Conventional Loans

Conventional mortgages are the most common types of home loans in Houston and are insured by either Fannie Mae or Freddie Mac. Conventional mortgages can be both fixed mortgages or adjustable rate mortgages.

Conventional loans with less than 20% down require private mortgage insurance (commonly referred to as PMI). Since conventional loans are not guaranteed by a government agency such as Federal Housing Administration (FHA) and the Department of Veteran Affairs (VA), there is no guarantee for the lender should the borrower default. This presents a higher risk for lenders and generally have more restrictive guidelines than government backed mortgages like FHA mortgages, USDA mortgages or VA mortgages.