Conventional Loans Houston TX — Traditional Financing, Competitive Rates
Conventional loans offer competitive rates and the ability to eliminate PMI.
3-20%
Down
620
Min. Credit
$806K
2026 Limit
Conventional Loan Benefits
Why choose a conventional loan?
Competitive Interest Rates
Often lower rates than FHA for qualified buyers with strong credit profiles.
No Upfront Mortgage Insurance
With 20% down, you avoid PMI entirely — saving hundreds per month.
Removable PMI
Unlike FHA, PMI can be removed once you reach 80% loan-to-value.
Flexible Property Types
Use for primary residence, vacation home, or investment property.
Higher Loan Limits
2026 conforming limit of $832,750 — higher than FHA limits.
Flexible Terms
Choose 10, 15, 20, or 30-year terms to fit your financial goals.
Conventional Loan Requirements
Conventional loans have standard qualification requirements.
- Minimum credit score of 620
- 3-20% down payment (20% avoids PMI)
- Stable employment history (2 years)
- Debt-to-income ratio within guidelines
- Proof of income and assets
- Property appraisal required
Not Sure If You Qualify?
Daisy can review your situation and find the best option for you — FHA, conventional, or another program.
Free ConsultationConventional vs. FHA Loan
Which is right for you? Here's the comparison.
| Feature | Conventional Loan | FHA Loan |
|---|---|---|
| Minimum Down Payment | 3-20% | 3.5% |
| Minimum Credit Score | 620+ | 580 (500 with 10% down) |
| Mortgage Insurance | Removable at 80% LTV | Required for life of loan |
| Property Types | Primary, Secondary, Investment | Primary residence only |
| Best For | Strong credit, larger down payment | First-time buyers, lower credit |
When Does Conventional Make Sense?
Strong Credit Score (680+)
Better rates and terms with higher credit scores.
Larger Down Payment Available
20% down eliminates PMI and reduces monthly payment.
Investment or Second Home
FHA is limited to primary residence — conventional is not.
Want PMI to Go Away
Conventional PMI drops off automatically at 78% LTV.
Conventional Loan FAQs
Ready to Explore Your Conventional Option?
Daisy will help you determine if conventional is the best fit for you.
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