our mortgage loan officers, and they can help you decide if government-backed loan programs, such as an FHA loan, are a better choice for you.

    • How Much Can You Afford in a Down Payment?

      The larger your down payment, the less you will pay over time. Most Arizonans put down about 7%.

      The average down payment in Arizona is $59,000, so paying that much upfront can be daunting. You may be eligible for Tucson’s down payment assistance program through the Community Investment Corporation if you have a low income.

    • Will You Have to Pay Private Mortgage Insurance?

      If your loan-to-value ratio is higher than 80% – in other words, if you put less than 20% down – you’ll be required to pay mortgage insurance. In Arizona, this is anywhere from 0.5% to 1% of the total home loan.

    • What Are the Closing Costs?

      Your closing costs go to pay the lawyer, title company, lender, and other agents involved in the mortgage process, and they range from 3% to 6% of the overall cost of your conventional loan. However, you can reduce these costs in many ways, and your mortgage loan officer can help you determine your options.

    The District Lending Difference

    Free Quote

    Many homebuyers are just curious about how much they can afford in conventional loans, so we’ll let you request a free quote without running your credit score. This can help you better understand your mortgage options before you fall in love with a home.

    Free quote
    Pre-Approval

    Getting pre-approved for conventional loans is incredibly easy with District Lending; you can do it all online and get preapproved in only a few hours. This frees you up for the best part of searching for an Arizona loan: finding that gorgeous Tucson home.

    Get Pre-Approved
    Mortgage Calculator

    Our convenient mortgage calculator lets you explore the different values determining your mortgage payment for a conventional loan, such as how much you’ll pay in mortgage insurance and the average property taxes. This helps you prepare for your Arizona home search so you know exactly how much you can afford.

    Mortgage Calculator

    Serving the community of Tucson, AZ and the surrounding area

    • Phoenix
    • Tucson
    • Scottsdale
    • Sedona

    Know exactly what to expect from your loan

    Get a free loan quote today and leave the guesswork behind.
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    • No hidden costs.
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    Buy
    Home Purchase
    Why District
    Read about all the benefits
    Process overview
    Simplified and easy to understand
    Apply now
    Start your application
    Get a quote
    See your rate with no commitment
    Perks
    Free refinance for 3 years
    Refinance with no closing costs
    No closing costs
    Zero costs options, what it means
    Realtor credits
    Get .5% towards your closing costs
    18 Day closing
    2X more likely to get your offer accepted
    Price match guarantee
    We beat competitors’ rates by .125% or more
    Rate defense
    Never miss out on rates dropping
    Refinance
    Rates
    About
    Reviews
    Hear from our customers
    Contact
    Answers within 2 business hours
    Meet the crew
    Our experts, mission, and values
    Careers
    Join us in making a difference
    Learn
    Blog
    Our knowledge at your convenience
    Mortgage secrets
    Short videos with tips&tricks
    Video library
    A short description can be here
    Calculator
    Calculate your mortgage payment
    Apply nowGet a quote