One of the most popular types of mortgages for buying a home in Texas is a conventional loan.
With the right qualifications, you can move into a home with a conventional loan with only 3% down.
Conventional mortgages also can include either fixed or adjustable rates, which makes them a flexible for different situations.
Let’s learn more about conventional loans in Texas.
What is a Conventional Loan?
A conventional mortgage is simply a home loan that is not backed by a government agency.
The term is often used interchangeably with “conforming loan.” But a conforming loan is one that fits within the conforming loan limits of Fannie Mae and Freddie Mac.
Both conventional conforming loans and conventional non-conforming loans exist.
A non-conforming loan is also known as a jumbo mortgage.
Conventional Loan Limits in Dallas, TX
Can you purchase a home using a conventional conforming loan in Dallas or elsewhere in Texas?
The conforming loan limits are set by county. Following are the conforming loan limits for Dallas County, TX:
In certain high-cost counties, the conforming loan limits are higher as well. But the loan limits for Dallas County are the same as those that you will find in the majority of counties throughout Texas and the United States.
Texas Conventional Mortgage Benefits
- The down payment for a conventional mortgage can start as low as 3% for borrowers with high credit scores and other strong financial metrics.
- If you put down 20% or more on a home with a conventional mortgage, you do not need to pay for private mortgage insurance (PMI).
- You can choose a fixed rate mortgage to lock in a predictable rate over the years ahead, or you can go with an adjustable rate mortgage to save money during the introductory period.
- You can choose a loan term that suits your needs as well. Some loan terms available for conventional mortgages include 10, 15, and 30 years.
Qualifying for a Conventional Mortgage in Texas
To figure out whether you qualify for a conventional mortgage, we will look at the following factors:
- Your credit score
- Your debt-to-income (DTI) ratio
- Your down payment ability
- Your employment status and history
- Your income
- Other financial context
The stronger your qualifications are, the lower your rates could be.
Apply Now for a Conventional Loan in TX
You may still have questions about conventional loans, or you might be ready to apply now. Please give us a call at (469) 886-8300 get the answers you need or to start the application process. We look forward to matching you with the conventional mortgage that fits your needs.