First-time buyers may qualify with as little as 3% down. Repeat buyers from 5% down.
Conventional loans do not have an upfront mortgage insurance premium unlike FHA programs.
Private mortgage insurance can typically be removed once you reach 20% equity.
Conventional loans are mortgages not backed by a government agency (unlike FHA, VA, or USDA). They conform to Fannie Mae and Freddie Mac guidelines and typically require stronger credit and documentation than government-backed programs.
For borrowers with good credit and steady income, conventional loans often offer competitive rates, flexible terms, and the ability to remove mortgage insurance once sufficient equity is established.
Most conventional loans require a minimum 620 credit score, though higher scores typically yield better rates and terms. Conforming loan guidelines set the general standards, but individual lenders may have overlays.
Conventional loans can allow as little as 3% down for first-time homebuyers or 5% for repeat buyers. With less than 20% down, private mortgage insurance (PMI) is typically required.
Conforming loan limits are set annually by the FHFA. For most Texas counties, the 2025 single-family limit is $806,500. Loans exceeding conforming limits are considered jumbo loans.
PMI can typically be removed once you reach 20% equity in your home. You can also avoid it upfront by putting 20% or more down. Lender-paid PMI options may also be available at a higher rate.
Estimated Monthly Payment
$2,206.58/mo
Principal & Interest
$1,706.58
Taxes
$400.00
Insurance
$100.00
Loan amount: $270,000 · This is an estimate only. Actual payments depend on program, lender, mortgage insurance, HOA, and underwriting. Not a commitment to lend.
Apply online through our secure Loan Factory portal, or call Ken directly for a personal consultation. There's no obligation for a pre-qualification review.
Applications processed securely through Loan Factory, Inc. NMLS #320841 · Ken Harmon NMLS #921561
Important Disclosures
Programs, rates, terms, and conditions are subject to change without notice and are subject to credit and underwriting approval. Not all applicants will qualify. Loan amounts, interest rates, and program availability may vary based on individual circumstances, lender guidelines, and current market conditions. This is not a commitment to lend.
Ken Harmon, NMLS #921561. Loan Factory, Inc. NMLS #320841. Licensed to originate mortgage loans in the State of Texas. Verify licensing at nmlsconsumeraccess.org.
Equal Housing Opportunity.