Conventional Home Loans
Our Conventional Home Loans offer a versatile and cost-effective solution for homebuyers looking to finance their new home. With competitive interest rates, flexible terms, and straightforward qualification requirements, these loans are ideal for buyers with strong credit profiles. Whether you're purchasing your first home or your dream home, our conventional loans provide the stability and reliability you need to make your homeownership goals a reality.
Benefits Of A Conventional Loan
Lower Overall Costs
Conventional loans typically have lower interest rates and fees compared to government-backed loans, especially for borrowers with good credit. This can result in lower monthly payments and less money spent over the life of the loan.
Higher Loan Limits
Conventional loans offer higher loan limits than some government-backed loans, allowing borrowers to finance more expensive properties without needing a jumbo loan.
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Flexibility
Conventional loans offer more flexibility in terms of loan amounts, terms, and property types. They can be used for primary residences, second homes, and investment properties, providing borrowers with more options
Conventional Loan Overview
Conventional loans are a popular choice for homebuyers who have good credit and a stable financial history. These loans are not backed by the government, allowing for greater flexibility in terms and conditions. With higher loan limits and the possibility of avoiding private mortgage insurance (PMI) with a 20% down payment, conventional loans can offer significant benefits to qualified borrowers.
● Credit Score Requirement: Minimum credit score of 620● Max Loan-to-Value (LTV): Up to 97% for first-time homebuyers; up to 95% for others.● Down Payment: As low as 3% for eligible buyers.● PMI: Required if down payment is less than 20%, but can be removed once LTV reaches 80%.● Loan Limits: Follows conforming loan limits, which vary by county
We Lend In Texas
At Town Square Home Mortgage, we are proud to serve homebuyers across the great state of Texas. From bustling urban centers to charming rural communities, our conventional loan products are available statewide. Whether you're buying in Austin, Dallas, Houston, or any other part of Texas, our team is here to help you navigate the home buying process with ease and confidence. We understand the unique aspects of the Texas real estate market and are committed to providing the local expertise and personalized service you need.
FAQ
What is the minimum down payment required for a conventional loan?
The minimum down payment for a conventional loan is typically 3% for first-time homebuyers and 5% for other borrowers.
Can I avoid private mortgage insurance (PMI) with a conventional loan?
Yes, if you make a down payment of 20% or more, you can avoid PMI. Additionally, PMI can be removed once your loan-to-value (LTV) ratio reaches 80%.
What credit score do I need to qualify for a conventional loan?
A minimum credit score of 620 is generally required to qualify for a conventional loan. However, higher scores may result in better interest rates and terms.
Are conventional loans available statewide in Texas?
Yes, our conventional loans are available throughout Texas, covering both urban and rural areas, ensuring you can find the right loan no matter where you’re buying.