Program highlights
- Owner occupied
- Minimum score of 600 when LTV is above 80%
- No minimum score when LTV is below 80%
- No-FICO options available
- Up to 97% LTV / 105% CLTV
- DACA loans
- High balance, temporary buydowns, and escrow holdbacks available
What is a conventional loan?
A conventional loan is a mortgage that is not insured or guaranteed by a government agency like FHA, VA, or USDA. Most conventional loans follow guidelines set by Fannie Mae and Freddie Mac, which is why you will also hear them called conforming loans. They are the most widely used home loan in the country, and for many buyers they are the most cost-effective option over the life of the loan.
How it works
A conventional loan lets you finance up to 97% of the purchase price, which means a qualified buyer can put as little as 3% down. When a down payment assistance second lien is added, the combined loan to value can reach 105%, so the assistance can cover the down payment and part of the closing costs.
If you put less than 20% down, the loan typically carries private mortgage insurance (PMI). Unlike FHA mortgage insurance, PMI on a conventional loan can usually be removed once you build enough equity, either through payments or appreciation. That single difference is why many buyers with good credit choose conventional over FHA.
Credit requirements depend on how much you put down:
- LTV above 80% (less than 20% down): minimum credit score of 600.
- LTV below 80% (more than 20% down): no minimum credit score.
- No established credit: no-FICO options are available, using alternative credit history.
Conventional loans also come in high balance versions for higher-cost counties, and they work with temporary buydowns, where the seller or builder pays to reduce your payment for the first year or two.
Who it fits
Conventional loans fit a wide range of buyers. They are a strong choice when your credit is solid, your income is documented on W-2s or tax returns, and you want the flexibility to drop mortgage insurance later. They also fit buyers with larger down payments who want no mortgage insurance at all. Because we offer DACA loans and no-FICO options on conventional, this program also reaches borrowers who are often told no elsewhere.
What you need to apply
Most conventional files start with the same short list:
- Recent pay stubs covering about 30 days
- W-2s or tax returns from the past two years
- Two months of bank statements for your down payment and reserves
- A valid government-issued ID
- Permission to review your credit, or alternative credit documents for a no-FICO file
Self-employed borrowers typically provide two years of personal and business tax returns. We send a complete checklist once you start, so you are not guessing.
How we help in Austin
Central Texas has a mix of price points, from starter homes in Pflugerville and Kyle to higher-priced homes in central Austin where high balance limits can come into play. We compare conventional against FHA side by side, including how mortgage insurance plays out over time, so you pick the loan that actually costs less for your situation. You can apply in about 10 minutes, and we typically issue a pre-approval letter within 24 hours. We are licensed in 7 states, so the same team can help if you are moving to or from Austin.
Additional terms and conditions apply. Not all loan types are compatible with this product. Subject to underwriting conditions. Not a promise to make a loan. All borrowers must qualify.
Conventional Loans: common questions
What credit score do I need for a conventional loan?
With less than 20% down (LTV above 80%), our conventional minimum is a 600 credit score. With more than 20% down (LTV below 80%), there is no minimum score. If you have no traditional credit at all, we also offer no-FICO conventional options that use alternative credit history. Your score still affects pricing and mortgage insurance cost, so we review it with you up front.
How much do I need to put down on a conventional loan?
Conventional loans go up to 97% loan to value, so a qualified buyer can put as little as 3% down. With a down payment assistance second lien, the combined loan to value can reach 105%, which can cover the down payment and part of closing costs. Putting 20% or more down typically removes the need for private mortgage insurance.
Can I remove mortgage insurance on a conventional loan?
Usually, yes. Private mortgage insurance on a conventional loan can typically be removed once you reach enough equity, through your regular payments, extra principal, or rising home value. Rules on timing and appraisals vary by investor. This is one of the main reasons buyers with good credit choose conventional over FHA, where mortgage insurance often lasts much longer.
Is conventional or FHA better for me?
It depends on your credit, down payment, and how long you plan to keep the loan. FHA is often more forgiving on credit, while conventional mortgage insurance can typically be removed later. We run both options side by side with your real numbers, including closing costs and mortgage insurance, and show you which one costs less over the time you expect to own the home.
Do you offer conventional loans for DACA recipients?
Yes. Our 2026 product guide includes conventional DACA loans for owner-occupied homes. You will typically need valid employment authorization documents, a documented work history, and income that meets standard guidelines. We also have Non-QM DACA options if a conventional loan is not the right fit. Call us and we can walk through what documents you have and which path makes sense.