Loan Program
The Loan That Rewards You for Doing Things Right.
The most common loan in America, and for good reason. Conventional financing rewards solid credit with competitive pricing, down payments starting at 3%, and mortgage insurance that goes away instead of following you for the life of the loan.
Conventional Loans: What You Need to Know
If you have built decent credit and have some cash saved, conventional financing is usually where the math works best. It is flexible enough to cover a 3%-down first home or a 25%-down second home, and unlike FHA, the mortgage insurance is temporary. The tradeoff is that guidelines are tighter, which is exactly why the structuring matters.
Who This Is For
- Buyers with credit scores around 680 and above who want the best available pricing
- First-time buyers who have 3% to 5% saved and want mortgage insurance that eventually disappears
- Move-up buyers rolling equity from a current home into the next one
- Anyone buying a second home or vacation property, which FHA and VA do not allow
- Borrowers who want to avoid the upfront funding fees attached to government loans
How It Works
Your Conventional Loans Roadmap
No mystery steps, no waiting a week to hear back. Here is exactly how the process runs from first call to closing table.
- 1
Strategy call and credit review
We look at your credit, income, and available cash together, and I tell you which loan type actually serves you best — including when conventional is not the answer.
- 2
Full preapproval, underwritten
I collect income and asset documentation and get your file reviewed so your preapproval means something to a listing agent. This usually takes 24 hours or less once documents are in.
- 3
Shop with real numbers
You get payment scenarios at several price points so you know what a house actually costs each month before you fall in love with it.
- 4
Contract to closing
Appraisal, underwriting, conditions, and clear-to-close. I manage the timeline and update you and your agent as it moves, typically closing in 21 to 30 days.
Key Benefits
Why Borrowers Choose This Program
Mortgage insurance that ends
Conventional PMI cancels once you reach 20% equity, and drops automatically at 22%. On FHA, mortgage insurance generally sticks for the life of the loan unless you refinance. Over a 30-year horizon that difference is real money.
Down payments from 3%
Eligible first-time buyers can put down as little as 3%, and 5% opens the door for nearly everyone else. Gift funds from family are allowed, and down payment assistance can often be layered on top.
Pricing that follows your credit
Conventional pricing is risk-based, so a stronger credit profile and a larger down payment translate directly into better terms. If your score is close to a pricing tier, I will tell you exactly what it takes to cross it.
Widest property flexibility
Primary residences, second homes, investment property, condos, townhomes, and multi-unit properties are all in play. Government programs restrict most of those.
At a Glance
The Numbers, Plainly
Guidelines shown are general and current as of publication. Program availability varies by state, property, and borrower eligibility, and all loans are subject to full underwriting approval.
- Minimum down payment
- 3% for eligible first-time buyers, 5% standard
- Typical credit score
- 620 minimum, best pricing at 740+
- Debt-to-income
- Generally up to 45%, higher with strong compensating factors
- 2025 conforming loan limit
- $806,500 for a one-unit property in most Texas counties
- Mortgage insurance
- Required under 20% down, cancellable at 20% equity
- Occupancy allowed
- Primary, second home, or investment property
Myths & Misconceptions
Things People Believe That Cost Them Money
You need 20% down for a conventional loan.
You do not. 20% avoids mortgage insurance, but 3% and 5% conventional loans are common. Waiting years to save 20% while prices and rents rise is often the more expensive choice — we can run that math side by side.
Conventional is only for people with perfect credit.
The floor is generally a 620 score. Pricing improves as your score rises, so the question is usually not whether you qualify but whether a small credit adjustment before applying would save you money.
PMI is wasted money.
PMI is the price of buying years earlier than you otherwise could, and it is temporary. Many clients cancel it within a few years through appreciation or extra principal payments.
Client Experience
“Jason made the mortgage process incredibly easy and was always available to answer our questions.”
Homebuyer
Austin, TX
Testimonials reflect individual experiences. Results vary and are not a guarantee of future outcomes.
Not sure this is your program?
That is what the free strategy call is for. Twenty minutes, no obligation, and you leave knowing which financing path actually fits your situation.
Book a Free Strategy CallQuestions
Conventional Loans FAQs
As little as 3% if you are a qualifying first-time buyer, and 5% for most other purchases. Second homes typically start at 10% and investment properties at 15% to 20%. Gift funds from a family member are allowed on primary residences.
You can request cancellation once your loan balance reaches 80% of the original value, and the servicer must remove it automatically at 78%. If your home has appreciated significantly, a new appraisal can sometimes get you there sooner.
The general minimum is 620, but pricing tiers move at 660, 680, 700, 720, and 740. If you are sitting a few points below a tier, I will show you what it would take to get above it before we lock anything in.
Yes. Conventional financing covers investment property with a larger down payment, generally 15% for one unit and more for multi-unit. If the numbers work better on rental income than on your tax returns, a DSCR loan may be the stronger option.
For 2025 the one-unit conforming limit is $806,500 in most Texas counties. Above that you are in jumbo territory, which has its own guidelines — and options that include 5% down and no monthly mortgage insurance for qualified borrowers.
Let’s Solve Your Mortgage Situation.
Apply online in about 12 minutes, or grab a free 20-minute strategy call. Either way, you’ll leave knowing more than you do right now.