Conventional Loans
Flexible financing backed by private lenders, not a government agency.
In plain English
Flexible financing backed by private lenders, not a government agency. Provides a straightforward path to homeownership without government-program restrictions, often with competitive terms for qualified borrowers.
Who it may help
Buyers with steady income, solid credit, and funds for a down payment — including many move-up buyers and those purchasing standard homes in The Woodlands, Spring, and Katy.
What problem it may solve
Provides a straightforward path to homeownership without government-program restrictions, often with competitive terms for qualified borrowers.
How the review works
We look at your credit history, income stability, debt-to-income ratio, and available funds, then compare Conventional against FHA and other options so you can see the tradeoffs side by side.
Documentation & property considerations
Typical items include recent pay stubs, W-2s or 1099s, tax returns, bank statements, and asset documentation. Requirements vary by lender and borrower.
Potential advantages
- No upfront mortgage insurance premium required by a government agency
- May offer flexible mortgage insurance cancellation once equity thresholds are met
- Broad property-type eligibility, including second homes and investment properties
- Often competitive terms for borrowers with stronger credit profiles
Tradeoffs to consider
- Credit and down-payment expectations are generally higher than government-backed programs
- Private mortgage insurance may apply with less than 20% down
- Guidelines vary by lender and investor
Common mistakes to avoid
- Assuming you need 20% down — many Conventional programs allow less
- Overlooking how mortgage insurance can change over time
- Not comparing against FHA when credit is still building
Local context for Greater Houston
Conventional financing is common for established neighborhoods across Greater Houston and new-construction builds in Montgomery and Fort Bend counties. Property tax and insurance costs vary meaningfully by county, so we factor those into your monthly picture.
Compare with alternatives
| Program | Who it may help | Key consideration |
|---|---|---|
| Conventional Loans | Buyers with steady income, solid credit, and funds for a down payment — including many move-up buyers and those purchasing standard homes in The Woodlands, Spring, and Katy. | Credit and down-payment expectations are generally higher than government-backed programs |
| FHA Loans | First-time buyers, buyers building or rebuilding credit, and those with smaller down-payment funds across Greater Houston and The Woodlands. | Upfront and annual mortgage insurance premiums typically apply |
| Jumbo Loans | Buyers purchasing higher-priced homes in The Woodlands, parts of Houston, and other premium Greater Houston markets. | Stricter credit, income, and reserve requirements |
| Down Payment Assistance | First-time and qualifying buyers across Greater Houston who need help bridging the gap to a down payment or closing costs. | Income and purchase-price limits often apply |
Frequently asked questions
Do I really need 20% down for a Conventional loan?
No. Many Conventional programs allow less than 20% down. With less than 20% down, private mortgage insurance typically applies, but it may be removable later once you reach certain equity thresholds. Requirements vary by lender.
Is Conventional better than FHA?
It depends on your credit, down payment, and goals. Conventional may be more cost-effective for stronger credit profiles, while FHA can be more flexible for borrowers still building credit. We compare both side by side so you can decide clearly.
Can I use a Conventional loan for an investment property?
Yes, Conventional financing is available for investment properties, though down-payment and reserve requirements are typically higher than for a primary residence. Requirements vary by lender.
What credit score do I need?
Credit score requirements vary by lender and investor. We review your full profile — not just the score — and explain what options your situation supports.
How long does the process take?
Timelines vary based on documentation, property, and market conditions. We give you a realistic timeline once we review your situation.
Authoritative Sources
Guidelines vary by lender, investor, and borrower. This page is for educational purposes only and is not a commitment to lend, a rate quote, or an approval.
Related programs
See if Conventional fits your situation
Let's review your situation and see whether this program fits — side by side with your other options.