Conventional Loans in Lewisville TX
Conventional loans in Lewisville, TX offer flexible terms, competitive rates, and no upfront mortgage insurance, making them a top choice for qualified buyers in Denton County and the greater Dallas–Fort Worth area. Call 972-466-2551 to review your scenario.
Conventional loan: a mortgage not backed by a government agency, underwritten to Fannie Mae or Freddie Mac guidelines, typically requiring private mortgage insurance above 80% loan-to-value.
How do conventional loans work in Lewisville, Texas?
Conventional loans follow Fannie Mae and Freddie Mac guidelines, which means they reward strong credit and documented income with the lowest long-term costs of any purchase program. The tradeoffs are real: PMI applies above 80% loan-to-value, and the documentation bar is stricter than FHA or VA.
What do conventional rates look like right now?
How do conventional loans compare to jumbo loans?
| Factor | Conventional | Jumbo |
|---|---|---|
| Loan size | At or below the conforming limit ($832,750 for 2026 in most Texas counties) | Above the conforming limit |
| Guidelines | Fannie Mae and Freddie Mac agency rules | Individual lender portfolio rules |
| Typical down payment | 3% to 20%+ | 10% to 20%+ |
| Mortgage insurance | PMI above 80% loan-to-value | Usually none, offset by stricter credit and reserve standards |
Use our County Loan Limit Lookup Texas tool to check your county's exact 2026 conforming limit before you shop.
Do you need 20% down to get a conventional loan?
No. Conventional programs start at 3% down for qualified first-time buyers through HomeReady and Home Possible, and at 5% for most other purchases. Below 20%, private mortgage insurance applies, adding roughly 0.5% to 1.5% of the loan amount per year depending on credit and leverage. PMI cancels as equity builds, which is the key advantage over FHA's permanent mortgage insurance. If conventional down payment rules do not fit your situation, compare physician mortgage loans in Texas, which are built for medical professionals early in their careers and often skip mortgage insurance.
What are the credit score rules in 2026?
Fannie Mae's DU 12.0, effective November 2025, removed the old minimum credit score requirement for its automated system, so no-score borrowers can now qualify on nontraditional credit. In practice, most lenders apply overlays in the 620 to 640 range, and the strongest pricing starts in the mid-700s. Recent major credit events follow standard waiting periods. The honest answer for your file comes from a same-day review.
What do conventional loans cost each month?
Worked example, clearly illustrative and not a quote. A $350,000 Lewisville purchase with 10% down at 7.03% on a 30-year fixed produces a loan of $315,000 with principal and interest of about $2,382 per month, before taxes, insurance, and PMI. Adding an illustrative 0.80% PMI factor adds roughly $210 per month, removable once you cross 80% equity.
| Down payment | Loan amount | Est. P&I at 7.03% |
|---|---|---|
| 5% ($17,500) | $332,500 | about $2,248/month |
| 10% ($35,000) | $315,000 | about $2,382/month |
| 20% ($70,000) | $280,000 | about $2,117/month |
Taxes, insurance, and PMI are extra, and rates move daily. Ask for a written quote on your scenario.
Conventional Loans FAQ
A conventional loan is a mortgage not backed by a government agency like FHA, VA, or USDA. These loans follow Fannie Mae or Freddie Mac guidelines and are ideal for buyers with good credit and stable income, with down payments starting at 3% and PMI applying above 80% loan-to-value.
Yes, when the loan exceeds 80% of the home's value. PMI typically costs 0.5% to 1.5% of the loan amount per year and cancels once you reach 20% equity, either by request at 80% loan-to-value or automatically at 78%. Putting 20% down avoids PMI entirely.
Rates depend on credit score, down payment, loan size, and market conditions. As of September 2026, Freddie Mac's benchmark survey showed 7.03% and Mortgage News Daily showed 7.49%. Strong files with larger down payments price below weaker files. Get a written quote for your exact scenario.
No, conventional loans are not government-backed, but they follow standards set by government-sponsored enterprises Fannie Mae and Freddie Mac. FHA, VA, and USDA loans are the government-insured options, each with its own eligibility rules and insurance costs.
Agency automated systems no longer enforce a hard minimum as of 2026, though most lender overlays sit near 620 to 640. The strongest pricing starts in the mid-700s, and recent major credit events follow standard waiting periods. A same-day review gives you the real answer.
Call 972-466-2551 or text 713-955-4685 for a same-day review, or start your application online. We will confirm your price range, estimate cash to close, and compare conventional against FHA, VA, and USDA on your actual numbers.
- FHA Loans: 3.5% down with more forgiving credit.
- VA Loan Eligibility Texas: zero-down options for veterans.
- USDA Loan Eligibility Texas: zero down in eligible areas.
- Physician Mortgage Loans Texas: specialty low-down programs.
- Jumbo Loans: financing above the conforming limit.
- County Loan Limit Lookup Texas: 2026 limits by county.
- Mortgage Application Process in Texas: timelines and what to expect.
- Get Pre-Approved Texas: your numbers, same day.