Conventional loans in San Antonio

What a conventional loan is

A conventional loan is any mortgage that isn't backed by a government agency like FHA, VA or USDA. Most follow the rules of Fannie Mae and Freddie Mac, which buy loans from lenders, so you'll also hear them called conforming loans.

Because there's no government guarantee, the rules lean more on your credit and down payment. In exchange you get more flexibility: no upfront mortgage insurance fee, PMI that comes off over time, and the option to buy a second home or rental.

How much you need down

Not 20%. That's the number that avoids mortgage insurance, not the minimum. Here are the real minimums for a home you'll live in:

• 3% down: if at least one buyer is a first-time buyer (no home owned in the last three years), or through Fannie Mae's HomeReady or Freddie Mac's Home Possible if your income is at or below 80% of the area median.
• 5% down: for everyone else, with no income limit.
• 20% down: no mortgage insurance at all.

On a $300,000 home, 3% down is $9,000 and 5% down is $15,000. Plan for closing costs on top of that. My conventional calculator shows your full payment, including PMI, taxes and insurance.

Credit and debt

In November 2025, Fannie Mae removed its long-standing 620 minimum score for loans run through its automated underwriting, joining Freddie Mac. That doesn't mean any score gets approved:

• Most lenders and mortgage insurers still look for about 620 or higher. This is one reason comparing lenders matters.
• Your score sets your price. Conventional rates and PMI are priced by credit score and down payment, so 740 pays noticeably less than 660 on the same loan.
• Debt-to-income (how much of your income goes to debts) is reviewed alongside your savings, job history and the rest of the file. Strong savings can offset a higher ratio.

If your score is below where you want it, we can make a plan to get there. Paying down a high card balance before applying is often one of the quickest ways to raise it.

The 2026 limit in Bexar County

For 2026, the conforming loan limit for a one-unit home in Bexar County is $832,750, the same as most of the country. A duplex can go up to $1,066,250. Loans above the limit are jumbo loans, which have their own, stricter rules.

The Federal Housing Finance Agency announces next year's limits in late November, so I'll update this page when they change.

PMI and how to get rid of it

With less than 20% down, a conventional loan comes with private mortgage insurance (PMI), usually as a monthly charge built into your payment. Unlike FHA, there's no upfront mortgage insurance fee. How much PMI costs depends mostly on your credit score and down payment.

The best part is that it doesn't last forever. Under federal law, for a home you live in:

• You can ask to cancel it once your balance reaches 80% of your home's original value, if you're current on payments with a good history.
• It comes off automatically when your balance is scheduled to reach 78% of the original value.

Paying a little extra toward principal gets you there sooner. My mortgage payoff calculator shows how much sooner.

Watch: what paying extra really does

Conventional or FHA?

I run both for almost every buyer, because the cheaper one depends on your numbers:

Conventional usually wins with strong credit, or if you'll reach 20% equity quickly. FHA often wins with lower scores or higher debts. My FHA guide covers the other side.

Watch: FHA vs conventional, real numbers

Gifts, seller help and down payment assistance

• Gifts: your down payment can be a documented gift, for example from a parent.
• Seller help: on a home you'll live in, the seller can pay up to 3% of the price toward your costs with less than 10% down, 6% with 10% to just under 25% down, and 9% with 25% or more down.
• Down payment assistance: the TSAHC programs I offer work with conventional loans at a 640 or higher credit score. See my first-time buyer guide for how they work.

Second homes and rentals

Conventional is the go-to loan when the home isn't your main residence:

• Second home: at least 10% down, one unit only, and it has to be a real second home you use, not a rental.
• Rental property: at least 15% down for a single-family rental, or 25% for 2 to 4 units. Seller help is capped at 2%. Investors who'd rather qualify on the rent than their tax returns can use a DSCR loan.
• Taking cash out of your home? In Texas, that follows special constitutional rules. See my Texas cash-out refinance guide.
• Self-employed? Conventional uses your tax returns. If those understate what you earn, a bank statement loan may fit better. Here's one client who went that route.