Conventional Loans

Conventional Loans

While financing through the VA, FHA or USDA is the right choice for some homebuyers, conventional mortgages offered by private mortgage loan lenders in Waxahachie are more popular. In fact, the majority of mortgages in the north central Texas market are conventional.

Why is this? To begin with, nearly any property can be financed with a conventional home loan, and for those who qualify, there’s no maximum mortgage limit. Plus, if a borrower puts 20 percent down or builds up that much in equity, private mortgage insurance isn’t required – and avoiding PMI can save thousands of dollars over the life of a loan.

Conventional mortgages are also more flexible than government-backed home loans. Fixed-rate mortgages and adjustable-rate options are available, and borrowers can choose from a variety of term lengths. And with less paperwork involved, conventional loans can be obtained more quickly than VA, FHA, or USDA financing. As such, when Waxahachie homes have multiple offers, sellers tend to favor borrowers with conventional loans.

Mortgage lenders take a greater risk with conventional financing since it isn’t guaranteed by a government agency. Therefore, borrowers must meet stricter income and credit standards to qualify. That said, getting approved isn’t as difficult as many people think – a stable monthly income, a decent credit score and a somewhat low debt-to-income ratio is what lenders look for in a conventional mortgage candidate.

Whether you’re a first-time homebuyer or want to buy a second home or investment property in Waxahachie, Texas, a conventional loan may be the way to go. The mortgage professionals at PRMI can help you find the best financing solution. Contact our mortgage company in Waxahachie today!