Shopping for a home in the East Valley is exciting. But the moment someone asks, “What kind of loan are you going with?” many buyers go blank. FHA? VA? Conventional? Jumbo? Each one works differently, costs differently, and is built for a different kind of buyer.
Here’s a clear breakdown of all four before you start house hunting.
So Many Loans, One Right Fit
The four main mortgage types each serve a specific purpose. Knowing what they require and who they’re designed for helps you walk into the homebuying process with confidence.
Let’s break them down one by one.
FHA Loans: For Buyers Building Their Financial Foundation
An FHA loan is backed by the federal government and designed to make homeownership more accessible, especially for buyers who may not have perfect credit or a large savings account.
Best for:
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First-time homebuyers getting a foothold in the market
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Buyers with credit scores as low as 580
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Those who can put down as little as 3.5%
The trade-off is mortgage insurance. FHA loans require both an upfront and annual mortgage insurance premium (MIP), which adds to your monthly payment. For 2026, the loan limit in most areas is $541,287.
VA Loans: A Game-Changer for Those Who Served
A VA loan is one of the strongest mortgage benefits available to military veterans, active duty service members, and eligible surviving spouses.
What sets it apart:
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No down payment required
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No private mortgage insurance (PMI)
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Flexible credit requirements
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No set loan limit for buyers with full VA entitlement
If you’ve served, this should be the first loan you explore. It’s especially powerful in higher-priced Phoenix area markets where every dollar of savings counts.
Conventional Loans: The Standard for Financially Ready Buyers
A conventional loan isn’t backed by any government agency. It follows Fannie Mae and Freddie Mac guidelines and is the most widely used loan type in the country.
Best for:
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Buyers with a credit score of 620 or higher
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Those with a steady income and manageable debt
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Buyers putting down anywhere from 3% to 20%
The 2026 conforming loan limit in Arizona is $832,750 for a single-family home. Put down 20% or more, and you skip private mortgage insurance entirely, which lowers your monthly payment right away.
Jumbo Loans: Built for High-Value Homes
A jumbo loan covers any amount above the conforming loan limit. In Arizona for 2026, that means anything over $832,750.
Best for:
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Buyers purchasing higher-priced homes in neighborhoods like Scottsdale, Arcadia, or Paradise Valley
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Borrowers with strong credit and healthy savings
What lenders typically look for:
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Credit score of 720 or higher
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Down payments starting as low as 5% for loans up to $2 million in Arizona
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A solid debt-to-income ratio
Jumbo loans are not government-backed, so each lender sets its own qualifying standards, meaning terms and requirements can vary from one lender to the next.
Not Sure Which One Fits Your Situation?
One of the most common questions I get is, “Which loan is right for me?” The honest answer: it depends on your credit, your goals, and the home you’re after. I’ve spent over 30 years helping buyers across the Valley, from first-time buyers in Mesa and Gilbert to homeowners refinancing in Tempe and Chandler.
I’d be happy to walk you through your options and find the right fit. Reach out to me and let’s figure it out together.
One More Thing Worth Knowing
Unlike a bank that’s limited to its own products, a mortgage broker has access to multiple lenders and loan programs. That means more options and better odds of landing a loan that actually fits your budget and your timeline, whether you’re buying your first home, refinancing, or investing anywhere in the Greater Phoenix area.
When you’re ready to compare real numbers and real options, connect with me at Price Mortgage, and let’s find the right home loan for your specific situation.
Sources: bankrate.com, veteransunited.com, singlefamily.fanniemae.com, investopedia.com, pricemortgage.com
Header Image Source: Scott Graham on Unsplash
