Conventional Home Loans in Austin, TX
Steady income and decent credit? A conventional loan is often where we start. Call or text (512) 593-1336 to see what you could qualify for.
- From 3% down on certain programs
- Primary, second home or investment
- PMI can usually be removed
- 30- and 15-year fixed
No lender fees on agency loans (conventional, FHA, VA). Third-party costs may apply.
What Makes a Loan “Conventional”
A conventional mortgage is any home loan that is not insured or guaranteed by a government agency like FHA, VA or USDA. Most of them follow the rules set by Fannie Mae and Freddie Mac, which is why you will also hear them called conforming loans when they fall under the yearly loan limit.
Because no government insurance stands behind them, lenders lean more on your credit, income and down payment. In exchange you get flexibility: you can use them for a primary home, a second home or a rental, and the mortgage insurance does not have to last forever.
Who Usually Comes Out Ahead
- Buyers with solid credit, where conventional pricing and PMI tend to be friendlier than FHA.
- Anyone buying a second home or a rental, which FHA and VA do not allow.
- Buyers putting 20% or more down who want no mortgage insurance at all.
- People who want a predictable payment through one of our fixed-rate mortgage options.
Conventional, FHA and VA Side by Side
FHA can be more forgiving of lower scores, but its mortgage insurance often lasts much longer. VA offers zero down for those who qualify, yet it is limited to eligible service members, veterans and some surviving spouses. Conventional sits in the middle: a little stricter up front, often cheaper over time for borrowers with good credit. We run all three when you are eligible so you can compare the real monthly cost and cash to close.
How PMI Works
If you put less than 20% down, the lender will require private mortgage insurance. It is priced mostly on your credit score and down payment, and it is added to your monthly payment. The good news is that it is not permanent. You can generally ask to have it removed once your balance reaches 80% of the home’s original value, and it is scheduled to drop off automatically at 78% as long as you are current on payments.
Getting Started With Us
- Call or text (512) 593-1336. Tell us what you want to buy and roughly what you’d like to spend.
- Share your documents. Pay stubs, W-2s and bank statements are usually enough to begin.
- Review options. We compare lenders and walk you through rate, APR, PMI and cash to close.
- Shop with confidence. Your pre-approval letter lets your agent write strong offers.
Conventional Loan Questions
What credit score do conventional loans need?
Most conventional programs look for a score of at least 620, and better scores typically earn better pricing and lower PMI.
Can I use a conventional loan for a rental property?
Yes. Conventional financing can be used for investment properties, though the down payment and pricing are different from a primary residence.
Is 3% down really possible?
For certain programs, yes. Some 3% down options have income limits or require at least one first-time buyer.
When does PMI go away?
You can generally request removal at 80% of the original value and it ends automatically at 78% if your payments are current.
What is the 2026 conforming loan limit?
For 2026, FHFA’s baseline conforming limit for a one-unit home is $832,750 in most U.S. counties, with higher limits in designated high-cost areas. A loan above your county’s limit is a jumbo loan. We confirm your county’s figure when pricing. Source: FHFA.
How much debt can I have for a conventional loan?
Lenders compare your monthly debts, including the new house payment, with your gross monthly income. Many conventional loans allow a debt-to-income ratio up to about 45%, and some approvals go up to 50% with strong credit or reserves. Paying down a card or car loan before applying can improve your numbers.
Let’s Price Out Your Conventional Loan
We’ll show you conventional quotes from multiple lenders, each with the APR listed right beside the rate. CapFi Lending is an Austin broker working with more than 50 wholesale lenders across Travis, Williamson, Hays and Bexar counties, and Dustin Edwards brings 22 years of experience. Our reviews: 4.9★ on Google (79) · 5.0★ on Zillow (16) · 100% recommend on Facebook (42).
Call or text (512) 593-1336 to start a free pre-approval.
Compare sample Austin mortgage rates with APR. Rather talk it over first? Call or text (512) 593-1336, Monday through Saturday from 9 to 7.
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