Conventional Loans in the Austin Market
For 2026, the conforming loan limit in Travis County (and all Texas counties) is $832,750 for a single-family home. That means most buyers in Austin neighborhoods like Mueller, Circle C, Pflugerville, and Cedar Park can finance their purchase with a conventional loan and take advantage of competitive rates without jumping into jumbo loan territory.
Austin’s housing market continues to offer strong opportunities for buyers with good credit and stable income. Whether you are eyeing a starter home in East Austin, a family home in Round Rock, or a move-up property in Avery Ranch, a conventional loan gives you the flexibility to choose your down payment, avoid permanent mortgage insurance, and lock in predictable monthly payments.
As an Austin-based mortgage broker, we know the local market inside and out. We can help you understand how the current conforming loan limit works in your favor and walk you through your options at wholesale pricing. Reach out today to see how a conventional loan fits your homebuying goals.
Conventional Loans in Austin, TX
Conventional loans are the most popular mortgage option in America, and for good reason. Competitive rates, flexible terms, and no permanent mortgage insurance make them a smart choice for qualified buyers.
What Is a Conventional Loan?
A conventional loan is a mortgage that is not backed by a government agency like FHA, VA, or USDA. Instead, these loans follow guidelines set by Fannie Mae and Freddie Mac, which means they are available through most lenders and offer a wide range of options to fit your situation.
Conventional loans are ideal for buyers with strong credit, stable income, and a desire for competitive rates with long-term flexibility. Most conventional loans are “conforming,” meaning they fall within standard loan limits. For higher-priced properties, non-conforming (jumbo) options are also available.
At Mortgage Austin, we help you understand exactly how a conventional loan works, what it costs, and whether it is the right fit for your goals. We walk you through the process from prequalification to closing, keeping things clear and straightforward along the way.
Key Benefits of Conventional Loans
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Competitive Rates
With good credit (700+), conventional loans typically offer some of the most competitive interest rates available, especially through wholesale pricing.
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Flexible Terms
Choose from 15, 20, or 30-year loan terms to match your budget and financial goals. Shorter terms build equity faster; longer terms keep monthly payments lower.
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PMI Removal
Unlike FHA loans, private mortgage insurance (PMI) on conventional loans drops off automatically once you reach 80% loan-to-value. That means lower payments over time.
General Conventional Loan Requirements
Conventional loans follow Fannie Mae and Freddie Mac guidelines, and individual lender requirements may vary. Here is a general overview of what to expect:
✓ Credit score: Typically 620 or higher to qualify, but the best rates and terms are generally available at 740+.
✓ Down payment: As low as 3% for first-time buyers, or up to 20% to avoid PMI entirely.
✓ Employment: Stable, verifiable employment history, typically two years in the same field.
✓ Debt-to-income ratio: Generally under 45%, though some exceptions may apply with strong compensating factors.
✓ Property types: Primary residences, second homes, and investment properties are all eligible.
Not sure if conventional is the right fit? We can compare it side by side with FHA, VA, or other options. Upload a competitor’s Loan Estimate through our Second Look program and see how wholesale pricing stacks up.
Frequently Asked Questions
Ready to Explore Conventional Loans?
No pressure, no obligation. Let us walk you through your options and find the right fit for your situation.
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