Arizona Residential Loans

Arizona residential loans are traditional mortgages that provide funding to individual borrowers for the purpose of buying a first or second home in Phoenix, Tucson, Scottsdale, Flagstaff, or any other area of the state. Alternatively, borrowers may also use residential loans to refinance an existing mortgage. Residential loan financing can take a number of different forms, such as conforming loans or jumbo loans, for example. We offer Arizona residential home loans to a variety of qualified borrowers, including first-time home buyers, relocation buyers, and investors. Borrowers can apply their residential financing toward the purchase of first or second homes, townhouses, condos, and other properties. On this page, we’ll tell you more about the kinds of residential loans we offer and how you can secure residential home financing.


Types of Arizona Residential Loans

Borrowers can choose from six basic types of residential financing: conforming, nonconforming, jumbo, super jumbo, FHA government, and subprime loans. Keep in mind that borrowers can use these residential loans for primary homes, second homes, or investment properties in the Phoenix metro region or other areas of Arizona. We’ve provided a brief explanation of each kind of residential loan below.


Conforming or conventional loans

Home loans that are secured by government sponsored entities (GSEs), such as Fannie Mae and Freddie Mac. Borrowers can use conforming residential loans to purchase a home or refinance a mortgage on single-family or multiple-family homes. Conforming residential loans have limits imposed by Fannie Mae and Freddie Mac. As of 2006, the limit for a single-family first mortgage is $417,000.


Nonconforming loans

Loans that do not qualify for sale and delivery to Fannie Mae or Freddie Mac because of the underwriting guidelines, loan amount, loan characteristics, or other reasons. Borrowers typically have to pay a rate and origination fee premium with nonconforming home loans.


Jumbo loans

Arizona residential loans that exceed the maximum loan amounts set by Fannie Mae and Freddie Mac. Usually, jumbo loan amounts range from $417,000 to $650,000. Jumbo loans are not secured by government sponsored entities and, as a result, tend to have higher interest rates and more stringent underwriting requirements.


Super jumbo loans

Residential loans for $650,000 or more. Most lenders have different criteria and pricing practices for home loans in excess of this amount, which is why super jumbo loans warrant their own classification.


Super jumbo loans

Residential loans for $650,000 or more. Most lenders have different criteria and pricing practices for home loans in excess of this amount, which is why super jumbo loans warrant their own classification.


FHA/VA government loans

Available to low- and moderate-income families with approved credit who would like to buy a home but do not qualify for traditional Arizona home loans. FHA loans can prove especially helpful to borrowers who do not have a large amount of cash to apply toward a home, as they require a down payment of only 3%.


Subprime loans

Residential loans for borrowers with credit challenges or limited credit histories. Subprime loans are inherently riskier for lenders than other types of home loans, which is why they have significantly higher interest rates and larger down payment requirements. Subprime loans are ideal for borrowers who do not have the credit requisite to qualify for an FHA or VA home loan.

Purchasing a Home

If you plan on purchasing a first, second, or investment home in Arizona, you will first need to secure a residential home loan. A loan’s interest rate is just one of several features that borrowers need to evaluate as they secure residential financing. When searching for your Phoenix area home loan, you should consider the following characteristics:

  • Interest rate
  • Loan amount
  • Loan term
  • Fees
  • Loan margins
  • Monthly payment

MC&I makes the home-buying process simple and convenient for all borrowers. Here are the three easy steps involved in purchasing a home:


Evaluating your financial situation.

MC&I will help you assess your current financial standing in order to determine what kind of loan you can afford and how much of a down payment you will have to make, if any.


Compare interest rates.

We will provide you with the most up-to-date rates and daily quotes to help you choose an Arizona loan that accommodates your financial needs.


Apply for a residential home loan.

During this step, you provide your lender with important details that pertain to your residential loan. The information you supply will help your lender determine your suitability as a borrower.