What Is a Conventional Home Loan?
The most popular mortgage option for Texas homebuyers with flexibility and competitive rates.
Build the life you want in your own Texas home
A conventional loan is a mortgage that isn’t insured or guaranteed by a government agency like FHA or VA. Instead, these loans follow guidelines set by Fannie Mae and Freddie Mac, and are backed by private lenders.
Because they’re not tied to government insurance programs, conventional loans often provide more flexibility—especially for borrowers with strong credit profiles, those buying investment properties, or anyone looking to avoid upfront mortgage insurance fees.
As your Texas mortgage team, we guide you through the process to find the best conventional loan rates and terms available. We’re committed to on-time, on-budget closings.
Who Is Conventional Financing Ideal For?
Conventional loans work well for a variety of Texas homebuyers. Here’s who benefits most.
First-Time Homebuyers
Put as little as 3% down and start building equity in your first Texas home with competitive rates.
Strong Credit Borrowers
Credit scores of 740+ unlock the best rates and terms—your good credit pays off here.
Second Home Buyers
Financing vacation homes or secondary residences with straightforward conventional options.
Real Estate Investors
Finance 1-4 unit investment properties across Texas and grow your portfolio with competitive rates.
Self-Employed Professionals
We understand complex income situations and know how to document self-employment properly.
Refinancing Homeowners
Lower your rate, shorten your term, or tap equity without government program restrictions.
Your dream Texas home awaits
Texas Conventional Loan Requirements
Here’s what you need to qualify. Don’t meet every benchmark? Let’s talk—we often have options.
Conventional vs. FHA: Which Fits Your Situation?
Both loan types have their place. Here’s a quick comparison to help you decide.
Conventional
FHA
Are You a Veteran or Active Military?
VA loans offer $0 down payment and no PMI. You may qualify for even better terms than conventional financing.
Explore VA Loans →Not sure which loan is right for you? We’ll help you compare your options.
LET’S TALKWhy Choose Adam & His Team?
We guide you through every step of the mortgage process. Here’s what that means for you.
Army Veteran
Integrity and service you can trust throughout your loan process.
On-Time Closings
We’re committed to closing on time and on budget—every time.
No Upfront Credit Check
We evaluate your situation first before pulling credit, protecting your score.
Education-First Approach
We explain your options clearly so you make informed decisions.
Dedicated Team
Work with the same team from application through closing.
Lender for Life
Annual real estate reviews to ensure your mortgage still works for you.
Conventional Loan FAQs
Common questions about conventional mortgages in Texas.
What’s the difference between conventional and government loans?
Conventional loans aren’t backed by government agencies (FHA, VA, USDA). They typically offer more flexibility, can be used for investment properties, and allow PMI removal once you reach 20% equity.
How much do I need for a down payment?
First-time buyers can put down as little as 3%. Most borrowers need 5% minimum. To avoid private mortgage insurance (PMI), you’ll need 20% down.
What credit score do I need for a conventional loan?
The minimum is typically 620, but scores of 740+ qualify for the best interest rates. We can help you understand where you stand and what options are available.
Can I buy an investment property with a conventional loan?
Yes! Conventional loans allow financing for 1-4 unit investment properties. This is a key advantage over FHA and VA loans, which are primary residence only.
How do I get rid of PMI?
With conventional loans, PMI can be removed once you reach 20% equity in your home. This happens automatically at 22% equity or by request at 20%—a major advantage over FHA loans.
What are the 2025 conventional loan limits in Texas?
The conforming loan limit for most Texas counties is $806,500 for single-family homes. Loans above this amount require jumbo financing with different requirements.
