While there are many different types of home loans available to prospective homebuyers in Dallas, San Antonio, Houston, Austin, McKinney, Allen, Plano, TX, and other communities throughout Texas, for many homebuyers, conventional mortgages remain the lending product of choice.
What is a Conventional Loan?
If you are financing within the current Fannie Mae and Freddie Mac conforming loan limits, you are applying for what is known as a “conforming loan” or “conventional loan.”
For those interested in buying property in Cedar Valley, Wylie, Flower Mound, Timberwood Park, TX, or any of the surrounding cities, we have provided conventional loan limits below. If you are shopping for a home which will require you to borrow above those loan limits, you can apply for a jumbo mortgage.
What are the Conventional Loan Limits?
The body that sets the conforming loan limits for Fannie Mae and Freddie Mac is the Federal Housing Finance Agency (FHFA).
This agency announced that in 2020, conventional loan limits will increase in Texas and throughout the US.
Below are the conforming loan limits specific for Dallas County:
These conforming loan limits are a match for those in most parts of the country.
For comparison, $484,350 was the conventional loan limit for a one unit home in most parts of the country at the 2019. So the increase to $510,400 is a significant one, and a great boon for homebuyers in Dallas and throughout the state.
Who Qualifies for a Conventional Mortgage in Texas?
To purchase a home using a conventional mortgage, you already know that you cannot finance above the conventional loan limits.
You will also need to order an appraisal of the property you wish to purchase.
The following personal factors can impact your qualification:
- Your credit score.
- Your debt-to-income (DTI) ratio.
- Your income level.
- Your employment status, industry, and career path.
- How much you can afford to put down on the home.
Down payments for conventional loans can be as low as 3% for some qualifying homebuyers.