Austin, TX As Low as 3% DownRemove PMI at 20% Equity

Conventional Loans in Austin

From 3% down starter loans to move-up jumbo-adjacent financing — conventional covers Austin's range.

Austin's housing market demands financing that's fast, clean, and competitive. Conventional loans are the backbone of most Austin purchases above $350,000. With HomeReady and Home Possible options starting at 3% down, conventional can compete with FHA even for first-time buyers — and the PMI cancels when you hit 20% equity, which happens fast in an appreciating market. For move-up buyers with equity from their starter home, conventional gives you the flexibility to finance your next home before your current one sells.

Local Expert Insight

Conventional Loans in Austin — What You Need to Know

Common Challenges — and How I Solve Them

Austin buyers with RSU income often have complex compensation structures that standard underwriting doesn't handle well
I work with tech buyers at Dell, Apple, Oracle, and Tesla regularly. RSU income that has vested for 2+ years can be counted as qualifying income if documented correctly. I know exactly what the underwriter needs to see.
Local Insider Tip

If you bought in Austin pre-2022 and have significant equity, consider a conventional refinance cash-out to access that equity for your next investment or home improvement. Austin homeowners are sitting on 40–80% appreciation from 2019 values.

Approval Strategy for Austin Buyers

Austin conventional approvals for tech workers require careful handling of RSU/bonus income, especially for jumbo-adjacent loans. I build complete income analysis upfront so there are no surprises in underwriting.

Rates & Pricing

Conventional rates in Austin vary significantly by credit score and LTV. 760+ at 20% down is the best scenario. For buyers at 5% down with 680 credit, FHA may actually cost less when you factor in the rate difference. I always model both.

Conventional Loans in Austin — FAQs

HomeReady (Fannie Mae) or Home Possible (Freddie Mac) — both allow 3% down and offer reduced PMI rates for buyers at or below 80% of the area median income. Combined with strong credit, these programs can be more cost-effective than FHA over a 5-year window in an appreciating market like Austin's suburbs.

A true bridge loan is a specialty product. More commonly, buyers use a conventional loan and carry both mortgages temporarily, or sell first and use an extended leaseback from the seller. I'll walk through the options for your specific situation — the right approach depends on your equity position and cash reserves.

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Rodolfo Toscano | NMLS #2248652 | The Big Mortgage | Licensed in Texas (TXSML) | Equal Housing Lender | This is not a commitment to lend. All loans are subject to credit approval and property qualification.

Get Conventional Financing in Austin

Free consultation. I'll tell you exactly what you qualify for in Austin and what your real monthly payment will be. Pre-approval in 24 hours.

NMLS #2248652 · Licensed in Texas · Response in 24 hours or less