3% down · PMI drops off
Conventional is the everyday-lineup loan — the Fannie Mae and Freddie Mac programs that most buyers with decent credit should be comparing everything else against. Loan amounts run up to $832,750 in most Texas counties for 2026.
The big advantage over FHA: private mortgage insurance is cancellable. Once you reach 20% equity, PMI comes off and your payment drops permanently. If your credit is solid, conventional almost always wins over the life of the loan.
Current guidelines. Overlays vary by investor, so treat these as the strike zone — not a hard rulebook.
Minimum down payment
3% for qualifying first-time buyers, 5% standard, 10% on second homes, 15%+ on investment property
Credit score
620 minimum; best pricing at 740+
Debt-to-income
Up to 50% with strong credit and reserves; 45% is the comfortable zone
Mortgage insurance
PMI required under 20% down — cancellable at 20% equity, automatic at 22%
Loan limit
$832,750 in most Texas counties for 2026 (above that, see jumbo)
Occupancy
Primary, second home, or investment property
Reserves
0–6 months of payments depending on occupancy and credit profile
Unlike FHA, PMI comes off at 20% equity — either from paying down the balance or from appreciation with a new appraisal.
HomeReady and Home Possible programs let qualifying buyers in at 3% with reduced PMI.
Conventional is the primary path to financing second homes and investment properties.
For 700+ credit with 10%+ down, conventional usually beats FHA on total cost — we'll show you the side-by-side.
A 15-minute call. Real numbers, no credit pull required to start.
Use our calculator to see principal, interest, taxes, insurance, and PMI.
Open CalculatorBring us your price range and credit ballpark. We'll show you the real side-by-side.
Steve Kent · NMLS #1621847 · Licensed in 22 states