Competitive rates, flexible term options, and the ability to eliminate PMI over time — conventional financing rewards strong-credit Texas buyers.
Conventional loans are the backbone of the Texas mortgage market — backed by Fannie Mae or Freddie Mac and available without the government-program restrictions of FHA or VA. In Austin's high-appreciation market, where many tech-sector buyers have strong credit and equity from a prior sale, conventional financing often delivers the best long-term value. Unlike FHA loans, conventional PMI is not permanent — once your equity reaches 20%, you can request removal. And unlike VA loans, conventional financing works for investment properties and second homes. Rodolfo structures every conventional loan around your long-term goals: payoff timeline, cash position, and what you plan to do with the property in 5 to 10 years.
Move-up buyers with equity from a prior sale, buyers with credit scores above 700, tech-sector buyers in Austin or growing San Antonio neighborhoods, and investors purchasing rental properties.
Conventional rates in Texas vary significantly by credit score (620 vs 740+ can differ by 0.75–1.25%). For well-qualified borrowers, conventional rates are typically competitive with VA and lower than FHA on a monthly payment basis once PMI timing is factored in.
21–30 days for a clean conventional file. Complex income or property situations may extend to 35–45 days.
General guidelines — your specific situation may vary. Contact me for an exact assessment.
Minimum credit score of 620 (best rates typically at 740+)
Maximum DTI of 45% for most scenarios; up to 50% with compensating factors
Down payment of 3–20% depending on loan type and property use
Stable income documentation: W-2s, pay stubs, tax returns, or self-employment verification
Conforming loan limits: $766,550 for most Texas counties in 2024
Investment properties require 20–25% down and additional reserve requirements
From first conversation to keys in hand — here's what to expect.
Each Texas market is different. Here's how Conventional Loans works specifically in each area we serve.
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View ATX Details →Real questions I get asked all the time — answered directly.
Not automatically. For borrowers with credit scores between 620–679, FHA's rate advantage can outweigh the lifetime MIP cost for the first 5–7 years — especially if you plan to refinance or sell before PMI removal becomes possible on conventional. We run a side-by-side comparison at every consultation. The 'better' loan depends on your credit, down payment, how long you keep the loan, and whether MIP removal is achievable on your timeline.
For 2024, the conforming loan limit in most Texas counties is $766,550 for a single-family home. If your loan exceeds this, you move into jumbo territory — which has different qualification requirements and often slightly higher rates. However, we have jumbo programs that are competitive for well-qualified borrowers. Austin buyers purchasing in the $800,000–$1.5M range frequently navigate this exact situation.
Yes — Fannie Mae and Freddie Mac allow conventional loans on 2–4 unit properties. If you occupy one unit, you can use rental income from the other units to help qualify. This is a powerful strategy for first-time investors in markets like San Antonio, where duplexes are common in established neighborhoods. Down payment for 2-unit owner-occupied properties is 5%; for 3–4 units, it's 20% down with a conventional loan.
Credit score tiers significantly affect conventional pricing. A borrower with a 760+ score might receive a rate of 7.00% on a $300,000 loan with 20% down. A borrower at 700 might be priced at 7.375–7.50%. Over 30 years, that difference costs roughly $25,000–$35,000 more in total interest. If you're at 700 and can get to 720 or 740 within 60–90 days, it may be worth the wait. We run these numbers honestly so you can decide.
Texas property taxes are among the highest in the country — and they are fully counted in your debt-to-income ratio as part of your PITI payment (principal, interest, taxes, insurance). In Bexar County (San Antonio), effective tax rates average 2.0–2.3% of assessed value. On a $300,000 home, that adds $500–$575/month to your payment. This frequently surprises buyers comparing to states with lower property taxes. We always underwrite with real county-level tax data — not national averages.
Pay revolving credit card balances below 30% of limit before applying — this alone can move your score 20–40 points
Avoid opening new credit lines in the 90 days before application
Have 2 months reserves (bank statements) ready — conventional often requires reserve verification
For investment properties, line up rental comps in the market before application
Model 5% vs 10% vs 20% down scenarios before committing — the math often surprises people
Free consultation. I'll tell you exactly what you qualify for and what your real monthly payment will be. Pre-approval in 24 hours.
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