San Antonio Conventional Home Loans

Getting your dream house is one of life’s most significant achievements. Make it happen with a conventional home loan from Capital Home Mortgage. We go above and beyond to provide a pleasant home-buying experience, especially since it is such an important milestone.

Capital Home Mortgage offers conventional home loans and other types of loans to fit any home buyer’s needs and budget. Our home loan experts can walk you through your options based on your requirements and situation. 

What is a Conventional Loan?

Any home loan not provided or guaranteed by a government agency is referred to as a conventional mortgage or conventional loan. Private lenders offer conventional mortgages, including banks, credit unions, and mortgage firms.

Conventional Loan Requirements

A conventional home loan is a mortgage product that doesn’t have government backing. Since they do not have government backing, conventional loans have stricter requirements. 

• Credit Score Requirements

Your credit score can save you a lot of time before applying for a home loan. As a potential borrower, your credit score must be at least 620 to qualify for a conventional loan. However, having that score doesn’t guarantee you will be approved. If your credit score is below 620, checking out FHA loans is probably best, and non-qualified mortgages are probably best. 

• Income and Employment

Lenders are particular about the borrower’s ability to pay the conventional mortgage because it doesn’t have a guarantee from the government. You must be able to present the essential documents, such as:

• Thirty days’ worth of pay stubs;

• Previous two years of W-2 statements;

• Last two months’ bank statements and all other assets, including retirement accounts, etc.

The lender may ask for additional documentation to properly assess your loan and give you a prequalification or preapproval.

• Down Payment

The ideal down payment for a conventional loan is 20% to skip private mortgage insurance (PMI). PMI can make your monthly amortizations a bit more expensive. Hence, if you can cash out a bit more to reach the 20% mark, you can save more money in the future. 

However, the down payment can go as low as 3% if you have stellar credit scores and a good history of honoring debts. Otherwise, a typical down payment requirement for a conventional loan is 5% of the purchase price.

Conforming Loan Limits

The baseline limit for the low-cost area for 2024 is $766,550, while $1,149,825 for high-cost areas. These limits apply to a single-family home. Reach out to our experts to know the limits for larger homes in the San Antonio area. 

Get a Conventional Home Loan in San Antonio

You’re one step away from your dream home. Contact our mortgage experts to discuss your Conventional home loan in San Antonio today. Call (210) 634-1255 to get started with a no-obligation quote.