3% Down Payment In Arizona

Three Percent Down Mortgage Arizona

I am excited to announce that 3% down Conventional Financing is available.  This is not exactly brand new news however most Arizonans are not aware that Phoenix home-buyers can purchase a home using a Conventional mortgage with as little as 3% down.

In the past the Arizona Real Estate market was classified as “declining” which kept mortgage insurance companies from insuring a new mortgage with only a 3% down payment.  Good news – times have changed!   Based on an improving Arizona Real Estate Market, We now have access to mortgage insurance products that insure Phoenix area home-buyers with only a 3% down payment.  Without mortgage insurance, 3% down conventional mortgage options would be non-existent.  The reason is that anytime a home-buyer puts less than 20% down when purchasing a new home,  they must pay mortgage insurance in some form.  As a result, even if mortgage guidelines allow for a 3% down payment without mortgage insurance guidelines being okay with 3% down, home-buyers would not be able to utilize a 3% down mortgage to finance their home.

What Kind of Loan is Allowing 3% Down in Arizona?

The first trick to a 3% down mortgage is getting a mortgage insurance company to play along (mentioned above).  The second trick is to find a mortgage product/investor that will allow buyer’s to put down as little as 3% in Maricopa County Arizona.  We can now perform both trick 1 and trick 2.  My team has access to Conventional mortgage products directly through Fannie Mae and Freddie Mac.  Why does this matter?  Fannie Mae and Freddie Mac are the primary investors in the mortgage market allowing Arizona home-buyers to finance their home purchase with only 3% down.  We also work with several mortgage insurance companies that will insure a buyer with only 3% down.

3% Down Product  + 3% Down Mortgage Insurance = Great Mortgage Option

With the combination of a 3% down mortgage product and a mortgage insurance company that will insure a mortgage with only 3% down, Arizona home-buyers have access to another flexible low down payment home loan option besides FHA (which requires 3.5% down and carries higher mortgage insurance premiums).  It is important to note that a 3% down Conventional mortgage is “tougher” to qualify for than a 3.5% down FHA mortgage.  A buyer must have better credit, a lower debt to income ratio and an overall stronger file to get qualified for a Conventional mortgage with only 3% down.  However it is an option that cannot be overlooked in a home-buyers quest for the right mortgage plan.

The difference between an FHA loan and a 3% down Conventional loan on the same priced home is significant.  Feel free to call or email me today to find out what your home loan options are.  You can also apply online today by clicking APPLY NOW.

By Jeremy House



  1. […] backing up on some of their recent guideline tightening.  Just announced – “the Return of the 3% down Conventional Loan.”   Fannie Mae is bringing back a 3% down Conventional Loan (yes the same loan they just did […]

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