Conventional Loans in Texas – Flexible Financing for Every Buyer
Whether you're buying your first home or your next investment property, conventional loans offer competitive rates, fast approvals, and unmatched flexibility.
Find Out If You Qualify Today
Check your Conventional Loan eligibility in 60 seconds.
What is a Conventional Loan?
A conventional loan is a mortgage that is not backed or insured by any government agency (like FHA, VA, or USDA). Instead, they are backed by private lenders and typically follow the guidelines set by Fannie Mae and Freddie Mac. Because the government doesn't guarantee them, conventional loans often require a slightly higher credit score, but they reward borrowers with the most competitive interest rates and flexible terms available in the Texas market.
Primary Homes
Perfect for your main residence with down payments as low as 3%.
Second Homes
Finance a vacation or secondary property with favorable terms.
Investment Properties
The go-to choice for real estate investors building a portfolio.
Why Choose a Conventional Loan?
Discover the unique advantages that make conventional financing the most popular choice for Texas homebuyers.
Low Down Payment Options
First-time buyers can put down as little as 3%, while repeat buyers can put down just 5%.
Cancelable Mortgage Insurance
Unlike FHA loans, you can request to cancel your Private Mortgage Insurance (PMI) once you reach 20% equity.
Higher Loan Limits
Finance more expensive properties with higher conforming loan limits compared to standard government loans.
Flexible Property Types
Use it for a primary residence, a vacation home, or an investment property—the choice is yours.
No Upfront Funding Fees
Save thousands at closing by avoiding the upfront mortgage insurance premiums required by FHA and VA loans.
Competitive Interest Rates
Borrowers with good to excellent credit scores are rewarded with highly competitive interest rates on the market.
Conventional Loan Requirements
While conventional loans offer great flexibility, they do have specific qualifying criteria. Here's what lenders typically look for:
Credit Score of 620+
A minimum score of 620 is required, but scores of 740 or higher secure highly competitive interest rates.
3% to 20% Down Payment
First-time buyers can qualify with 3% down. Putting 20% down eliminates the need for Private Mortgage Insurance (PMI).
Debt-to-Income (DTI) Ratio
Your total monthly debts (including the new mortgage) should ideally not exceed 45-50% of your gross monthly income.
Stable Income & Employment
Lenders typically look for a consistent two-year employment history in the same field or line of work.
Not sure if you meet the requirements?
Don't disqualify yourself! Many buyers are surprised to find out they qualify for a conventional loan, or we can help put you on a path to qualify soon.
Run the Numbers
Use our mortgage calculator to estimate your monthly payments for a conventional loan.
Mortgage Calculator
Estimate your monthly payments
Estimated Monthly Payment*
*Hypothetical monthly mortgage payments reflect hypothetical principal & interest amounts rounded-sm to the nearest dollar amount and do not include estimated insurance, taxes, or other possible fees. These figures and rates are for educational purposes only and do not reflect an official mortgage loan offer.
Want exact numbers based on today's conventional rates?
See What You Can Afford in 60 Seconds
Stop guessing. Get a realistic estimate of your maximum home price and monthly payment based on current Texas rates and guidelines.
- No credit check required
- Includes estimated Texas property taxes*
- Instant results delivered to you
Conventional vs. Other Loans
See how conventional financing stacks up against other popular mortgage options in Texas.
| Feature | Conventional | FHA | VA |
|---|---|---|---|
| Min. Credit Score | 620 (740+ for competitive rates) | 580 (or 500 with 10% down) | No strict minimum (typically 620) |
| Min. Down Payment | 3% | 3.5% | 0% |
| Mortgage Insurance | Cancelable at 20% equity | Required for life of loan (usually) | None (Upfront funding fee instead) |
| Property Types | Primary, Second, Investment | Primary Residence Only | Primary Residence Only |
| Upfront Funding Fee | None | 1.75% of loan amount | 1.25% - 3.3% of loan amount |
Maximize Your Buying Power
Did you know there are down payment assistance programs in Texas that can be paired with conventional loans? Let's find out how much free money you might qualify for.
Conventional Loan FAQs
Everything you need to know about conventional mortgages in Texas.
Your Local Texas Conventional Loan Professionals
We proudly serve homebuyers across the great state of Texas. Whether you're looking to buy a condo in downtown Austin, a family home in the suburbs of Dallas, a townhome in Houston, or property in San Antonio, our local knowledge ensures you get the right conventional loan for your specific market. Real estate moves quickly in Texas—you need a local lender who moves with you.
Ready to Move Forward?
Take the first step toward your new home. Spots fill quickly each week, so schedule your free consultation or apply online today to lock in your rate.