Capital Home Mortgage Texas

Texas Conventional Home Loans

Home Purchase
Save Today
Have Questions?

Texas Conventional Mortgage Lender

Texas Conventional Home Loans

When it comes to financing the purchase of your new home, you have several options depending on your income, debt, credit history, and other factors. While each loan type has advantages and disadvantages, the conventional loan remains the most popular home loan option for both new and repeat homebuyers.

What Is A Conventional Loan?

A conventional loan is any mortgage loan not guaranteed by the government (i.e., FHA, VA, or USDA). Most conventional loans nowadays are considered “conforming loans” because they are written per the guidelines established by Fannie Mae or Freddie Mac – agencies that work to standardize mortgages in the United States. 

The maximum conforming loan amount for 2022 is up to $647,200 in most parts of the country and up to $970,800 for high-cost areas.

Requirements for a Conventional Loan in Texas

Like all other types of mortgages, the requirements for conventional loans can vary from lender to lender, but they generally follow the exact minimum requirements:

  • Down payment: 

A conventional mortgage may require a sizable down payment. Depending on your credit history and other factors, you can expect to put anywhere between 3% and 20%. A larger down payment, however, may lower your interest rate and save you from paying private mortgage insurance (PMI).

  • Credit score: 

Regardless of how much you put down, lenders will consider your credit score when deciding whether or not to approve your mortgage. 

A credit score tells lenders how likely you are to repay a loan. Borrowers with higher credit scores are often regarded as less risky by lenders and have higher chances of qualifying for a conventional mortgage with better terms. Conventional loans require a FICO score of 620 to qualify.

  • Debt-to-income ratio: 

Your debt-to-income ratio also plays a critical role in the approval (or rejection).

Your DTI shows lenders how much of your income goes to debt payments, so they know you’re not taking on more debt than you can handle. The lower your DTI, the better. In most cases, conventional loan lenders prefer a DTI of 43% or less.

  • Closing costs: 

Borrowers must also consider out-of-pocket expenses during the closing of the loan. The closing costs for a conventional loan can be more than other kinds of mortgages. You may be required to pay appraisal fees, origination fees, and – If your down payment is less than 20% – you will almost certainly be required to pay private mortgage insurance.

Do you want to know if you qualify for Texas conventional home loan? Pre-qualify with Capital Home Mortgage today!

Private Mortgage Insurance

One of the best things about conventional loans is that they offer greater flexibility in mortgage insurance. Mortgage insurance helps to protect the lender from a possible default. Because it is risk-based, a lower down payment can significantly increase your monthly mortgage payments due to a higher PMI.

Most government loan programs require mortgage insurance, some for the life of the loan. Conversely, conventional loans will require private mortgage insurance if your down payment is less than 20%. Moreover, you can request that your mortgage insurance be removed if you’ve already paid more than 20% of your home’s equity.

We strongly suggest putting up a 20% down payment to avoid paying mortgage insurance on your conventional home loan.

Is A Conventional Loan Your Best Choice?

Conventional home loans can be an excellent option for borrowers with good credit, a solid financial history, and enough money for a down payment.

However, other types of mortgages have their advantages as well. If you are purchasing your first home, loan programs are available to make the process easier and more affordable.

Capital Home Mortgage is a direct mortgage lender in Texas that provides home loans to many buyers, from first-time buyers to those looking into refinancing their homes. Contact us at 800-960-4565 if you want to learn more about conventional home loans, and we’ll gladly walk you through the application process.

Why Texas is Choosing Capital Home Mortgage
Close On Time with True Approval

Control of the Loan from the Application to Funding.

Great Texas Rates

Direct Mortgage Lender Providing Competitive Rates and Low Fees.

Texas Customer Service

7  Day a Week Support from Application to Final Mortgage Payment. 

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

Texas Conventional Purchase Loan

Conventional Purchase Loans are one of the most popular types of loans and a great choice for many home buyers. Conventional mortgages can be used to purchase any type of occupancy, while FHA, USDA, VA and Native American Loans are restricted to primary residence only. Conventional mortgages are great for borrowers that have higher credit scores and typically have easier qualifying.  

Conventional Mortgage Benefits

  • Freddie Mac and Fannie Mae Insured
  • Primary, Second or Investment Property
  • Single and Multi Family, Condo’s & Manufactured Homes
  • Mortgage Insurance Options
  • Lower Rates and Better Terms
  • Maximum Loan Amount – $715,000
  • Conforming High Balance – By Area

Conventional Mortgage Maximum Loan to Values

Primary Residence

  • Single Family – 95% First Time 97% 
  • Duplex – 85%
  • Tri / 4 Plex – 80%
  •  

Secondary Residence

  • Single Family – 90%
  • Duplex – N/A
  • Tri / 4 Plex – N/A
  •  

Investment Residence

  • Single Family – 85%
  • Duplex – 75%
  • Tri / 4 Plex – 75%

Conventional Refinance Lender

Conventional Purchase Loans are one of the most popular types of loans and a great choice for many home buyers. Conventional mortgages can be used to purchase any type of occupancy, while FHA, USDA, VA and Native American Loans are restricted to primary residence only. Conventional mortgages are great for borrowers that have higher credit scores and typically have easier qualifying.  

Conventional Mortgage Benefits

  • Freddie Mac and Fannie Mae Insured
  • Primary, Second or Investment Property
  • Single and Multi Family, Condo’s & Manufactured Homes
  • Mortgage Insurance Options
  • Lower Rates and Better Terms
  • Maximum Loan Amount – $715,000
  • Conforming High Balance – By Area

Conventional Mortgage Maximum Loan to Values

Primary Residence

  • Single Family – 95% First Time 97% 
  • Duplex – 85%
  • Tri / 4 Plex – 80%
  •  

Secondary Residence

  • Single Family – 90%
  • Duplex – N/A
  • Tri / 4 Plex – N/A
  •  

Investment Residence

  • Single Family – 85%
  • Duplex – 75%
  • Tri / 4 Plex – 75%

Texas Conventional Refinance Loan

Conventional Highlights

Conventional Refinance Loans are used for more refinances than any other type of mortgage loan.   This is due to Conventional loans allowing for all occupancy and property types and typically don’t require any mortgage insurance due to loan to value requirements. Conventional mortgages due require higher credit scores but offer better rates.  

  • Freddie Mac and Fannie Mae Insured
  • Primary, Second or Investment Property
  • Single, Multi-Family, Condo’s & Manufactured Homes
  • Rate and Term

Primary Residence

  • Single Family – 95% 
  • Duplex – 85%
  • Tri / 4 Plex – 80%

Secondary Residence

  • Single Family – 90% 
  • Duplex – N/A
  • Tri / 4 Plex – N/A

Investment Residence

  • Single Family – 85% 
  • Duplex – 75%
  • Tri / 4 Plex – 75%

Cash Out Refinance

Primary Residence

  • Single Family – 80% 
  • Duplex – 75%
  • Tri / 4 Plex – 75%

Secondary Residence

  • Single Family – 75% 
  • Duplex – N/A
  • Tri / 4 Plex – N/A

Investment Residence

  • Single Family – 75% 
  • Duplex – 70%
  • Tri / 4 Plex – 70%
Mortgage Conventional Refinance Lender

Conventional Highlights

Conventional Refinance Loans are used for more refinances than any other type of mortgage loan.   This is due to Conventional loans allowing for all occupancy and property types and typically don’t require any mortgage insurance due to loan to value requirements. Conventional mortgages due require higher credit scores but offer better rates.  

  • Freddie Mac and Fannie Mae Insured
  • Primary, Second or Investment Property
  • Single, Multi-Family, Condo’s & Manufactured Homes
  • Rate and Term

Primary Residence

  • Single Family – 95% 
  • Duplex – 85%
  • Tri / 4 Plex – 80%

Secondary Residence

  • Single Family – 90% 
  • Duplex – N/A
  • Tri / 4 Plex – N/A

Investment Residence

  • Single Family – 85% 
  • Duplex – 75%
  • Tri / 4 Plex – 75%

Cash Out Refinance

Primary Residence

  • Single Family – 80% 
  • Duplex – 75%
  • Tri / 4 Plex – 75%

Secondary Residence

  • Single Family – 75% 
  • Duplex – N/A
  • Tri / 4 Plex – N/A

Investment Residence

  • Single Family – 75% 
  • Duplex – 70%
  • Tri / 4 Plex – 70%

Texas Conventional Renovation Loan

  • Up to 97% LTV of “As-Completed”
  • Owner-occupied 1–4 unit Primary 
  • Owner-occupied 1–4 unit Condos 
  • 85% LTV on a 1-unit Investment 
  • 90% on a 1-unit Second Home
  • Credit Scores Down to 620
  • Luxury Renovations are Eligible
Renovation Freddie Mac Choice Home Lender
  • Up to 97% LTV of “As-Completed”
  • Owner-occupied 1–4 unit Primary 
  • Owner-occupied 1–4 unit Condos 
  • 85% LTV on a 1-unit Investment 
  • 90% on a 1-unit Second Home
  • Credit Scores Down to 620
  • Luxury Renovations are Eligible
Not Sure? Take a Look at Other Texas Mortgage Programs

Texas Mortgage Team

Conor Hayhurst

Manager
NMLS 743506

Damon Embler

Sr Loan Officer
NMLS 882260

chris erwin

Sr Loan Officer
NMLS 914064

Dale Gremillion

Manager
NMLS 210325

Texas Mortgage Company Reviews

Texas Cities

Houston Home Loans

San Antonio Home Loans

Dallas Home Loans

Austin Home Loans

Fort Worth Home Loans

El Paso Home Loans

Corpus Christi Home Loans

Laredo Home Loans

Lubbock Home Loans

Amarillo Home Loans

Brownsville Home Loans

Killeen Home Loans

Midland Home Loans

Waco Home Loans

Odessa Home Loans

Abilene Home Loans

College Station Home Loans

Beaumont Home Loans

Wichita Falls Home Loans

San Angelo Home Loans

San Marcos Home Loans

Galveston Home Loans

Tyler Home Loans

McAllen Home Loans

Stephenville Home Loans

Texarkana Home Loans

Round Rock Home Loans