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Conventional Home Loans in Texas

What Is a Conventional Loan?

Conventional home loans are the most common type of loan for home purchases. While these private-sector loans are not backed by the government, they do follow the guidelines set by federally-backed mortgage institutions Fannie Mae and Freddie Mac.

Since there is no guarantee to the lender if the borrower defaults on a home loan, conventional loans often carry stricter requirements for approval than government-backed programs such as FHA and VA loans. Conventional mortgages can be very affordable over the long term if the borrower has good credit and enough cash on hand for a down payment.

Benefits of Conventional Home Loans in Texas

Conventional mortgages offer a range of benefits to home buyers. Those opting for a conventional home loan in Texas can take advantage of lower interest rates and more flexible terms and — if they can pay at least 20% down — forgo paying private mortgage insurance (PMI) over the entire lifetime of the loan.

Types of Conventional Loans
You’re considering applying for a conventional home loan — now what? First, it’s important to understand the different types of conventional loans. The two most popular conventional mortgages are fixed rate loans and adjustable rate mortgages (ARMs).

There are two key differences between fixed rate loans and ARMs:

  1. Interest rate: While fixed rate loans have a set interest rate that won’t change over the lifetime of the loan, adjustable rate mortgages can vary over time, either rising or falling depending on the interest rate index.
  2. Loan qualification: Qualifying for an ARM may be easier than qualifying for a fixed rate mortgage, especially for borrowers with higher debt-to-income (DTI) ratios.
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Why Blue Water Mortgage?
No Surprises
No Surprises
With over 150 years of collective experience, our mortgage brokers have seen it all. This level of expertise enables us to anticipate and quickly resolve any issues that might arise and close on time, every time.
Personalized Services
Personalized Services
Buying a home is one of the biggest purchases you’ll make in your entire life. That’s why our brokers are available via phone 24/7 to address any concerns or answer any questions you might have about the mortgage process.
Competitive Rates
Competitive Rates
Blue Water is locally owned, so we aren’t beholden to banks. That means we’re able to offer a more diverse portfolio of mortgage products tailored to your specific needs, as well as more competitive rates and lower closing costs.
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The Mortgage Process

Blue Water’s mortgage loan process timeline involves a series of five steps, some of which require sitting down with one of our experts to analyze all aspects of your financial health. Here’s what you can expect:
Getting to Know You & Getting On Track
In our first meeting, we’ll answer your questions and talk about the programs we offer that would best fit your situation.
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Getting Pre-Qualified
The next step in the mortgage loan process is applying for pre-qualification, which enables us to confidentially verify your credit, income, assets, and liabilities.
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Assessing Loan Programs & Rates
At this point, we’ll start to sort through and evaluate which mortgage best fits your needs.
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Obtaining Loan Approval
Once you’ve submitted your loan application, we’ll work with our lenders to help find you the best rate and most favorable terms possible.
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Closing the Loan
After your loan is approved, we’ll review the details once more to make sure you feel confident about the financial commitment you are about to make. Once all of your questions are answered, we will schedule a closing.
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Home Loan Resources

10 Questions to Ask When Buying a Home
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Please be advised that your actual rate, payment, and cost could be higher. Get an official Loan Estimate before choosing a loan. This estimate is provided for informational purposes ONLY, to assist you in determining an estimate of cash that may be required to close and an estimate of your proposed monthly mortgage payment. Actual charges may be more or less, and your transaction may not involve a fee for every item listed.

Rate and APR based on the following assumptions: Purchase Price of $250,000, loan amount of $200,000, 75% loan to value, 780 credit score, single family property, primary residence, escrowing taxes and insurance, debt ratio within program guidelines.

Rates posted are effective as of 9/24/2024.