- Conventional Home Loans in Texas
Conventional Loans
Conventional home loans are one of the most popular types of loans in Texas and a great choice for many home buyers. Texas conventional mortgages can be used to purchase primary, secondary, and investment properties.
While conventional loans come with more rigorous standards than most government-backed loans, they offer several unique benefits that make them a good mortgage option for first-time homebuyers.
Conventional Loan Guidelines
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)
Conventional mortgages are ideal for borrowers that have higher credit scores and have different criteria as the loans are guaranteed by Fannie Mae or Freddie Mac. As such, conventional loans usually require less documentation than VA loans, FHA loans, or USDA loans which makes for easier qualifying.
Conventional Loan Advantages
Why are conventional mortgages so popular in Texas?
- You can avoid purchasing private mortgage insurance
- You can select a term length that works for you
- Loans are processed quickly
- Flexible down payment
If you want to purchase a home this year, you may be able to qualify for a Texas conventional loan. Here’s what you need to know about applying and qualifying for a conventional loan in Texas.
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
Headquartered in Grapevine, Texas, Lone Star Financing specializes in new home purchases and refinance. We do thousands of conventional loans every year and our loan officers have the experience to structure your loan tailored to your lending needs. As a direct lender, we offer a full line of home loan products (Conventional, FHA, VA and USDA Loans). At Lone Star Financing our motto is “Low rates, Low fees, and Fast Closings”. Let’s us give you a free no cost estimate and we look forward to earning your business.
More on Conventional Loans
Before you apply for a Conventional loan, there are a few things you need to know about Texas loan limits and 2024 requirements. It’s important to understand these limits and requirements before you apply. More on Texas conventional loans.
Conventional Loan Limits (2024)
Loan limits for conventional range from $80,000 (Lone Star min loan value to $766,500 (maximum conventional loan value).
Minimum, you will need a 620 credit score to qualify for a conventional mortgage. However, for the best mortgage rates we recommend our borrowers have a minimum credit score of 740 (for best rates).
The rule of thumb for conventional loan down payments is 20%, but it is possible you can put down as little as 3%.
Nonconforming
Non-conforming loans are loans that do not conform to the guidelines of Fannie Mae or Freddie Mac. The most common types of non-conforming loans are government-backed mortgages – like FHA, USDA and VA loans – and jumbo loans that are above Fannie Mae and Freddie Mac limits.
- A nonconforming mortgage is a home loan that does not adhere to government-sponsored enterprises (GSE) guidelines and, therefore, cannot be resold to agencies such as Fannie Mae or Freddie Mac.
- These loans often carry higher interest rates than conforming mortgages.
- Mortgages that exceed the conforming loan limit are classified as nonconforming and are called jumbo mortgages.
Texas Conventional Loans
Speak to a Loan Officer - Quick Rate Quote
"*" indicates required fields
