Conventional Loans in Texas
Conventional loans are the most common type of home loan. They aren't backed by the government, so the rules come from Fannie Mae and Freddie Mac instead. If you have fair to good credit and steady income, a conventional loan can cost less over time than other options. You may not need as much down as you think.
Why Buyers Choose Conventional
Low Down Payment
As little as 3% down for first-time buyers.
Mortgage Insurance Ends
It can come off once you build enough equity, so your payment goes down.
More Property Types
Use it for a primary home, a second home, or an investment property.
Help with Costs
Sellers can pay 3% to 9% of your closing costs, depending on your down payment.
Higher Loan Amounts
Borrow up to $832,750 for a one-unit home in 2026.
Things to Know
Conventional loans look at your whole financial picture, including your credit, income history, monthly debts, and savings. Stronger credit usually gets you better pricing. If you put down less than 20%, you'll pay private mortgage insurance until you build enough equity. The home needs an appraisal and should be in livable condition. If it needs repairs, a HomeStyle or CHOICERenovation loan lets you finance them in the same loan.
Common Questions
What credit score do I need for a conventional loan?
There isn't one set minimum. Approval depends on your whole file, including your income, debts, and savings. A higher score usually means a better rate and lower mortgage insurance. Lender requirements vary, so I compare options across many lenders to find the best fit for your credit.Do I need 20% down?
No. First-time buyers can put down as little as 3%, and other buyers as little as 5%. With less than 20% down, you'll have mortgage insurance until you build more equity.When does mortgage insurance go away?
You can ask your lender to remove it once you owe 80% of your home's original value. It comes off on its own at 78%. If your home's value goes up, you may be able to remove it sooner.Can my down payment be a gift?
Yes. A family member can give you part or all of your down payment. You'll need a signed gift letter and a record of the money moving into your account.Conventional or FHA: which is right for me?
It depends on your credit, your down payment, and how long you plan to stay. Conventional often costs less with stronger credit, while FHA can be easier with a lower score. I'll run both so you can compare the payments.
Want every step in one place?
My free guide walks you through the whole process, from your first call to closing day.
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