Conventional Loan Requirements in Dallas, TX
A conventional loan is a mortgage that follows the guidelines set by Fannie Mae and Freddie Mac. These government-sponsored companies help provide lenders with the money they need to make home loans. Loan size, limited to $726,200 in most U.S. counties, is the most well-known requirement for conventional loans.
Texas Conventional Home Loans: Streamlined Financing Under $766,550
In Texas, conventional home loans cater to borrowers who have established good to excellent credit histories. These loans are conforming, meaning they align with the criteria set by Fannie Mae and Freddie Mac, as opposed to government-backed loans such as USDA and VA loans. For the year 2024, the conforming loan limit across all Texas counties has been set at $766,550.
Determining Suitability for a Conventional Loan
Conventional loans are often a fitting choice for those who may find the requirements of FHA, USDA, or VA loans too stringent or the processing times too lengthy. These mortgages are secured by Fannie Mae or Freddie Mac and offer more flexibility in terms of property type and usage.
Conventional Loan Criteria for Texas in 2024
- Insured by Freddie Mac or Fannie Mae
- Available for primary residences, second homes, or investment properties
- Applicable to single-family homes, multi-unit properties, or condominiums
- Maximum loan amount of $766,550
- High balance loans with up to 95% Loan to Value
- Up to 97% Loan to Value options available
- Diverse mortgage insurance choices
- Competitive rates and favorable terms
- Eligibility for manufactured homes (subject to certain restrictions)
Advantages of Opting for a Conventional Loan
Conventional loans in Texas are versatile, enabling the purchase of primary homes, investment properties, or the acquisition of second mortgages. To qualify, applicants should have robust credit and a solid savings history. Although conventional loans maintain more rigorous underwriting standards than most government-backed loans, they offer several benefits that are attractive to many Texas borrowers:
- Potential to eliminate the need for PMI (private mortgage insurance) with a 20% down payment
- Freedom to choose the loan term that best suits your financial goals
- Typically faster processing and closing timelines than government-backed loans
- Flexible down payment options, starting as low as 3% for qualified buyers
Conventional loans offer a straightforward path to homeownership for those who meet the credit and savings requirements. With the ability to tailor the mortgage to your specific needs, from the term length to the type of property you wish to invest in, conventional loans provide a solid foundation for financial planning and investment.
Choose HomeTown Lending for Your Conventional Loan in Dallas, TX
Explore our current conventional mortgage rates in Texas and find out if a conventional loan is the right choice for your new home purchase. Our expert team at HomeTown Lending is ready to guide you through the process, ensuring a smooth and efficient path to securing your dream home or investment.