Conventional Loans in Houston
Fannie Mae and Freddie Mac set the rules, and your credit score drives your pricing. We show you where your score puts you today and what could move it, and walk you through down payment options and PMI that comes off as you build equity.
- 3%
- down for eligible buyers on some programs
- 20%
- down avoids PMI, and PMI comes off as equity grows
- $832,750
- conforming limit for one unit in 2026, including Harris County
- 5.0 on Google from 300+ reviews
- NMLS #2532048
- English and Spanish, start to finish
What is a conventional loan?
A conventional loan is a mortgage that is not insured by a government agency. Most follow Fannie Mae and Freddie Mac guidelines. Fannie Mae's automated underwriting no longer sets a fixed minimum score, but many lenders still use their own floor, and stronger scores unlock better pricing around 680 and 740.
Conventional loans are the most common mortgage type in the country. Because no government agency insures the lender, your credit profile carries more weight: pricing generally improves as scores rise through tiers around 680 and 740.
Putting down less than 20% usually means private mortgage insurance, called PMI. Unlike FHA insurance, PMI can be removed once you build enough equity, which is one reason buyers with stronger credit often start conventional or refinance into it later.
Conventional at a glance (2026)
| Credit score | No fixed minimum from Fannie Mae's automated underwriting; many lenders set their own floor, and pricing improves in tiers around 680 and 740 |
|---|---|
| Down payment | As little as 3% for eligible buyers on some Fannie Mae and Freddie Mac programs; 20% avoids PMI |
| Mortgage insurance | PMI required under 20% down, removable as equity grows |
| Loan limit | $832,750 baseline conforming limit for a one-unit home in 2026, including Harris County |
| Property types | Primary homes, second homes, and investment properties |
Who conventional often fits
- Buyers with established credit who want the best pricing tiers
- Buyers who want mortgage insurance that can be removed
- Move-up buyers, second-home buyers, and some investors
Frequently asked questions
- What credit score do I need for a conventional loan?
- Fannie Mae removed its fixed minimum score from automated underwriting on November 16, 2025. Many lenders still use their own floor, so the practical answer depends on the lender. Stronger scores unlock better pricing tiers, typically around 680 and again around 740, and can lower PMI costs. A licensed loan officer can show how your score maps to your options.
- Do I need 20% down for a conventional loan?
- No. Eligible buyers can put down as little as 3% on some Fannie Mae and Freddie Mac programs. Putting down less than 20% adds PMI, which can later be removed as you build equity, so the 20% figure is a cost decision rather than a requirement.
- When does PMI come off a conventional loan?
- If the home is your principal residence, under the federal Homeowners Protection Act you can generally request PMI cancellation once your balance is scheduled to reach, or you pay it down to, 80% of the home's original value and you meet other conditions. PMI ends automatically on the date your balance is scheduled to reach 78% of the original value, if payments are current. If your home value rises, some lenders let you request earlier cancellation with a new appraisal, based on their own rules.
- What is the conforming loan limit for 2026?
- The FHFA baseline conforming limit for a one-unit home is $832,750 for 2026, and that figure applies in Harris County and most of Texas. Loans above the limit are jumbo loans, which follow separate lender-set guidelines.
- Is a conventional loan better than FHA?
- Neither is better for everyone. FHA is generally more flexible on credit but carries longer-lasting mortgage insurance. FHA's minimum down payment is 3.5% with qualifying credit, and some conventional programs allow 3%, so FHA is not always the lower down payment. Conventional generally rewards stronger credit with removable PMI. The right fit depends on your credit, savings, and plans, which a licensed loan officer can review with you.
Keep reading
- What credit score do you need to buy a house in Texas?
- Down payment assistance programs Houston buyers can use
- Jumbo loans
- Can rent and utility payments help you qualify?
Educational content only. This page is not financial, legal, or tax advice, a commitment to lend, or an offer of credit. Program requirements and terms vary by lender and change over time; figures cited reflect the sources below as of the dates noted, and eligibility always depends on your full financial profile. Warens Financial Group, NMLS #2532048. Equal Housing Opportunity.
Down payment assistance and grants
We work with SETH (Southeast Texas Housing Finance Corporation), TDHCA (Texas Department of Housing and Community Affairs), and other Texas down payment assistance programs and grants through our partners. Eligible buyers also have 0% down options with VA and USDA loans. Ask us which assistance programs you qualify for.
Reading is a start. Knowing where you stand is better.
Every situation is different. Our licensed Houston team can look at your credit, budget, and goals and tell you which programs may fit, en inglés o en español. Free, no obligation, and not a commitment to lend.