Texas Conventional Mortgages
CONVENTIONAL LOANS
30-Year and 20-Year Fixed Rate
Welcome to Lone Star Financing, your trusted lender for new home loans in Texas. Our conventional loans offer competitive rates for borrowers with good to excellent credit. For 2024, the conforming loan limit across all Texas counties is $766,550.
Conventional Loan Highlights:
- Flexible Loan Limits: Up to $766,550 across all Texas counties in 2024.
- Competitive Rates: Enjoy interest rates based on your credit score, with lower rates for borrowers with good to excellent credit.
- Versatile Loan Terms: Choose from a variety of fixed-rate and adjustable-rate mortgages (ARMs) to suit your financial goals.
- No Private Mortgage Insurance (PMI): With a 20% down payment, avoid PMI, making your monthly payments more affordable.
Lone Star Financing is a direct mortgage lender for 30-Year and 20-Year conventional home loans in Texas. Choose from a variety of fixed-rate and adjustable-rate mortgages (ARMs) to suit your financial goals. Call or Apply online in minutes and receive a free rate quote.
$766,550 MAX VALUE
Low payments that never change
Minimum FICO Credit Score
620
Minimum Down Payment
3% - 5%
Maximum Loan To Value
97%*
Maximum Debt To Income
45%*
Except Onse To 50%
Mortgage Insurance
Yes
Years Since Bankcruptcy
4
Years Since Foreclosure
7
Years Since Short Sale
4
Special Qualification Requirements
NONE
Conventional Loan Benefits
Credit-Based Rates: Texas Conventional Loans offer interest rates based on your credit score, rewarding excellent credit.
No PMI with 20% Down: With a 20% down payment, avoid private mortgage insurance (PMI).
Flexible Loan Terms: Choose from fixed or adjustable-rate mortgage options to fit your financial needs.
Texas Conventional Loans
Close on Time
Our goal is to close every loan in 30 days or less. In-house underwriting, processing, and closing for fast approval and on-time fundings.
Low Rates & Fees
Conventional Mortgages with Low Rates, Low Fees and Fast Closings. FHA, VA, and USDA Approved Lender.
Customer Service
Conventional loans in TX with top-notch customer support. We will be with you at every step from application to closing. Read what our customers are saying!
Why Lone Star Financing
Lone Star Financing offers highly competitive rates on conventional home loans in Texas – and in-house underwriting – to close loans fast. With flexible loan terms and a deep understanding of the Texas real estate market, we help tailor the perfect loan just for you.
- 30, 20 and 15-Year Terms
- Direct Mortgage Lender
- In-House Underwriting
- Low Rates & Low Fees
- Free Good Faith Estimate
- Local Texas Service
Why Choose Us? It's Our People!
Shawn Dulac
Sr. Loan Officer
NMLS #1320463
Pam Trevino
Sr. Loan Officer
NMLS #2188276
Ricardo Trejo
Branch Manager
NMLS #347481
Eden Vick
Sr. Loan Officer
NMLS #490185
Roman Balley
Production Manager
NMLS #2267211
About Conventional Loans
2024 Texas Guidelines:
* Freddie Mac and Fannie Mae Insured
* Primary, Second, or Investment Property
* Single, Multi-family or Condo
* $766,550 Max loan
* High Balance – 95% Loan to Value
* 97% Loan to Value
* Mortgage Insurance Options
* Lower Rates & Better Terms
* Manufactured Housing OK (Subject to Restrictions)
A Texas conventional loan is a mortgage option not insured or guaranteed by the federal government, offering borrowers a straightforward path to homeownership with competitive interest rates and flexible terms. Unlike FHA or VA loans, conventional loans are typically used for higher credit scores and lower debt-to-income ratios, which can lead to more favorable loan conditions. In Texas, these loans can be used for purchasing or refinancing homes, and they often require a higher down payment compared to government-backed loans. However, they provide greater freedom in choosing property types and loan terms, making them a popular choice for many buyers and homeowners.
Conventional loans are available for the purchase of a primary residence, for investment properties, or for second mortgages. It is necessary to have good credit and a substantial savings.
While conventional loans come with tougher underwriting standards compared to most government backed loans like Texas FHA Loans, Texas VA Loans and USDA loans, they still offer several advantages that make conventional loans the best option.
Here are a few of the advantages of conventional home loans in Texas:
- Eliminates PMI (private mortgage insurance)
- You can select the term length that works best you
- Conventional loans can be processed more quickly and closed faster
- Flexible Down Payments
Conventional loans offer several advantages for borrowers. They often come with competitive interest rates and flexible terms, allowing for customization of monthly payments and loan durations. Because they aren’t backed by the government, they generally offer fewer restrictions on property types and use, which can be advantageous for buyers looking at unique or high-value properties. Additionally, if you make a down payment of at least 20%, you can avoid private mortgage insurance (PMI), potentially lowering your overall costs. Conventional loans also tend to have more straightforward qualification requirements, especially for those with good credit histories, making them a flexible and accessible option for many homebuyers.
FIXED RATE LOANS: A fixed conventional loan is a popular mortgage option where the interest rate remains constant throughout the life of the loan, providing predictable monthly payments and stability for borrowers. This type of loan is ideal for those who prefer the security of knowing their payments won’t fluctuate with market conditions. Typically available in various term lengths, such as 15, 20, or 30 years, fixed conventional loans offer flexibility in choosing a term that fits your financial situation. With its consistent payments and straightforward terms, a fixed conventional loan is a reliable choice for managing homeownership costs effectively.
ADJUSTABLE RATE LOANS: Are known as ARM’s are also available with all mortgage products although are limited with FHA, USDA and VA mortgages. ARM’s are a great fit for home buyers in Texas who plan to sell or refinance their home within 1 to 5 years after purchase. An adjustable rate mortgage begins as a fixed rate for a specific period of time and then the rate adjusts on predetermined time period based on financial index and a fixed margin. In order to qualify for a Texas conventional loan, you need good credit and a large savings account.
Key Features of Conventional Home Loans:
Down Payment: Conventional loans typically require a down payment, which can range from as low as 3% for some loan programs to higher percentages for others. Generally speaking, a larger down payment will result in better loan terms.
Private Mortgage Insurance (PMI): If the down payment is less than 20%, lenders usually require PMI, which helps to protects the lender in case of default. It’s generally advised for borrowers to remove PMI once enough equity has been built up.
Interest Rates: Conventional loans in Texas can have fixed or adjustable interest rates. Fixed-rate loans maintain the same interest rate throughout the life of the loan, while adjustable-rate loans can change periodically based on mortgage indexes and market conditions.
Texas Loan Limits: Conventional loans are subject to conforming loan limits set by the Federal Housing Finance Agency (FHFA). Loans in Texas that exceed $766,550 are considered jumbo loans, which may have stricter qualification criteria and higher interest rates.
Credit Requirements: Conventional loans typically require a higher credit score compared to government-backed loans. But the upside with going conventional is that these loans are more flexibility and can accommodate a wider range of credit profiles.
Mortgage Terms: Conventional loans usually come with terms of 15, 20, or 30 years, allowing borrowers to choose a repayment period that fits their financial situation.
Lone Star Financing is a direct lender for conventional loans in Texas. Our loan officers have helped thousands of Texans close on conventional loans and we can help structure the perfect loan just for you. Call or Apply online to receive a free rate quote and good faith estimate.