The most popular mortgage in America. Competitive rates, flexible terms, and no upfront mortgage insurance with 20% down — available for purchase, refinance, or cash-out.
Conventional loans offer flexibility and competitive terms that make them America's most popular mortgage option.
💰
No Upfront Mortgage Insurance
Unlike FHA loans with their 1.75% upfront MIP, conventional loans have zero upfront mortgage insurance costs — saving you thousands at closing.
📈
PMI Drops Automatically
PMI automatically cancels at 78% LTV (FHA annual mortgage insurance can last 11 years or the mortgage term, depending on the applicable HUD rules). With 20%+ down, no PMI at all — ever.
🏠
Flexible Down Payment
As low as 3% down through Conventional 97, HomeReady, or Home Possible programs. Or put down any amount up to 100%.
💳
Competitive Rates
Borrowers with 700+ credit scores often get lower rates than FHA loans. Excellent credit (740+) receives the best pricing adjustments.
🏢
Wide Property Types
Finance primary residences, second homes, investment properties, condos, townhomes, and 1-4 unit multi-family properties.
🔄
Multiple Refinance Options
Rate-and-term refinance to optimize terms, cash-out refinance to access equity, or remove PMI without refinancing once you reach 80% LTV.
Eligibility
Who Qualifies for a Conventional Loan?
Conventional loans have straightforward requirements. Here's what you need to know.
Credit & Income Requirements
Credit Score
Minimum 620 credit score (680+ for best rates)
740+ score receives most favorable pricing
Lower scores acceptable with larger down payments
Income & Employment
Stable employment history (2 years preferred)
W-2, 1099, and self-employed income all eligible
Debt-to-income ratio up to 50% with compensating factors
Occupancy
Primary residences (lowest rates, lowest down payment)
Second homes (10% minimum down payment)
Investment properties (15-25% down depending on property)
Property & Down Payment
Down Payment
As low as 3% down (Conventional 97 / HomeReady / Home Possible)
5% standard minimum for most conventional loans
20% down = no PMI required
Higher down payment = lower rates and no mortgage insurance
Must meet appraisal and property condition standards
Loan Limits
$832,750 for one unit in most areas (2026 conforming limit)
Higher limits in high-cost areas (up to $1,249,125 for one unit) and for two- to four-unit homes
Above limits = Jumbo loan
Conventional Refinance
Refinance to Better Terms
A conventional refinance lets you optimize your existing mortgage. Remove PMI once you hit 20% equity, shorten your term to build equity faster, consolidate debt, or access cash for renovations or investments.
PMI Removal: Once you reach 80% LTV, you can request PMI cancellation — no refinance required. At 78% LTV, it drops automatically.
From FHA to Conventional: If your FHA loan's annual MIP runs 11 years or the mortgage term (depending on your original LTV) and you have 20%+ equity, refinancing to conventional eliminates all mortgage insurance.
Cash-Out: Access up to 80% of your home's value for renovations, investments, or debt consolidation.
Looking to access your equity without refinancing? See our HELOC page → for a flexible line of credit option.
Conventional Purchase
Buy Your Home with Conventional Financing
Conventional purchase loans offer flexibility for all types of homebuyers. Whether you're a first-time buyer using 3% down programs or an investor purchasing a multi-unit property, conventional loans provide competitive rates and clear PMI exit strategies.
As low as 3% down (Conventional 97 / HomeReady / Home Possible)
No upfront mortgage insurance fee (vs. FHA's 1.75% UFMIP)
PMI drops automatically at 78% LTV (unlike FHA's annual MIP, which can run 11 years or the mortgage term)
Wide property eligibility including condos and multi-unit homes
Can be combined with down payment assistance programs
Higher loan limits than FHA ($832,750 vs. $541,287 in most areas)
With 20% down, you avoid PMI entirely. Even with less than 20% down, conventional PMI is typically cheaper than FHA MIP and drops off automatically.
How They Compare:
Conventional PMI: varies by credit and down payment, and drops off at 78% LTV
FHA MIP: annual premium set by HUD; lasts 11 years or the life of the loan, depending on the down payment
Explore all purchase options including FHA, VA, USDA, and DPA programs in our Purchase Hub →
Loan Comparison
Conventional vs. FHA
See how conventional loans compare to FHA financing for borrowers with good credit and stable income.
Conventional
FHA
Min Down Payment
3%
3.5%
Upfront Insurance
None
1.75% UFMIP
Monthly Insurance
PMI (drops at 78% LTV)
Annual MIP: 11 years or the mortgage term, depending on original LTV and applicable FHA rules
Min Credit Score
620
580
Max DTI
50%
57%
Loan Limits
$832,750 (one unit, most areas)
$541,287-$1,249,125
Property Types
Primary, 2nd home, investment
Primary only
Seller Concessions
3-9% (based on down payment)
Up to 6%
Assumable
✗ No
✓ Yes
*Conventional loans typically offer better overall value for borrowers with 680+ credit scores and 10%+ down payment.
Payment Calculator
Estimate Your Conventional Loan Payment
Toggle between Purchase and Refinance to see your estimated monthly payment.
Estimates only. Actual rates and payments will vary based on credit, income, and property. Subject to credit approval.
The Process
Your Conventional Loan Journey
From application to closing, here's what to expect at every step.
1
Pre-Qualification
1 Day
Complete a quick application with Texana Bank. We'll run a soft credit check (won't affect your score), review your income and assets, and give you a clear picture of your buying power or refinance options.
2
Home Search / Rate Lock
Varies
For purchases: shop for your home with confidence. For refinances: we'll lock your rate and order the appraisal. Your loan officer guides you through documentation requirements.
3
Processing & Underwriting
3-4 Weeks
We verify your documents, order the appraisal, and submit to underwriting. Automated underwriting systems provide fast decisions. Respond promptly to any condition requests to keep things moving.
4
Closing
1 Day
Sign your final documents and receive your keys (purchase) or start enjoying your new terms (refinance). Your loan funds and you're officially a conventional loan borrower.
Frequently Asked Questions
Conventional Loan FAQs
Answers to the most common questions about conventional purchase loans, refinances, PMI, and qualifying requirements.
No. Texana Bank Mortgage uses a soft credit inquiry for pre-qualification, which has absolutely no impact on your credit score. You can check your rate, explore loan options, and get pre-approved without any effect on your credit. A hard inquiry only occurs later if you formally move forward with a full application.
A conventional loan is a mortgage that is not backed by a government agency (unlike FHA, VA, or USDA loans). Conventional loans conform to guidelines set by Fannie Mae and Freddie Mac, which purchase these mortgages from lenders. They typically offer competitive rates and flexible terms for borrowers with good credit.
Conforming loans meet the standards set by Fannie Mae and Freddie Mac, including loan limits ($832,750 in most areas for 2026). Non-conforming loans exceed these limits (jumbo loans) or don't meet certain criteria. Most conventional loans are conforming loans.
The minimum credit score for a conventional loan is typically 620, though 680+ will qualify you for the best rates and terms. Borrowers with scores of 740+ receive the most favorable pricing adjustments and lowest interest rates.
Conventional loans can have down payments as low as 3% through programs like Conventional 97, HomeReady, or Home Possible. However, putting down less than 20% will require PMI (private mortgage insurance) until you reach 78-80% loan-to-value ratio.
Conventional loans can be used for primary residences, second homes, and investment properties. Eligible property types include single-family homes, condos (with approval), townhomes, and multi-unit properties (2-4 units). Investment properties typically require larger down payments.
You can refinance your conventional loan through a rate-and-term refinance (to change your rate or term), a cash-out refinance (to access equity), or to remove PMI once you reach 80% LTV. The process involves a new application, appraisal, and underwriting, similar to your original loan.
For loans covered by federal PMI cancellation rules, automatic termination generally occurs when the balance is scheduled to reach 78% of the home's original value, provided payments are current. You may request cancellation in writing at 80%, including after extra principal payments, subject to payment-history, lien and property-value requirements. You can request cancellation at 80% LTV if you have a good payment history. Unlike FHA loans, where annual MIP can run 11 years or the mortgage term depending on your original LTV, conventional PMI is temporary and drops off once you build sufficient equity.
A conventional cash-out refinance allows you to refinance your existing mortgage for more than you owe and receive the difference as cash. You can access up to 80% of your home's value for a primary residence. Cash can be used for renovations, debt consolidation, investments, or any purpose.
Yes. Refinancing from FHA to conventional is common once you have 20% equity, as it eliminates both upfront and monthly mortgage insurance. You'll need a credit score of 620+ and sufficient equity. This can save $100-300/month by removing FHA's ongoing annual MIP.
A rate-and-term refinance replaces your existing mortgage with a new loan that has different terms — typically a lower interest rate or shorter loan term. No cash is taken out; the goal is to reduce interest costs or pay off your home faster.
Private Mortgage Insurance (PMI) is required on conventional loans with less than 20% down. It protects the lender if you default. PMI typically costs 0.3% to 1.5% of the original loan amount annually, depending on your credit score and down payment amount.
PMI on conventional loans automatically cancels at 78% LTV and can be removed at 80% LTV with no refinance required. FHA MIP lasts the life of the loan if you put down less than 10%, and FHA charges an upfront 1.75% fee. Conventional loans have no upfront mortgage insurance premium.
Conventional loan closing costs typically range from 2-5% of the loan amount and include origination fees, appraisal ($400-600), title insurance, recording fees, credit report, and prepaid taxes/insurance. Unlike FHA loans, there is no upfront mortgage insurance premium of 1.75%.
Yes. Seller concessions are allowed on conventional loans. The amount varies by down payment: 3% of the purchase price for down payments under 10%, 6% for 10-25% down, and 9% for 25%+ down. This is more restrictive than VA (4%) but more flexible than most programs.
Most conventional loans allow debt-to-income (DTI) ratios up to 45-50%, with some programs allowing up to 50% with strong compensating factors such as high credit scores, significant reserves, or low loan-to-value ratios. Automated underwriting systems determine maximum allowable DTI.
Yes. Conventional loan guidelines typically require a 4-year waiting period after a Chapter 7 bankruptcy discharge and 2-4 years after a Chapter 13 discharge (depending on circumstances). Extenuating circumstances may reduce wait times. You'll need re-established credit and stable income.
Reserve requirements vary by loan type and occupancy. Primary residence purchases with less than 20% down typically don't require reserves. Investment properties and higher-risk profiles may require 2-6 months of reserves (enough liquid assets to cover mortgage payments for that period).
Conventional 97 is a Fannie Mae program allowing first-time homebuyers to purchase with just 3% down. It requires at least one borrower to be a first-time homebuyer, credit scores of 620+, and homebuyer education when all occupying borrowers are first-time buyers — but unlike HomeReady or Home Possible, it has no program income limit. It's an alternative to FHA with no upfront mortgage insurance premium and automatic PMI cancellation.
HomeReady (Fannie Mae) and Home Possible (Freddie Mac) are low-down-payment conventional loans (3% down) designed for low-to-moderate income borrowers. They offer flexible income sources, including rental income from roommates, and reduced PMI costs compared to standard conventional loans.
Texana Bank Mortgage uses a soft credit inquiry for pre-qualification, which has zero impact on your credit score. A hard inquiry only occurs when you formally apply and move forward with a full application. Multiple mortgage inquiries within a 14-45 day window count as a single inquiry for scoring purposes.
Reviews
What Borrowers Say About Texana Bank
Real reviews from real borrowers. See why homeowners trust Texana Bank Mortgage.
Texana Bank helped me with the purchase of my third home, and honestly, the experience was the smoothest of all three home purchases. I only worked with Lynette, but she was friendly, helpful, and courteous at all times. She was extremely patient with me, and she took time to answer all my questions. Even more impressive is that the bank worked with me through a challenging employment situation. Never once was I made to feel bad about asking questions, and Lynette's responses were lightning fast. This was one of the best experiences I have ever had with any company, bar none. I highly recommend Texana Bank to anyone.
M
Mikayla Irwin
★★★★★
Lynette Heck is the best to work with. No matter what we needed, she was on top of it and thinking of things way before we needed it! We really appreciate everything she did for us!
M
Mark Sherrard
★★★★★
Overdue but thanks again Adam, I appreciate you going above and beyond to make sure my family got our dream home. 10 stars.
C
Carson Romero
★★★★★
My experience with Lynette was the best and easiest experience it could’ve possibly been when being a first time home buyer. She’s very kind, communicative, reliable, and so much more! It made the whole process that much less stressful and overwhelming. So blessed to have had her on my side!
Z
Zane Atkins
★★★★★
Parker McMahan has helped us with 3 mortgages and a refi in part few years. Always great service-always honest advice. Texana will be my “go to” for mortgage advice and activity from here on. They are also great in the area of VA home loans.
G
Gary McDay
★★★★★
I had an excellent experience working with my texana bank mortgage from start to finish. They were extremely professional, knowledgeable, responsive, and made the entire mortgage process feel much easier than I expected.
They took the time to explain everything clearly, answered all of my questions, and kept me informed throughout the entire process. I always felt like I had someone in my corner who genuinely cared about helping me reach my goals.
If you’re looking for a mortgage broker who is trustworthy, dependable, and willing to go the extra mile for their clients, I highly recommend them. I truly appreciate all of their hard work and would definitely work with them again!
K
Kent Sisco
★★★★★
Adam McCormick is fantastic! Easy to work with and keep me informed every step of the way! Looking forward to working with him again in the future
A
Andrea Ferrell
★★★★★
Adam was phenomenal from start to finish! He was friendly and professional. He assisted me every step of the way, walking me through the process with ease. He was always there for whatever questions I had. He was very, very patient and always reached out to me in a timely manner if I contacted him and he was unavailable at the time. Moreover, he made me feel as if he cared for more than just my loan, but me as a person!!! Texana is blessed to have him as an associate!!
Andrea
C
Clay Ragsdale
★★★★★
Where to really start. Adam walked me through everything and put me at ease. I have had some bad experiences with other companies so I was digging and looking for any red flag. There was none with him and his direct talk is what did it for me. Someone that is real and just says what it is. No false hope or misdirection at anytime.
I would recommend him to anyone and definitely Someone looking for honesty and caring. The communication is top notch and a true professional.
Respectfully,
Clay
B
Belvia Lynn
★★★★★
My overall experience while working with Adam McCormick was excellent. He was very pleasant and professional.
J
Joseph Hardman
★★★★★
Adam McCormick is an absolute professional in every sense of the word. I will NEVER use any other loan officer for my financials other than Adam as long as he is in the business. His work as my loan officer was exceptional. Throughout the process, he always responded to an e-mail, responded to a text, called right back if not answering immediately. He always made you feel as though you were his only client. There was never the impression he had more important things to do other than speak with you. He worked with us through a death in the family, personal issues, and numerous other challenges. It's possible other loan officers would have given up on us during this process, but Adam stuck with us through it all. His work ethic is amazing. He is an expert in his craft. I could not possibly give a higher recommendation, he has redefined what right looks like in this business.
M
Marsha Kessler-Bradshaw
★★★★★
I was about to go with another company for this refinance no cash out until I received a call from this Adam McCormick. He was so knowledgeable and made me feel very comfortable with this process. Adam is knowledgeable ,courteous, understanding and has a real passion and patience for people. 👍We are at the closing. Thank you Adam McCormick!!
P
Peter Jenkins
★★★★★
My situation had its difficulties. Justin was confident and persistent through the process and we the got the result
D
Dale Samuel
★★★★★
Mark has been very professional and has been very respectful to my wife and myself.
Mark has shown that genuine human qualities and really worked with us and for us.
This actually been a pleasure to get to know Mark.
J
James Fields
★★★★★
Outstanding Service and support from a truly Customer Oriented Agent! My pleasure to have worked with Mr. MCcormick.! Would follow him to next source if necessary. He is concerned in an outstanding balanced way. My pleasure to?know and do Business with him and The Bank!
JFields
R
Rose Stone-Stewart
★★★★★
Texana Bank was there for us throughout the entire process. Their personableness, as well, their professionalism. As a financial institution it was nice to know that while obtaining a loan, we had a safe place to relay. They are absolutely “by the book” and at the same time makes the process easier to participate. The hospitality and genuine concern as clients was overwhelming of which we will always consider Texana Bank first, before mostly any other financial institution.
M
Mitchell Morris
★★★★★
Greg was awesome and the process was simple. I have nothing but the highest praise for the process and for Greg himself. Thank you.
R
Ronald Bylsma
★★★★★
Best refi experience of our lives, Andre was very knowledgeable and always kept us calm when things got stressful. Would recommend Mr. Andre Floyd to anyone looking for a great lending officer!
Ready to Get Started?
Whether you're buying your first home, upgrading, or refinancing to better terms, our conventional loan specialists can help you find the right fit.
