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Conventional loans in Austin, Texas

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Conventional Home Loans

Conventional home loans are the most popular mortgage product in Texas.

For Austin home buyers, there's a large mix of low- and no-downpayment mortgages from which to choose. Conventional mortgages are loans underwritten and insured by private lenders and investors instead of mortgages that are government backed like FHA Loans and VA Home Loans.

Conventional loans are "conforming" if they are generally $484,350 or less for a single-family home. There are also established guidelines for borrower credit scores, income requirements and minimum down payments. For example, most conventional loans require somewhere between 3 percent and 20 percent down.

Conventional Refinance

Homeowners in Austin with existing mortgages may be eligible to refinance their current home loan using a conventional refinance loan.

The Conventional Refinance Loan allows Texas homeowners who have a existing home loan to refinance and take advantage of lower mortgage interest rates and lower monthly payments, shortened or lengthened loan terms. You can also refinance an adjustable rate mortgage (ARM) into a fixed rate mortgage.

We offer great low rates on Conventional Loans for borrowers in the Austin area.

What are Conventional Loan terms?

They can be for a variety of terms ranging from 15 to 40 years, and they can have Fixed Rate or Adjustable Rates. Conventional loans with less than 20% down require PMI (Private Mortgage Insurance).


Conventional loans may be conforming or non-conforming.

Conforming loans means that they meet the stipulations set forth by Fannie Mae and or Freddie Mac. Non Conforming loans will not meet thoes stipulations (such as credit quality, loan-to-value ratio or loan amount).


Conventional Mortgage Loan Advantages

  • No mortgage insurance requirement if 80% LTV or lower
  • More loan program options are avaliable
  • Lower FICO Credit Score programs verses FHA and VA Loans
  • Can cancel existing mortgage insurance at 80% LTV
  • Can be used on all property and occupancy types
  • Can hold numerous conventional loans
  • No maximum loan limit and conforming limit higher than the FHA loan limits

Documents needed for a Conventional Loan

  • Most recent 30 days’ pay stubs (if W-2 income)
  • Last 3 months’ bank statements (all accounts, all pages)
  • Savings/Mutual fund statements (3 months)
  • If Self-Employed will need Three years Tax Returns and YTD Profit & Loss Statement, signed & dated
  • Previous two years' Tax Returns
  • Previous two years’ W-2 Forms (if W-2 income)
  • Divorce Decree (if applicable)
  • Bankruptcy discharge documents (if applicable)
  • Should you have no credit. Copies or your most recent utility bills will be needed (if applicable)
  • If you co-signed for a mortgage, car, credit card, etc, need 12 months cancelled checks. front and rear, indicating you are not making payments (if applicable)
  • Copy of Driver’s License
  • Copy of Social Security Card
  • Sales Contract

Documents needed for a Conventional Refinance

  • Most recent 30 days’ pay stubs (if W-2 income)
  • Last 3 months’ bank statements (all accounts, all pages)
  • Savings/Mutual fund statements (3 months)
  • Previous two years’ Tax Returns, signed & dated (if self-employed)
  • Previous two years' Tax Returns
  • Previous two years’ W-2 Forms (if W-2 income)
  • Homeowners’ Insurance Policy Declarations Page
  • Current Mortgage Statement
  • Note
  • Deed of Trust
  • Survey and Settlement Statement (HUD-1) or CD (Closing Disclosure)
  • Divorce Decree (if applicable)
  • Bankruptcy discharge documents (if applicable)

The Note, Deed of Trust, Survey and Settlement Statement (HUD-1) should be in the package of documents provided to you by the title company when you closed your current loan.

Getting approved for a mortgage is simple


Every client's situation is different and handled with a unique, personalized approach. As a Mortgage Broker serving Austin, Texas we focus on getting the right loan at the right rate for our client and it allows us to secure often hard-to-find financing.

Contact your Austin, Texas area home loan specialist at 210-656-1134.

Grove Mortgage Home Loans of Austin