Conventional loans are conventional loans that meet bank-funding criteria set by Fannie Mae (FNMA) and Freddie Mac (FHLMC). Each investor has their own credit overlays that can dramatically change an approval. We have many investors, some of which have no overlays, which is why working with a broker is so important. Brokers can offer hundreds of loan programs while a bank can ONLY offer you their products. Therefore, you should always check with a Broker before giving up on your loan.
Because the loans need to be attractive on the wholesale market, conventional loans have higher minimum credit scores 620 minimum and other criteria that can make it more difficult to qualify for than government run programs. One benefit, however, is that you typically see a lower interest rate with higher scores of 720 and above and loan amounts below 80% of the home's appraised value.
TEXAS CONFORMING LOAN LIMITS Up to $647,200
While many think that a 20% down payment is required for all conventional loans, many lenders now offer lower down payment options some as low as 3%down. Always ask me about down payments less than 20%. We have a lender paid mortgage insurance that slightly increases the rate but has NO Monthly Mortgage Insurance Included.
