ServicesConventional Loans
Conventional Loans in Kyle, TX
A conventional loan is the standard home loan with no government backing. With good credit and steady income, it often costs less over time than other options. We walk you through the rate, the down payment and the monthly payment in plain terms before you commit.
What a conventional loan is and who it fits
A conventional loan follows the rules set by Fannie Mae and Freddie Mac, not a government agency like the FHA or VA. Most buyers with a decent credit score, a steady paycheck and some savings look at one first. It works for a first house, a move-up purchase, a second home or a rental property.
The big draw is mortgage insurance. Put less than 20 percent down and you pay private mortgage insurance, but it can come off once you build enough equity. FHA mortgage insurance usually stays much longer. If your credit is still healing, our FHA Loans page may be the better fit, and veterans should compare VA Loans too.
We treat every borrower the way we'd want a neighbor treated. Straight numbers, no pressure, and an honest answer if another loan makes more sense for you.
What we handle on a conventional loan
- A rate quote with the full picture
- We quote the rate along with points, lender fees and estimated closing costs. You see the APR, not just the headline number, so you can compare offers fairly.
- Pre-approval letter
- We check credit, income and assets up front and issue a pre-approval letter you can hand to a seller. On a listing with several offers, a solid letter carries weight.
- Down payment planning
- Some conventional programs allow as little as 3 percent down for qualifying first-time buyers. We show how different down payments change the payment and the PMI, and whether gift funds from family can help.
- PMI options laid out
- Monthly PMI, a single upfront premium, or enough down to skip it. We explain the trade-offs and when the monthly charge can be removed.
- Refinance
- Conventional loans aren't only for buying. We handle rate-and-term and cash-out refinances for borrowers with enough equity. If you'd rather keep your current rate and borrow against equity, see our HELOC page.
- Closing coordination
- We keep the title company, appraiser and your agent on the same schedule. If a document is missing, you hear about it early, before it holds up closing.
Signs a conventional loan is the right call
Your credit is in decent shape
A score in the 700s usually earns better pricing on a conventional loan than on FHA. Even in the 620s, it's worth comparing both.
You can put 5 percent or more down
The more you put down, the lower your PMI. At 20 percent, it goes away entirely.
You're buying a second home or a rental
FHA, VA and USDA loans are for a house you live in. Conventional financing covers vacation properties and investment purchases too.
You want mortgage insurance that ends
PMI can be dropped once you reach 20 percent equity, and it ends automatically at 22 percent on the original schedule.
Your income is easy to document
Conventional underwriting leans on W-2s and tax returns. If you're self-employed and your returns show heavy write-offs, our Bank Statement Loans page may fit better.
From first call to closing
- 1
The first phone call
Tell us what you're buying or refinancing, roughly what you earn and what you've saved. We give you a rate quote and a ballpark payment on that call. Later meetings can be at our office or by phone and video.
- 2
Paperwork and pre-approval
We'll ask for recent pay stubs, W-2s, two months of bank statements and permission to pull credit. Once those check out, you get your pre-approval letter.
- 3
Contract, appraisal and underwriting
After you're under contract, we lock your rate when you're ready and order the appraisal. Underwriting may send follow-up questions. We explain each one and why it matters.
- 4
Closing day
You get your Closing Disclosure at least three business days before you sign. We go over it line by line so nothing at the table catches you off guard.
What moves your rate and closing costs
No two conventional loans price the same. Your rate and fees depend on your file and on the market the day you lock. We show how each factor affects your numbers so you can decide what to adjust.
- Credit score
- Conventional pricing steps in bands. Moving up one band can lower your rate, so paying down a credit card before applying is sometimes worth it.
- Down payment
- Less down means a higher loan-to-value. That raises the PMI cost and can nudge the rate up.
- Property type and use
- A condo, a second home or a rental each prices differently than a primary single-family house.
- Points and lock length
- Paying discount points buys a lower rate. A longer rate lock protects you on a slow closing but can cost a little more.
- Taxes and insurance in escrow
- Texas property taxes run high, and they ride along in your monthly payment. We include them in the estimate so the number you plan around is the real one.
Conventional loan questions we hear often
Something not covered here? (512) 881-3709
What credit score do I need for a conventional loan?
Most conventional loans need at least a 620. Better pricing usually starts in the 700s. If your score is lower, we'll tell you plainly and talk through FHA as an option.
Do I really need 20 percent down?
No. Many buyers put down 3 to 10 percent. Below 20 percent you'll pay PMI until you build enough equity. We'll show you the payment at a few different down payment amounts so you can pick.
How do I get rid of PMI later?
You can ask your servicer to remove it once your balance reaches 80 percent of the original value, as long as your payment history is clean. It drops off on its own at 78 percent on the original schedule. If the property gains value, a new appraisal may get you there sooner, depending on the servicer's rules.
Can I use a conventional loan for a rental property in Kyle?
Yes. Investment property loans usually need a larger down payment and carry a higher rate than a primary residence. We'll show you the numbers and count expected rent where the guidelines allow.
How long does a conventional loan take to close?
Often around 30 to 45 days from contract. The appraisal, title work and how quickly documents come in all play a part. We'll give you a realistic timeline once we see your file.
Can gift money cover my down payment?
On a primary residence, gift funds from a family member can cover some or all of it. We'll need a signed gift letter and a paper trail showing the transfer.
See what your conventional rate looks like
Bring a rough price range and an idea of your savings. We'll quote a rate, run the payment and tell you honestly whether conventional is your best fit.