What credit score do I need for a conventional loan?

Many conventional programs start around 620. Pricing improves as the score climbs, so we look at whether a few months of preparation would save you money. If your score is lower, our FHA Loans page covers an option with more flexible credit guidelines.

Do I really need twenty percent down?

No. Some borrowers qualify with three to five percent down. Below twenty percent you pay private mortgage insurance, and we show you exactly what that adds and when it can come off.

How do I remove private mortgage insurance later?

You can ask to cancel it once your balance reaches 80 percent of the original value and your payment history is clean. It drops off automatically at 78 percent under federal rules. In some cases a new appraisal showing higher value can bring that date closer, depending on the servicer's requirements.

Can I use a conventional loan on a property with acreage or a well?

Usually, yes. The appraisal has to support the value, and some loans ask for a water test or septic inspection. We flag these items at the start so they do not slow your closing.

Should I pick a 15-year or 30-year term?

A 15-year loan carries a lower rate and builds equity quickly, but the payment is higher. A 30-year loan keeps the payment comfortable and still lets you pay extra when you choose. We run both against your budget before you decide.

Can I refinance a conventional loan down the road?

Yes. Refinancing can lower your rate, shorten the term or remove mortgage insurance once your equity allows. Once you have built equity, a HELOC is another way to draw on it without replacing your first mortgage.

Loan officer in a dark blazer reviews a printed payment sheet with a couple at a wooden conference table beside a window and potted plant

ServicesConventional Loans

Conventional Loans in Dripping Springs

A conventional loan is the steady, flexible home loan most buyers with good credit and some savings choose. We help you set it up carefully, with a sensible rate, a down payment that fits, and mortgage insurance you can remove once your equity grows.

Get pre-qualified by phone at (512) 518-4926

A home loan you will keep shaping for years

A conventional loan is a mortgage with no government agency standing behind it. Most follow guidelines set by Fannie Mae and Freddie Mac, and they suit borrowers with steady income, reasonable credit and some money set aside for a down payment and closing.

We treat it as something you will live with long after the keys change hands. The choices made before closing decide what you pay for a decade or more, so we spend our time on the details that keep working for you: private mortgage insurance with a clear exit, a term that matches how long you plan to stay, and room to refinance if rates move in your favor.

We bring 11 years in the mortgage industry to that planning, and we have been NMLS licensed for 10 years. You get a loan officer who explains the tradeoffs plainly and stays reachable after closing.

What we handle on a conventional loan

Pre-qualification review

We look at income, monthly debts, credit and savings together. You come away with a realistic price range before you tour a single house.

Down payment planning

Twenty percent down is not required. Some first-time buyers qualify with as little as three percent, and we show you how a larger or smaller down payment changes the payment and the mortgage insurance.

Mortgage insurance with an exit

If you put less than twenty percent down, private mortgage insurance applies. We mark the point where you can ask to cancel it and the point where federal rules drop it automatically, so it never lingers by accident.

Fixed and adjustable terms

We compare 30-year and 15-year fixed loans with adjustable-rate options side by side. The right choice depends on how long you expect to keep the loan.

Appraisal and underwriting coordination

We order the appraisal, answer underwriter questions and keep the file moving. Hill Country properties on acreage or with a private well and septic system can need extra documentation, and we plan for it early.

Final figures reviewed together

Federal rules require your Closing Disclosure to reach you no later than three business days ahead of signing. We sit down with that document and compare each fee to your earlier estimate, so nothing on signing day comes as a surprise.

Loan officer pointing with a pen at a printed payment worksheet beside a laptop as a borrower listens at a wood office table with a calculator and frosted glass wall

Signs a conventional loan is the right fit

Your credit is in good shape: Conventional pricing rewards stronger credit more than most loan types. A solid score can mean a better rate and lower mortgage insurance.
You have savings for a down payment: Even a modest down payment opens the door. More down lowers the monthly cost and shortens the time until mortgage insurance comes off.
You want mortgage insurance that ends: FHA mortgage insurance often stays for the life of the loan. Conventional mortgage insurance is designed to be removed as equity builds.
The property is a getaway or an investment: FHA, VA and USDA programs are generally limited to the place you live full time. A conventional loan can also cover a weekend retreat or a property you plan to rent out.
Your income is steady and documented: W-2 income or clean tax returns make underwriting straightforward. If you are self-employed with uneven returns, our Bank Statement Loans page may describe a better match.

From first call to closing, and after

1
Pre-qualification by phone
We talk through your goals, income and debts and give you a working budget. No paperwork is needed for this first conversation.
2
Pre-approval with documents
You send pay stubs, tax returns, bank statements and permission to check credit. We review them and issue a pre-approval letter you can include with an offer.
3
Rate lock and appraisal
Once you are under contract, we help you decide when to lock your rate and for how long. The appraisal is ordered at the same time.
4
Underwriting and closing
The underwriter verifies everything and may ask for a few more documents. We gather them with you, confirm clear to close and review the final figures before you sign.
5
Care after closing
We keep your file in mind. When your equity nears the mortgage insurance threshold or rates drop enough to make a refinance worthwhile, we can review the numbers with you.

What shapes your rate and closing costs

No two conventional loans are priced alike. The rate and fees reflect the risk a lender sees in the file, along with the choices you make about term and timing. We show you each factor and how much room you have to adjust it.

Credit score: Higher scores earn better pricing and lower mortgage insurance premiums. Small improvements before you apply can matter.
Down payment and loan-to-value: The more equity you start with, the less risk the lender carries. That usually means a better rate and less or no mortgage insurance.
Term and rate lock length: Shorter terms tend to carry lower rates. A longer lock protects you through a slow closing but can cost a bit more.
Property type and occupancy: A primary residence prices best. Second homes, investment properties and condominiums carry adjustments.
Points and lender credits: You can pay points to lower the rate or accept a slightly higher rate to reduce cash at closing. We compare both against how long you plan to keep the loan.

Conventional loan questions

What credit score do I need for a conventional loan?: Many conventional programs start around 620. Pricing improves as the score climbs, so we look at whether a few months of preparation would save you money. If your score is lower, our FHA Loans page covers an option with more flexible credit guidelines.
Do I really need twenty percent down?: No. Some borrowers qualify with three to five percent down. Below twenty percent you pay private mortgage insurance, and we show you exactly what that adds and when it can come off.
How do I remove private mortgage insurance later?: You can ask to cancel it once your balance reaches 80 percent of the original value and your payment history is clean. It drops off automatically at 78 percent under federal rules. In some cases a new appraisal showing higher value can bring that date closer, depending on the servicer's requirements.
Can I use a conventional loan on a property with acreage or a well?: Usually, yes. The appraisal has to support the value, and some loans ask for a water test or septic inspection. We flag these items at the start so they do not slow your closing.
Should I pick a 15-year or 30-year term?: A 15-year loan carries a lower rate and builds equity quickly, but the payment is higher. A 30-year loan keeps the payment comfortable and still lets you pay extra when you choose. We run both against your budget before you decide.
Can I refinance a conventional loan down the road?: Yes. Refinancing can lower your rate, shorten the term or remove mortgage insurance once your equity allows. Once you have built equity, a HELOC is another way to draw on it without replacing your first mortgage.

Loan officer in a blue button-down shirt points a pen at a printed document at an office desk while a couple seated across reads along, laptop and monitor beside him

Know your conventional loan budget before you shop

One phone conversation turns your income, savings and credit into a working price range. While we talk, we can also share current rate quotes and explain which conventional terms suit how long you plan to stay.

Begin your pre-qualification at (512) 518-4926