Conventional Loans
What Are Conventional Loans & Why They’re a Smart Choice in Austin, TX
Conventional loans are one of the most popular mortgage options in the Austin, TX area — and for good reason. With flexible down payment options (as low as 3%) and competitive interest rates, these loans are a great fit for both first-time and repeat buyers. Whether you're buying in Cedar Park, Round Rock, Leander, or right in the heart of Austin, conventional financing offers the flexibility and simplicity many buyers are looking for.
Why Work With Stephanie (aka BestAustinLender) for Your Conventional Loan?
💪 Local mortgage expert with 20+ years in the Austin and Central Texas market
🎯 Custom loan strategies based on your goals, timeline, and financial picture
🚫 No jargon, no fluff — just clear guidance and smart options
📝 Fast pre-approvals to help you stand out in this competitive market
📉 Access to OVER 100 lenders = better rates and more choices
📍 Hyper-local advice to help position your offer (and impress the listing agent)Conventional Home Loans in Texas
What Are Conventional Loans?
Conventional loans are home loans that aren’t backed by the government (like FHA, VA, or USDA loans). Instead, they follow guidelines set by Fannie Mae and Freddie Mac, which makes them widely accepted and flexible for many types of buyers.
They come in fixed or adjustable rate options, can be used for primary homes, second homes, or investment properties, and often offer the best pricing for borrowers with strong credit and stable income. Plus, they tend to come with lower overall costs than government-backed loans if you meet the qualifications.
If you’ve got decent credit, some money saved, and steady income—this might be your best bet.
Why a Conventional Loan Might Be Right for You
- You’re planning to stay in your home long-term and want predictable monthly payments
- You’re putting 3–20% down and want flexibility on terms
- You want to avoid the upfront costs and stricter rules of FHA or government loans
- You're buying a second home or investment property (which conventional loans allow!)
Frequently Asked Questions About Conventional Loans in Austin
Quick Answers to Help You Decide
☑️ A 620+ credit score gets you into most conventional programs.
☑️ First-time buyers can start with 3% down.
☑️ PMI isn’t forever — you can remove it once you hit 20% equity.
☑️ This loan works for primary homes, second homes, and investment properties across Austin & Central Texas.Do I need 20% down for a conventional loan?
Nope! That’s one of the biggest myths out there. You can get a conventional loan with as little as 3% down if you're a first-time buyer and meet income/credit guidelines. Most buyers put down 5–10%, and mortgage insurance (PMI) helps cover the lender's risk until you reach 20% equity.
Can I remove PMI from a conventional loan?
Yes! Unlike FHA loans, PMI on a conventional loan can be removed once you reach 20% equity in your home — either through payments or home value increases. We'll even help you track this and start the removal process when you're eligible.
What credit score do I need to qualify?
putting lessThe minimum credit score has been removed for conventional loans as long as we can get automated approval. The old minimum credit score was 620. Some mortgage insurance companies still have minimum credit score requirements if you are puttin gless than 20% down. That said, the higher your score, the better your rate and terms — so improving your credit before applying can save you money long term.
What are the benefits of a conventional loan vs. FHA?
Lower overall costs if you have strong credit
No upfront mortgage insurance premium
PMI can be removed (FHA mortgage insurance sticks for the life of the loan unless you refinance)
More property flexibility, including second homes and investment properties
Are conventional loans only for primary residences?
Not at all. Conventional loans can be used for:
- Primary residences
- Second homes (like lake houses or vacation properties)
- Investment properties
This flexibility is what makes them a favorite among more experienced buyers and investors.
Provided for informational purposes only. This is not a commitment to lend, not all borrowers will qualify.
Not an offer or agreement. Information, rates, & programs are subject to change without prior notice. Not available in all states. Subject to credit & property approval. Not affiliated with any government agency. For licensing information go to: www.nmlsconsumeraccess.org
Edge Home Finance, LLC
4413 Spicewood Springs Rd #302 Austin TX 78759
Branch NMLS# 2514483
Edge Home Finance, LLC
5860 Baker Road
Minnetonka, MN 55345
Company NMLS: 891464
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REGULATOR:
TX Department of Savings and Mortgage Lending
2601 North Lamar, Suite 201
Austin, TX 78705
Phone: (512) 475-1350
Fax: 512-475-1360
DISCLAIMERS:
Consumers wishing to file a complaint against a mortgage banker or a licensed mortgage banker residential mortgage loan originator should complete and send a complaint form to the Texas Department of Savings and Mortgage Lending, 2601 North Lamar, Suite 201, Austin Texas 78705. Complaint forms and instructions may be obtained from the department’s website at www.sml.texas.gov. A toll-free consumer hotline is available at 1-877-276-5550.
The department maintains a recovery fund to make payments of a certain actual out of pocket damages sustained by borrowers caused by acts of licensed mortgage banker residential mortgage loan originator. A written application for reimbursement from the recovery fund must be filed with and investigated by the department prior to the payment of a claim. For more information about the recovery fund. Please consult the department’s website at www.sml.texas.gov.
Copyright 2012 Stephanie Donnell