How much do I really need to put down?

Some conventional programs allow 3 percent down for first-time buyers, and 5 percent is common for others. You do not need 20 percent. Putting down less means you pay mortgage insurance until you build enough equity, so we show you both paths.

When does PMI come off?

You can ask to remove it once your balance reaches 80 percent of the original value, if your payment record is clean. It drops off on its own at 78 percent. Extra payments or a rise in value can get you there sooner.

Is conventional better than FHA?

It depends on your credit and how long you will keep the loan. FHA can be easier to qualify for, but its mortgage insurance often stays for the life of the loan. We price both and show you the cost over time, then you decide.

Is there a limit on how much I can borrow?

Conforming loans have a limit set each year. Above it, you need a jumbo loan with different rules. Most purchases around Manor, Pflugerville and Hutto fall under the limit, and we check yours on the first call.

Who will I be working with?

You work with a loan officer who has 11 years in the mortgage industry and has held an NMLS license for the last 10 of them. The same person handles your file from the first call to closing.

ServicesConventional Loans

Conventional Loans in Manor

A conventional loan is the standard home loan most buyers use. We lay out the down payment, rate, mortgage insurance and closing costs side by side, so you can see what the loan costs you now and what it costs over the years you keep it.

Start a loan application at (512) 956-7745

Loan officer at a wood conference table points to a printed payment breakdown while a couple seated across from her reviews it, with a document stack and pens on the table

What a conventional loan is and who it fits

A conventional loan is not backed by a government agency. Most follow the rules set by Fannie Mae and Freddie Mac. That means firmer credit standards than an FHA loan, but often a lower total cost for borrowers who qualify.

It tends to fit people with steady income, credit in decent shape and some savings for the down payment. It works for a first house, a move up, a second home or a rental property. It is also the loan most people use to refinance.

The cheapest loan on closing day is not always the cheapest loan. A slightly lower rate can be worth paying for if you plan to stay ten years. If you might sell in four, it often is not. We run both versions so you pick with the numbers in front of you.

What we handle on a conventional loan

Pre-qualification and pre-approval

We start with a pre-qualification so you know your range. Then we verify income and credit for a pre-approval letter you can hand a seller.

Down payment options compared

Some conventional programs allow as little as 3 percent down. We show what 3, 5, 10 and 20 percent down do to your monthly payment and to the interest you pay over the loan.

Rate and points worked out

We show what buying down the rate costs at closing and how many months it takes to earn that money back. If you will not stay past the break-even point, we tell you.

A plan for mortgage insurance

With less than 20 percent down you pay private mortgage insurance. Unlike FHA, it comes off. We show you about when, and what equity you need to ask for removal.

Fixed or adjustable terms

Thirty-year and fifteen-year fixed loans are the common picks, and adjustable rates are an option. We compare total interest, not just the payment.

Steady contact through closing

Your loan officer stays on the file from application to closing and calls you when the appraisal, underwriting or title needs something.

Loan officer points to a spreadsheet on a laptop while a borrower in a green polo looks on at a wood office table with a calculator, pen, printed chart and keys

Signs a conventional loan is the right call

Your credit score is 620 or higher: That is the usual floor. Higher scores get better pricing, and the jump in rate between tiers can be real money over thirty years.
You have some savings to put down: Even 5 percent down makes a conventional loan worth pricing out. With 20 percent you skip mortgage insurance completely.
You plan to stay a while: Because PMI drops off as you build equity, a conventional loan often beats an FHA loan the longer you keep it. We can show you the year the two cross.
You are buying a rental or second home: Government-backed loans are mostly for the house you live in. Conventional loans also cover investment and vacation property.
You want to refinance out of FHA: If your equity has grown, moving to a conventional loan can end the FHA mortgage insurance you are paying every month.

How the loan moves from first call to closing

1
A phone call to start
We talk about income, debts, savings and what you want to buy. You get a rough range and a list of documents. You can meet at our office or by phone and video.
2
Application and pre-approval
You send pay stubs, W-2s or tax returns, and bank statements. We pull credit and issue a pre-approval letter so your offer carries weight.
3
Pricing the loan side by side
Once you have a contract, we lock a rate. Before that, we show two or three options with the cost at closing and the cost over five and ten years.
4
Appraisal and underwriting
The appraiser values the property and the underwriter checks the file. If they ask for a letter or a missing statement, we tell you exactly what and why.
5
Closing
You get your Closing Disclosure at least three business days ahead. We go over it line by line with you, then you sign at the title company.

What moves the cost of a conventional loan

There is no single price for a conventional loan. Your rate and fees depend on the borrower, the property and the choices you make at closing. We show each piece so nothing new shows up on the final paperwork.

Credit score: Pricing is set in score bands. Moving up one band before you apply can lower the rate for the whole life of the loan.
Down payment and loan-to-value: More down means a lower risk price and less or no PMI. We show where the savings level off so you do not drain your cash reserve.
Points and lender credits: You can pay more up front for a lower rate or take a credit toward closing for a higher one. Which wins depends on how long you keep the loan.
Property type and use: A house you live in prices better than a condo, a rental or a second home. Multi-unit property has its own rules too.
Taxes and insurance in escrow: Property taxes in Texas are a large part of the monthly payment. We build them in from the start so the payment you plan for is the payment you get.

Conventional loan questions

How much do I really need to put down?: Some conventional programs allow 3 percent down for first-time buyers, and 5 percent is common for others. You do not need 20 percent. Putting down less means you pay mortgage insurance until you build enough equity, so we show you both paths.
When does PMI come off?: You can ask to remove it once your balance reaches 80 percent of the original value, if your payment record is clean. It drops off on its own at 78 percent. Extra payments or a rise in value can get you there sooner.
Is conventional better than FHA?: It depends on your credit and how long you will keep the loan. FHA can be easier to qualify for, but its mortgage insurance often stays for the life of the loan. We price both and show you the cost over time, then you decide.
Is there a limit on how much I can borrow?: Conforming loans have a limit set each year. Above it, you need a jumbo loan with different rules. Most purchases around Manor, Pflugerville and Hutto fall under the limit, and we check yours on the first call.
Who will I be working with?: You work with a loan officer who has 11 years in the mortgage industry and has held an NMLS license for the last 10 of them. The same person handles your file from the first call to closing.

Loan officer hands house keys to a smiling couple on the driveway of a single-story limestone home with a gray garage door and a blank red yard sign

See what a conventional loan costs you over the years

Call us with your income, savings and the price range you have in mind. We will price a conventional loan both ways and show you which holds up longer.

Get conventional rate quotes at (512) 956-7745