Conventional loans are the workhorse of the mortgage world: homes, second homes, and rentals, with mortgage insurance that can come off. Standard doesn't mean simple, though. The details decide what it costs you. Here's how it works and what to send me. I'm in Fort Worth, and most of my clients are around DFW.
I always start with a soft pull, so no hard credit ding.
A conventional loan isn't insured or guaranteed by the government the way FHA and VA loans are. Most conventional loans are conforming loans, built to the rules in the Fannie Mae and Freddie Mac guides, which is why lenders can sell them and keep lending.
Conforming loans have a maximum loan amount that FHFA sets every year, by county. Check the current number on FHFA's conforming loan limit page. Above it, you're in jumbo loan territory, which I do too.
Conventional loans work for a primary home, a second home, or an investment property, from one to four units. The rules are tighter on second homes and rentals. I'm an investor myself, so I've been on your side of that table.
Put less down and you'll usually have private mortgage insurance, or PMI. Unlike FHA's premium, federal law lets you ask to cancel PMI once you've paid the loan down enough, and it generally comes off automatically later. The CFPB explains when PMI can come off.
Conventional pricing leans hard on your credit and your debt. A stronger file usually means a better deal. A file that's still healing may do better with FHA, so I price both.
Gifts from family can generally be used, with the paperwork done right. My mom is still a teacher, so I've got a heart for teachers, and I'm approved with most state and local down payment assistance programs, including ones for teachers. Eligibility depends on the program. Ask me.
Conventional loans typically have the longest waits after a bankruptcy or foreclosure. See the typical waiting periods, and the non-QM options that can work sooner.
Conventional loans usually qualify you on your tax returns. If your write-offs make your income look smaller than it is, I get it, and bank statement loans may be the better fit.
Conventional renovation loans roll the cost of the work into the mortgage, on a purchase or a refinance. Fannie Mae's is called HomeStyle Renovation and Freddie Mac's is CHOICERenovation. More in my renovation loan guide. Conventional loans also cover some manufactured homes titled as real property.
Conventional works for a rate-and-term refinance, and for getting out of an FHA loan to drop the FHA premium once you have the equity and credit for it. Cash-out on your homestead in Texas has its own rules; see the Texas cash-out refinance guide. A cash-out on a rental doesn't follow those homestead rules.
Whatever the reason, a refinance has to be worth what it costs. If it doesn't pencil out, I'll say so.
Send the short form, call, or email. I'll pull credit, run conventional and FHA side by side, and show you the real difference. Teacher, first-time buyer, self-employed, or buying your third rental, tell me the story.
I lend in Texas, Oklahoma, California, Colorado, Montana, Florida and Georgia, and I can help in all the other states too.
I always start with a soft pull, so no hard credit ding.
A mortgage that isn't insured or guaranteed by the government. Most are conforming loans, built to Fannie Mae or Freddie Mac rules and under the conforming loan limit FHFA sets each year. Above that limit is a jumbo loan.
Often, if you're putting less down. It's private mortgage insurance, or PMI. Unlike FHA's premium, federal law lets you ask to cancel PMI once you've paid the loan down enough, and it generally comes off automatically later. The CFPB explains the rules.
Yes. Conventional loans can be used for a primary home, a second home, or an investment property, one to four units. The rules are tighter on second homes and rentals.
Depends on your credit, your debt, and how much you have saved. FHA is more forgiving on credit. Conventional can cost less for stronger files, and the PMI can come off. I usually price both and show you.
FHFA sets conforming loan limits every year, by county. Check the current limit on FHFA's conforming loan limit page, or ask me. Over the limit, I do jumbo loans too.
I always start with a soft pull, so no hard credit ding.
General information, not a commitment to lend. Subject to qualification and program guidelines. Not all applicants will qualify.
More answers on the FAQ page, or see Fort Worth home loans. Or head back home.