Texas Conventional
Home 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.