Capital Home Mortgage Abilene

Abilene Conventional Home Loans

Conventional Mortgage Lender Abilene Texas

Conventional Home Loans, Abilene Texas

When looking around for a mortgage, you may hear the words “conventional” and “conforming” used by mortgage lenders and loan officers.

If you’re new to the housing market, all these terms being thrown around casually feel overwhelming, but don’t worry because we’re here to translate. This guide will help you understand conventional mortgages better.

What Is a Conventional Loan?

A conventional loan is the most common type of mortgage offered by lenders. This loan is not guaranteed by a federal agency, such as the Federal Housing Administration (FHA), the Department of Veterans Affairs (VA), or the United States Department of Agriculture (USDA), which means that the loan is solely between you and your lender. The vast majority of homebuyers use conventional loans.

Types of Conventional Loans

Conventional loans are classified as either conforming or nonconforming.

Conforming loans meet the standards set by Fannie Mae and Freddie Mac, while nonconforming loans do not. Fannie Mae and Freddie Mac are two entities managed by the FHFA that purchase and guarantee conforming loans. Most lenders prefer to offer conforming loans as they pose less risk due to the financial backing provided by Fannie Mae and Freddie Mac.

The Benefits of a Conventional Loan

Although government-insured loans (like the FHA loan) have become more prevalent in recent years, conventional loans continue to dominate the market for the following reasons:

     1. Higher borrowing limits

The FHA loan limit for most areas in 2022 is $420,680, while the conventional loan limit is $647,200.

     2. Flexible terms

Conventional mortgage loans offer greater flexibility in terms of loan duration. Borrowers can choose between 10, 20, and 25-year terms, in addition to 15 and 30-year options usually offered by government-backed loans.

     3. You can cancel mortgage insurance

Conventional and FHA loans require mortgage insurance, but only conventional mortgages allow you to cancel private mortgage insurance (PMI) after achieving at least 20% equity in your home.

     4. Available for many property types 

You may utilize a conventional mortgage for various property types, including second homes, vacation homes, and rental properties. One of the most significant limitations of government-backed loans is that you can only use them for primary residences and certain types of FHA-eligible properties.

How to Get a Conventional Mortgage

The first step toward obtaining a conventional loan is submitting a mortgage application to your chosen lender. This could be a bank, a credit union, or direct lenders like Capital Home Mortgage.

Regardless of where you apply for a conventional home loan, your lender will want to ensure you meet specific criteria

     1. Credit score

Most conventional lenders require a credit score of 620 or higher to qualify for a conventional loan. The higher your credit score, the better your interest rates will be.

     2. Debt-to-income (DTI) ratio

Lenders will evaluate your debt-to-income ratio to determine how much you owe relative to your income. The standard DTI requirement for a conventional loan is 43% or less, though some lenders may be more lenient.

     3. Down payment

The standard down payment for conventional loans was 20%, but lenders are now willing to accept as little as a 3% down payment from borrowers with stellar credit. 

Here’s the catch: if you pay less than 20% down, you’ll also have to pay for private mortgage insurance until you’ve built up 20% equity on your home.

     4. Income and employment

Conventional loan lenders want to ensure that you have stable employment and that your income is enough to cover the loan’s monthly payments. They will require you to present your recent payslips and W-2 forms as proof of income and employment.

Is a Conventional Loan My Best Option?

For the majority of borrowers with good credit, the answer is yes. However, it depends on your circumstances and financial objectives.

The home loan specialists at Capital Home Mortgage can help you explore your options to help you decide whether or not a conventional loan is your best option. If for some reason, you fail to qualify for a conventional mortgage, we can help you find a different mortgage product that better fits your needs, lifestyle, and budget.

As a direct mortgage lender in Abilene, we control the mortgage process entirely, from application to closing. We can make homeownership a reality for you!

Why Abilene HomeBuyers are Choosing Capital Home Mortgage
Close On Time

Complete Control from Application to Funding

Low Rates & Low Fees

Direct Lender with Competitive Rates & Low Fees

Exceptional Service

7  Day a Week Support Application to Final Mortgage Payment

Abilene Mortgage Rates

Have you ever wondered why interests rates are what they are and what determines the final rate?  Why borrowers receive different interest rates? Or why rates go up and down?  Interest Rates are calculated using several factors.

  • Demand for mortgage Securities
  • Property securing the mortgage
  • occupancy of the property
  • Loan to value of the property
  • Borrower’s credit worthiness

Abilene Conventional Purchase Loans

Conventional Purchase Mortgage Lender
  • Freddie Mac or Fannie Mae Insured
  • Primary, 2nd or Investment Homes
  • Single and Multi Family
  • Condo’s and Manufactured Homes
  • MORTGAGE INSURANCE OPTIONS
  • LOWER RATES & FLExIXBLE TERMS
  • MAXIMUM LOAN AMOUNT – $766,550
  • HIGH BALANCE (VARIES BY COUNTY)

Abilene Conventional Refinance Loans

Conventional Refinance Mortgage Lender
  • Freddie Mac or Fannie Mae Insured
  • Primary, 2nd or Investment Homes
  • Single and Multi Family
  • Condo’s and Manufactured Homes
  • Mortgage Insurance Options
  • Lower Rates & Flexible Terms
  • Maximum Loan Amount – $766,550
  • High Balance (Varies By County)

Abilene Conventional Renovation Loans

Conventional Renovation Mortgage Loans
  • 95% LTV Primary  Residence
  • 97% LTV 1st Time Buyer Single Family
  • 85% LTV on 1 Unit Investment
  • 90% LTV on Second Home
  • Minimum Credit Score 620
  • Luxury Renovations are Eligible
  • Maximum Loan Amount – $766,550
  • High Balance (Varies By County)
ABilene Mortgage Programs

Abilene Home Purchase

Thinking of Buying an Abilene Home?

Looking to Purchase a Home? We have the loan program for you… Call today to speak with a loan officer to discuss your personal mortgage options.

  • Primary, Secondary, Investment
  • FHA, VA, USDA, Native American
  • Conventional, Jumbo, Non QM
  • Reverse, Renovation, Manufactured

Abilene renovation home loans

Looking to Rehab an Abilene Home?

Want the Charm of an Older Neighborhood? But want a new place or a fresh look? Why not look at a renovation loan?  Purchase the Perfect Home and make it your own. Call today.

  • Remodel, Renovate or Repairs
  • FHA 203K Streamline or full
  • fannie mae homestyle reno
  • freddie mac home choice reno

Abilene FHA Home Loans

Great for 1st Time Abilene Homebuyers

FHA Home Loans are great for first time home buyers, buyers with less than perfect credit, or buyers needing less out of pocket.   Call today to get started.

  • Smaller Down Payment
  • Flexible Underwriting
  • Higher Debt to Income Ratios
  • Lower Credit Scores OK

Abilene VA Home Loans

100% Financing for Abilene Veterans

Proudly Serving Active Duty servicemen and women, as well as, retired and disabled veterans. Call today to speak with a VA loan officer.

  • Simply Qualifying for Veterans
  • No Down Payments Requirements
  • Lower Credit Scores Accepted
  • Manual Underwriting Allowed

Abilene Conventional Home Loans

Flexibility for Abilene Homebuyers

Conventional Home Loans are the best option for flexibility of property types and for mortgage loan terms. Call today to get speak to a Loan Officer.

  • Primary, 2nd Home, Investment
  • Great Rates & Low Fees 
  • Single Family and Multi-Family
  • Renovation Loan Programs

Abilene Jumbo Home Loans

Abilene Non Conforming Loans

Jumbo Home Loans also called Non Conforming Home Loans are great options for buyers needing financing outside of agency limits.  Call today to speak to a loan officer.

  • Primary Residence and 2nd Homes
  • Higher Loan Amounts – 3 Million
  • Great Interest Rates
  • Investor Specific Guidelines

Abilene USDA Home Loans

100% Rural Abilene Home Loans

USDA Loans are a great option for families wanting to live outside of the city.  Call today to speak with a loan officer to discuss your personal loan options.

  • Rural Properties Only
  • Primary Residence Only
  • Geographic Restrictions
  • Income REstrictions

Abilene Native American Home Loans

Abilene HUD 184 Home Loans

HUD 184 Home Loans are solely for Native American and offer a variety of benefits.  Call today to speak with a loan officer to find out more.

  • Primary Residence Only
  • Manual Underwriting for All Loans
  • No Credit Score Requirements
  • Tribal Grants Allowed

Abilene Manufactured Home Loans

Great Alternative Abilene Housing

Abilene reverse mortgages

Your Abilene Home at Work

Reverse Mortgage Loans offer seniors options to use their home’s equity for cash or to eliminate payments. Call today to get speak to a Reverse Loan Officer.

  • primary residence only
  • simple qualifying – equity based
  • credit scores not applicable
  • Minimum age 62

Abilene Non QM Home Loans

Making Abilene Mortgages Possible

Looking for Non Traditional Home Mortgage Loan?  Contact a Loan Officer Today to discuss the alternative mortgage options currently available.

  • Purchase, Rate and Term & Cash-out
  • Primary, Secondary and Investment
  • Full Doc & Bank Statements Programs
  • Corporations OK

Abilene One Time Close mortgages

Build Your Abilene Dream Home

Want to Build? But unsure of what the future looks like? Remove the risk with a One Time Close Construction Loan.  Call today to see how a OTC loan works.

  • Primary Residence Only
  • Close Once
  • Lock Rate at Contract
  • Traditional Final Mortgage

Abilene Refinance Mortgage Loans

Abilene Rate & Term Refinance

Refinancing can be a hard decision and the payback can sometimes be confusing.  Call today and let our Loan Officers walk you through the process.

  • Reduce Mortgage Term
  • Lower Monthly Payments
  • Appraisal Waivers
  • Streamline Options Available

Abilene Cash-out Home mortgages

Abilene Equity Mortgage Loans

Cash-Out Mortgage Loans make use of the equity in your home by allowing you to refinance the current mortgage and access this equity to use as you see fit.

  • Debt Consolidation
  • Investment Opportunities
  • Home Improvement
  • Vacation or Education

Abilene Texas Mortgage Team

Dale Gremillion

Sr Loan Officer
NMLS #210325

Conor Hayhurst

Branch Manager
NMLS #743506

Sam Klaburner

Sr Loan Officer
NMLS #140132
Jordan Mowrey

Jordan Mowrey

SR Loan Officer
NMLS 210325

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