Move-up buyers and investors — conventional financing opens doors FHA can't.
Conventional loans are for RGV buyers who've outgrown FHA — or who need financing that FHA doesn't allow. Investment properties, second homes, and move-up buyers with equity all fit better in conventional. The Valley is also attracting a growing investor class buying rental properties in McAllen and Edinburg, and conventional financing at 15–25% down is their primary tool. If you're putting 20% down or have solid equity to work with, conventional is often your best rate.
The RGV is seeing appreciation even in markets that were flat for years. If you bought FHA 3–5 years ago, you may have enough equity now to refinance conventional and drop MIP. Run the numbers with me — the monthly savings can be significant.
Conventional approvals in the RGV require strong documentation. I build complete files that anticipate underwriter questions about income, employment, and property — especially for investment purchases and self-employed borrowers.
Conventional rates in the RGV are based on credit score, LTV, and property type. A 760+ score with 20% down gets the best rate with no PMI. Investment properties carry a rate add-on of 0.5–0.75% over owner-occupied rates.
Yes. Conventional allows 2–4 unit investment properties with 25% down. If you plan to live in one unit, the down payment drops to 15% and rental income from the other units can help you qualify. The Valley has a strong rental market in McAllen and Edinburg — this is a solid strategy.
Conventional pricing is tiered — the better your score, the better your rate. 760+ gets the best pricing. 740–759 is one tier down. Below 700 you start feeling the cost significantly. If your score is between 620–680, FHA often has better rates despite the MIP.
Free consultation. I'll tell you exactly what you qualify for in Rio Grande Valley and what your real monthly payment will be. Pre-approval in 24 hours.
NMLS #2248652 · Licensed in Texas · Response in 24 hours or less