Conventional Home Loans in Austin, TX

Understanding a Conventional Loan for Austin Buyers

A conventional loan in Austin, TX is a mortgage that isn’t backed by a government agency like FHA or VA. It’s the most common way people buy homes across Travis, Williamson, Hays, and Bexar counties, and it works for a primary home, a second home, or an investment property. Because we’re a broker, we shop your conventional loan across multiple wholesale lenders to find the best fit for you, not just one bank’s menu.

Want a payment that never changes? See our fixed-rate mortgage options.

Key Takeaways

• The go-to loan for buyers with steady income and good credit
• Low down payment options for first-time buyers, plus flexible choices if you put more down
• Mortgage insurance can come off once you build enough equity
• Works for primary homes, second homes, and investment properties
• A local broker compares lenders for you, so you don’t have to

Who Conventional Loans Help Most in Austin

Conventional financing is often a great fit for:

• First-time buyers with good credit who want low down payment options without lifelong mortgage insurance
• Move-up buyers selling a starter home in Pflugerville or Round Rock and putting equity toward something bigger
• Tech and healthcare professionals near the Domain or the Dell Medical District with steady salaried or bonus income
• Second-home and investment buyers looking at Lake Travis, San Marcos, or rental properties in San Antonio
• Homeowners refinancing to drop FHA mortgage insurance or take cash out for a remodel

Not sure it’s the right fit? That’s what the first call is for. We’ll lay out your options side by side.

Conventional vs. FHA vs. VA

• Conventional vs. FHA: FHA is more forgiving on credit and debt, which makes it a strong option if your credit is still building. With good credit, conventional often costs less over time because its mortgage insurance can go away, while FHA’s usually sticks around. Conventional also works for second homes and investment properties; FHA doesn’t.
• Conventional vs. VA: If you’re an eligible veteran or service member, VA is hard to beat, with no down payment required and no monthly mortgage insurance. Conventional makes sense for veterans buying a second home or rental, or saving VA eligibility for later.
• The bottom line: There’s no one best loan, only the best loan for you. We run all three for your situation so you can pick with confidence.

PMI, Explained Simply

PMI (private mortgage insurance) is an extra monthly cost added when you put less than a typical full down payment on a conventional loan. It protects the lender, not you, but it’s what makes low down payment conventional loans possible. The good news: unlike FHA insurance, PMI isn’t forever. As you pay down your loan and your home gains value, you can request to have it removed, and it drops off automatically down the road. Strong credit can also mean lower PMI, and we’ll show you options to reduce or avoid it.

How to Get Started

1. Call or text (512) 593-1336. Tell us what you’re buying and your timeline.
2. Get your free pre-approval. We review income, credit, and savings and give you a pre-approval letter you can shop with.
3. We shop the lenders. As a broker, we compare conventional options from multiple lenders and walk you through them.
4. Make your offer. Your pre-approval shows sellers you’re serious, which matters in a competitive Austin market.
5. Close on your home. We handle appraisal, underwriting, and title coordination and keep you updated every step.

Common Questions About Conventional Home Loans

What credit do I need for a conventional loan?
Conventional loans reward good credit, and stronger credit usually means better pricing and lower PMI. If your credit needs work, we’ll tell you exactly what to improve, or show you FHA as a backup.

How much do I need to put down?
Less than most people think. There are low down payment options for first-time and repeat buyers, and putting more down can lower your monthly cost and remove PMI. We’ll show you a few scenarios so you can choose.

Can I use a conventional loan for a rental or second home?
Yes. That’s one of its biggest advantages over FHA. Conventional financing works for primary homes, second homes, and investment properties.

Can I use gift money for my down payment?
In many cases, yes. Family gifts are commonly allowed. We’ll tell you what paperwork you need so it goes smoothly in underwriting.

I’m self-employed. Can I still get a conventional loan?
Often, yes, with tax returns showing steady income. If your returns don’t reflect what you really earn, we also offer bank statement loans. Call and we’ll figure out which fits.

Ready to Start Your Conventional Loan?

We’re here to help you understand your options, compare lenders, and get you into your next home with a loan that fits. CapFi Lending is a locally owned Austin mortgage broker with 22 years of experience and a 4.9★ rating from 79 Google reviews, serving buyers across Travis, Williamson, Hays, and Bexar counties. Call or text (512) 593-1336 or tap Request A Quote to get your free pre-approval started today.

Have a question about your situation? Call or text (512) 593-1336, Mon–Sat 9–7, and talk with a local broker who’s been helping Central Texas buyers for 22 years.