The workhorse. And the one I shop the hardest.
If you are comparing conventional loans in Texas, this is the workhorse: Fannie/Freddie rules, conforming limits, property-type flexibility, and pricing that can vary more than people realize.
A conventional loan is a mortgage backed by Fannie Mae or Freddie Mac rather than a government agency, and in Texas it stays "conforming" when the amount fits within the annual Fannie/Freddie loan limit. Across Texas and the Austin area, conventional financing covers primary homes, second homes, and investment properties. If the loan amount rises above the conforming line, the file moves into jumbo territory.
Conventional loans in Texas: overview
Conventional loans in Texas are the backbone of mortgage lending. Backed by Fannie Mae and Freddie Mac, they cover more scenarios than any other product. Primary residence, second home, investment property. Agency underwriting with mortgage insurance that can go away once you build enough equity.
Conventional pricing is a grid. Your credit score, your down payment, your property type, your occupancy. Each variable adjusts the price. Two borrowers with different credit profiles on the same loan can see meaningfully different pricing. Over the life of the loan, that adds up.
The reason a broker matters on conventional more than almost any other product is that each lender eats those pricing adjustments differently. Same borrower, same scenario, meaningfully different offers. I run it across my network and bring you the pricing that fits your file.
Key Details
How I Handle This
Your file goes to multiple lenders. Not figuratively. I literally price it across my network and show you the range. On conventional loans, the spread between offers on the same file can be significant. Most borrowers never see that comparison because they only talk to one lender.
If you're close to a pricing band that could improve your quote, I tell you before you lock. Sometimes a small paydown on a credit card changes how the file prices.
Questions I Get
Are conventional loans in Texas the same as conforming loans?
Not always. Conventional is the broader category. A conventional loan is conforming when it fits within the Fannie Mae and Freddie Mac loan limit, which is $832,750 for a one-unit Texas property in 2026. Above that line, the loan is still conventional, but it becomes jumbo.
Do I need a big down payment?
No. There are conventional programs with very low minimums, especially for first-time buyers. I'll show you what's available.
How does the mortgage insurance work?
You pay it monthly until you build enough equity. Then you can request cancellation. It also drops automatically at a certain point. Unlike FHA, it doesn't follow you for the life of the loan.
Is conventional always better than FHA?
Below a certain credit score, FHA is actually cheaper because conventional's pricing adjustments get steep. I run both and show you the winner. It's not always the one you'd guess.
Can I use this for a rental property?
Yes. Conventional is the only standard option for second homes and investment properties. Government loans don't go there.
What are the conventional loan limits in Texas for 2026?
The conforming loan limit applies statewide in Texas, so the same baseline cap covers Austin and every other county for a one-unit home. A conventional loan that fits under that cap is 'conforming'; anything above it is a jumbo loan. I keep the current figures on my Texas conforming loan limits page and confirm the exact number for your county before we structure anything.
What are the conventional loan requirements in Texas?
In broad terms, you'll need verifiable income, an acceptable debt-to-income ratio, established credit, documented funds for your down payment and closing costs, and a property that appraises. Fannie Mae and Freddie Mac set the underlying rules, and they apply the same way across Texas. I review your full file up front so there are no surprises before you go under contract.
Is there a conventional loan calculator for Texas payments?
A calculator can give you a rough monthly estimate, but it can't price the credit, down payment, property type, and occupancy adjustments that actually move a conventional quote in Texas. Rather than rely on a generic Texas conventional loan calculator, send me your scenario and I'll compare it across my lender network so you're looking at file-specific options.
FHA vs conventional loans in Texas, which one should I choose?
It depends on your credit and how much you're putting down. Conventional often wins on long-run cost because the mortgage insurance can be cancelled, while FHA can be the better fit when credit is still building. I run both side by side for your Texas file and show you which one actually comes out ahead.
Can I refinance into a conventional loan in Texas?
Yes. Many Texas homeowners refinance into a conventional loan to drop mortgage insurance once they've built enough equity, or to move off an FHA loan. I'll review your current loan and equity, then price a refinance across my network to see whether it makes sense for you.
What is a conventional loan?
A conventional loan is a mortgage backed by Fannie Mae or Freddie Mac rather than a government agency like FHA, VA, or USDA. It is the most common type of home loan and the most flexible, covering primary homes, second homes, and investment properties across Texas. When the loan amount fits within the annual Fannie/Freddie cap it is called 'conforming'; above that it becomes a jumbo loan.
What is the difference between FHA and a conventional loan?
FHA loans are insured by the federal government and tend to be more forgiving when credit is still building, while conventional loans follow Fannie Mae and Freddie Mac rules and can fit stronger credit profiles differently.
The biggest practical difference is mortgage insurance: conventional insurance can be cancelled once you build enough equity, while FHA insurance usually stays for the life of the loan. I run both side by side on your file and show you which one actually comes out ahead.
Are conventional loans assumable?
Generally no. Most conventional loans are not assumable, so a buyer cannot simply take over your existing loan and its terms. Government loans like FHA and VA are the assumable ones. If you are weighing an assumable option against a new conventional loan, send me the details and I'll walk you through how each path would actually work.
Do conventional loans have PMI?
Only when you put down less than enough to reach the equity threshold the program sets. When private mortgage insurance does apply, it is not permanent the way FHA insurance often is. You can request cancellation once you build enough equity, and it also falls off automatically at a set point. The exact amount depends on the program and your file, so I review the full profile before recommending a path.
Let's see where conventional lands for you.
Send me your scenario. I'll price it across my lender network and show you your options. No credit pull required to start.