How Does it Work in Texas ?
Conventional loans are originated and serviced by various private mortgage lenders such as credit unions, banks, and other financial institutions. All of these also provide government-insured mortgage loans. Generally, Conventional Loans in Texas don’t have some of the same features as government-insured loans, like low credit score requirements and no mortgage insurance or down payment.
If you’re looking for a conventional loan, you can get approved with a credit score that’s as low as 620. However, some lenders might be looking for a score of 660 or better. And although you could qualify for a conventional loan, your interest rate will mainly rely on your credit score and the overall credit history. If you have a better credit score, the less you’ll incur in interest over the loan period.
With a down payment requirement of as low as 3%, you can obtain conventional mortgage loans. However, some lenders comprise special programs that provide up to 100% financing. But if you don’t come up with 20% or more, the lender often requests you to get private mortgage insurance, and this can cost from 0.3% to 1.5% of your loan amount (annually). Typically, conventional loans run for 30 years. However, you can still qualify for a traditional mortgage loan that runs for 15 or 20 years.