TEXAS MORTGAGE BROKER · SINCE 2012
Conventional Loans in Texas
For buyers with solid credit and stable income, conventional loans offer the best rates and the most flexibility. This is how most of my Texas clients finance their homes.
Why Choose a Conventional Loan?
Conventional loans typically offer the most competitive rates and terms available to qualified buyers. They are not backed by a government agency and instead follow Fannie Mae and Freddie Mac guidelines, allow down payments as low as 3%, and let you remove private mortgage insurance once you reach 20% equity rather than carrying it for the life of the loan.
Key facts:
- Minimum down payment: 3% (5% for non-first-time buyers in some cases)
- Minimum credit score: 620, with the best pricing typically at 740 or higher
- PMI is required below 20% down and is removed once you reach 20% equity
- 2026 conforming loan limit in every Texas county: $806,500 (FHFA)
- Works for primary residences, second homes, and investment properties
The conforming loan limit determines the maximum loan amount for a conventional mortgage. For 2026, that limit is $806,500 in every Texas county (FHFA), which covers most homes from affordable neighborhoods in San Antonio to growing suburbs in DFW and Austin. Above that amount, you are looking at a jumbo loan.
As an independent broker, I have access to wholesale conventional rates that most retail lenders cannot match. It is the same low-overhead model behind Mortgage Austin, my Austin-area brand, and the savings get passed directly to you. For where the market sits today, see current Texas mortgage rates.
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Best Rates Available
Qualified borrowers with strong credit and solid income typically get the lowest rates through conventional financing. This is where the broker advantage really shows.
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No Permanent PMI
Once you reach 20% equity, private mortgage insurance is removed. With FHA, mortgage insurance stays for the life of the loan in most cases.
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Maximum Flexibility
Conventional loans work for primary residences, second homes, and investment properties. They also offer the widest range of term options.
What Are the Conventional Loan Requirements in Texas?
To qualify for a conventional loan in Texas, you generally need a credit score of 620 or higher, a down payment of at least 3%, stable documented income, and a debt-to-income ratio within Fannie Mae and Freddie Mac guidelines. If you put down less than 20%, private mortgage insurance applies until you reach 20% equity.
✓ Minimum 3% down payment (5% for non-first-time buyers in some cases)
✓ Credit score of 620 or higher (best rates typically require 740+)
✓ PMI required if down payment is less than 20%
✓ Stable employment and income documentation
✓ Debt-to-income ratio guidelines per Fannie Mae/Freddie Mac
Here is how conventional compares with FHA financing on the points buyers ask about most:
| Feature | Conventional | FHA |
|---|---|---|
| Minimum down payment | 3% | 3.5% (10% below a 580 score) |
| Typical minimum credit score | 620 | Lower scores allowed |
| Mortgage insurance | Removed at 20% equity | Stays for the life of the loan in most cases |
See What Conventional Rate You Qualify For
I will pull your numbers and show you exactly what wholesale pricing looks like for your situation.
Anthony Ferrando | Ferrando Financial LLC | NMLS# 2403080