Dallas Conventional Home Loans

If you plan to buy a home, you’ve likely considered your financing options. One mortgage loan you will surely come across is a Conventional home loan. This type of loan is ideal if you’re looking to finance a home purchase but are not eligible for a government-backed mortgage. 

Conventional home loans are mortgages without government backing. Different kinds are available, and it’s up to your lender to ensure you get the right one for your home purchase needs. 

If you’re considering getting a Conventional home loan in Dallas, Capital Home Mortgage is the lender of choice. We are a leading mortgage provider here to help you every step of the way. We fund all mortgages as direct lenders, which means competitive rates and more options for qualified customers. Learn more about our conventional home loan program below!

Conventional Loan Requirements

Lenders are more stringent about eligibility for conventional loans since there’s no government backing. That makes such a deal slightly risky, but it doesn’t mean you won’t be approved! Even if requirements are rigidly enforced, the quality of submitted documents can often dictate whether or not someone gets their loan.

A conventional home loan’s most critical requirement is demonstrating your ability to repay the loan. This is measured through your income and other assets in your name. While we are lenient in accepting either employed or self-employed borrowers, you should submit the following documents:

• last two years of W-2 statements

• most recent 30 days of pay stubs

• previous two years 1099s

• for self-employed individuals: 2 years of personal and business tax returns plus a year-to-date profit and loss statement

• if applicable, a copy of the final divorce decree and social security benefits letter

Additional documentation or proof may be requested if you have other sources of income.

Conventional home loans require a satisfactory credit history. Having a score of 620 is not a guarantee of approval. Borrowers with a score below 620 are encouraged to check FHA loans.

Another requirement for a conventional home loan to get approved is a minimum down payment of 3 – 5%. If you put less than 20% down, you have to carry mortgage insurance on your loan.

Conforming Loan Limits

For a conventional home loan to be “conforming,” the loan’s amount must meet or be below the maximum limit set by government-sponsored entities Fannie Mae and Freddie Mac. These limits ensure that homeownership opportunities are widely available while stabilizing the housing market.

The standard conforming loan limit is $766,550 for a one-unit property. It varies, though, in high-cost and low-cost areas. You may contact our Dallas home loan experts to know the loan limit in the county where the property is located, as the limits change annually.

Apply for a Conventional Home Loan in Dallas

Capital Home Mortgage is here to help you finance your dream home with a Dallas Conventional home loan. Call us at (214) 372-0015 to speak with our professional mortgage specialists.