Conventional Loans in Texas. Flexible. Fast. Built for You.
The most versatile home loan available. As little as 3% down, no upfront mortgage insurance, and the flexibility to finance a primary home, second home, or investment property.
A conventional loan is any mortgage that is not backed or insured by the federal government. Unlike FHA, VA, or USDA loans, conventional mortgages are originated by private lenders and sold to investors through Fannie Mae and Freddie Mac. This makes them widely available and highly competitive on pricing.
As an independent mortgage broker, Kris shops conventional loan pricing across 20+ wholesale lenders, consistently finding rates below what retail banks quote. Conventional loans offer the most flexibility of any loan type, covering primary residences, second homes, investment properties, condos, and single or multi-family homes.
Who Qualifies for a Conventional Loan?
No minimum credit score required (780+ for best rates)
Stable employment history of at least 2 years
Debt-to-income ratio typically under 45%
Down payment of at least 3% (first-time buyers) or 5% (repeat buyers)
The property must meet conventional appraisal standards
US citizen, permanent resident, or eligible non-citizen
Pros and Cons
Advantages
PMI is removable once you reach 20% equity
Available for primary, second, and investment properties
No upfront mortgage insurance premium
Broad range of loan terms: 10, 15, 20, 25, and 30 years
Can finance condos and multi-family properties
Higher loan limits than government programs
Things to Consider
Requires stronger credit than FHA (None vs 580+)
PMI required with less than 20% down
Stricter debt-to-income requirements
Higher down payment needed for investment properties (15-25%)
Condos must meet additional eligibility guidelines
Frequently Asked Questions
Fannie Mae and Freddie Mac no longer set a minimum credit score for conventional loans as of 2025. Individual lenders may set their own overlays, but borrowers across a wide range of credit profiles can now qualify. Scores of 780 and above typically unlock the best available rates.
First-time buyers can put as little as 3% down through programs like Fannie Mae HomeReady or Freddie Mac Home Possible. Repeat buyers typically need 5%. If you put down less than 20%, private mortgage insurance (PMI) is required until your equity reaches 20%.
The conforming loan limit for most Texas counties in 2026 is $832,750 for a single-family home. Loans above this amount require a jumbo mortgage. High-balance loan limits may apply in select high-cost counties.
Yes. Conventional loans can be used for primary residences, second homes, and investment properties. Investment property loans typically require a larger down payment (15-25%) and slightly higher credit scores.
PMI on a conventional loan is automatically canceled by federal law when your loan balance reaches 78% of the original purchase price. You can also request early cancellation once you reach 80% equity through principal paydown or property appreciation.
Conventional loans require stronger credit and higher down payments but offer more flexibility, lower long-term costs, and the ability to remove PMI. FHA loans accept credit scores as low as 580 with 3.5% down but charge mortgage insurance for the life of the loan in most cases.
