Conventional Home Loans In Texas

Conventional loans are mortgage loans offered by non-government sponsored lenders. These loans can be conforming or non-conforming and have terms that adhere to the guidelines established by Fannie Mae and Freddie Mac. These two stockholder-owned corporations buy mortgage loans that meet their criteria from lending institutions, package the mortgages into securities, and sell these securities to investors. This process ensures that Fannie Mae and Freddie Mac, similar to Ginnie Mae, maintain a steady flow of affordable funds for home financing, thus enhancing the availability of mortgage credit for homeowners.

**Types of Conventional Loans:**

- Fixed Rate Loans

- Adjustable Rate Loans (ARMs)

- Combination (Hybrid) Loans

- Balloon Mortgages and Pledge Asset Loans

- Jumbo / Construction Loans

- Reverse Mortgage

**What Are the Advantages of Conventional Loan Financing?**

There are numerous benefits of conventional financing, which include:

- You can purchase a primary residence, a second home, or a rental property with most conventional loans, unlike government loans that have more restrictions.

- You have the flexibility of fixed rates, adjustable rates (ARMs), and loan-term options ranging from 10 to 30 years.

- Down payments can be as low as 3% with our traditional conventional options, offering a 97% loan-to-value ratio.

- If you make a down payment of 20% or more, you pay no monthly mortgage insurance.

- Mortgage insurance can be canceled once your home equity reaches 20% of the original appraised value.

Fannie Mae and Freddie Mac set the maximum loan amount, borrower credit and income requirements, down payment, and eligible properties. They announce new loan limits each year.

**10 Year and 15 Year Loan Options**

These loan terms are ideal for those looking to pay off their mortgage quickly, as they accumulate equity rapidly but come with higher monthly payments. A significant advantage of these terms is the lower interest rate, which is the most competitive for any mortgage. If you aim to own your home and settle the debt swiftly, a 10 year or 15 year mortgage is the best choice.

**20 Year, 25 Year, and 30 Year Loan Options**

These loans tend to have a slightly higher interest rate due to the length of the among of years. The main advantage of these loan options compared to the 10 year and 15 year loans is a lower payment. You can always pay more towards each payment to pay off at a quicker pace with no pre-payment penalties. If you plan to be in your home long-term or want a lower payment these options are a great solution.

Texas Premier Mortgage will help educate you on the specific loans you qualify for and if a conventional loan is right for you.  Conventional products include Texas Purchase, Texas Refinance, and Texas Home Equity products.

The loan limit for conventional loans is $806,500.  Loans higher than this loan amount will qualify under our Jumbo product guidelines. Texas Premier Mortgage is a qualified conventional loan lender servicing clients in The Woodlands, Spring, Conroe, Houston and surrounding areas as well as the entire state of Texas.

Non-arms length transactions are also allowable for these loan products. If you're buying or selling a home with a relative we will help ensure all the proper qualifications are met.