Yes! Some conventional loan programs allow for as little as 3% down, depending on eligibility.

The idea that you must put 20% down is one of the biggest myths in the home-buying process. However, when your down payment is below 20%, you'll typically pay private mortgage insurance (PMI) until you reach 20% equity.

There’s no universal “best” loan type. The right choice depends on your goals and financial profile.

A conventional mortgage may be ideal if you have:

- Good or great credit

- Stable employment and income

- Moderate savings for a down payment

However:

- If you are an active-duty service member, veteran, or eligible surviving spouse, a VA loan may offer better benefits.

- If you’re purchasing in rural Arizona, a USDA loan might be advantageous.

- If your credit score is lower or your debt-to-income ratio is higher, an FHA loan may offer easier qualification.

Team CD at Fairway will review your full financial picture and guide you toward the most advantageous option.

Many Arizona homeowners refinance from FHA to Conventional when:

1. They want to eliminate mortgage insurance.
FHA mortgage insurance remains for the life of the loan unless you refinance into a Conventional loan and have at least 20% equity.

2. Their credit has improved significantly.
Better credit may unlock lower conventional rates, which can create long-term savings.

3. Market conditions change.
Even with better credit, it’s not always the right time to refinance. Rates, home equity, and your financial situation all play key roles.

Contact us and we can evaluate when refinancing would be most beneficial for you.

There are multiple ways Arizona buyers can reduce or completely cover closing costs:

Seller concessions:
Your agent may negotiate with the seller to pay some or all closing costs. Feasibility depends on current market conditions in your area.

Lender-paid credits (“buying up” your rate):
You may choose a slightly higher interest rate to receive credits that cover closing costs.

Gift funds:
Many programs allow family members, employers, or close friends to contribute funds for closing costs.

Arizona down payment assistance programs:
Options vary by county and statewide program availability. Your Fairway advisor can check which programs may fit your situation.

Owing taxes does not automatically disqualify you from getting a conventional mortgage. However, if a tax lien has been placed on your income or assets, this can prevent approval for a conventional loan through Fannie Mae.

If you owe taxes but have a repayment plan and have made on-time payments, you may still be eligible. Your Team CD advisor will help you understand your options.