Conventional Loans

The Loan That Drops PMI.
That Alone Changes the Math.

Conventional loans let you cancel mortgage insurance once you hit 80% equity. FHA doesn't. If you have 620+ credit and even 3% down, this might be the smarter long-term play.

Why Conventional?

Not everyone should go FHA. Here is when Conventional wins.

PMI Drops Off at 80% LTV

Once your equity hits 20%, PMI is gone. FHA MIP stays for life. That saves $100-300/month long-term.

As Low as 3% Down

First-time buyers can put 3% down. 5% is common. 10% drops PMI. 20% kills it entirely.

Higher Loan Limits

Conforming limit is $766,550 in most areas. Higher than FHA.

Better Rates at 740+

High credit scores get the best pricing. At 740+, Conventional often beats FHA.

Investment Properties

Unlike FHA, Conventional allows investment properties and second homes.

Buydown Option

Use seller concessions to fund a 2-1 or 1-0 buydown. Lower your rate for the first 1-2 years. See buydown calculator →

Refi-from-FHA Play

Already FHA? Once you hit 80% LTV, refi to Conventional and drop MIP entirely.

Conventional PMI Comparison

See 5%, 10%, and 20% down side by side.

Conventional vs FHA

Quick guide to choosing.

Choose Conventional If...

620+ credit (740+ for best rates). 5-20% down. Want PMI to drop off. Investment property. Refinancing from FHA.

Choose FHA If...

580-619 credit. Need DPA. Higher DTI (FHA allows up to 57%). Need manual underwriting. See FHA + DPA page →

Questions I Hear Every Week

When exactly does PMI drop off?
Automatically at 78% of original purchase price. You can request at 80%. Or get a new appraisal — if the home appreciated and you're at 80% of current value, PMI can drop early.
Should I refi from FHA to Conventional?
If you have 20%+ equity and 620+ credit — yes. Dropping MIP usually saves $150-250/month. Closing costs on the refi typically pay for themselves in 12-18 months.
Can I use DPA with Conventional?
Yes. The Texas State Grant works with Conventional — up to 5% non-repayable. See FHA + DPA page for details.
What credit score do I need?
620 minimum. But pricing jumps at 680, 700, 720, 740. At 740+ you get the best available rates.

Not Sure Which Loan Is Right?

Call me. I'll run FHA and Conventional side by side for your situation.

☎ Call 832-701-8144Book a Strategy Session