VA Approved Lender | Grove Mortgage LLC | NMLS License # 396191
Providing home mortgage loans in San Antonio and throughout Texas.
210-656-1134

Conventional Loans

Conventional Loan facts

For San Antonio home buyers, there's a large mix of low- and no-downpayment mortgages from which to choose. Conventional mortgages are loans underwritten and insured by private lenders and investors instead of mortgages that are government backed like FHA Loans and VA Home Loans.

Conventional loans are "conforming" if they are generally $424,100 or less for a single-family home. Conforming loan limits can be higher in pricier regions of the country. For example, in such states as Alaska and Hawaii, it's $625,500.

A conventional loan is the most common type of mortgage. About 35-50% of mortgages, depending on market conditions and consumer trends are conventional mortgages. They are not insured or guaranteed by the government, thus it's available to anyone meeting the qualification requirements.

There are also established guidelines for borrower credit scores, income requirements and minimum down payments. For example, most conventional loans require somewhere between 5 percent and 20 percent down. Fannie Mae and Freddie Mac offer a 5% down mortgage. The FHA's main product requires just 3.5% down payment. The VA and USDA, qualifying home buyers can buy with no downpayment at all.

Conventional loans may be conforming or non-conforming.

Conforming loans means that they meet the stipulations set forth by Fannie Mae and or Freddie Mac. Non Conforming loans will not meet thoes stipulations (such as credit quality, loan-to-value ratio or loan amount).

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Conventional Mortgage Loan Advantages

  • No mortgage insurance requirement if 80% LTV or lower
  • More loan program options are avaliable
  • Lower FICO Credit Score programs verses FHA and VA Loans
  • Can cancel existing mortgage insurance at 80% LTV
  • Can be used on all property and occupancy types
  • Can hold numerous conventional loans
  • No maximum loan limit and conforming limit higher than the FHA loan limits

What are Conventional Loan terms?

They can be for a variety of terms ranging from 15 to 40 years, and they can have Fixed Rate or Adjustable Rates. Please visit the Loan Programs page for more information on determining which mortgage would be right for you. Conventional loans with less than 20% down require PMI (Private Mortgage Insurance).

Conventional Loans vs FHA Loans.

Conventional mortgage rates are typically lower than an FHA Loan. Conventional financing does not require an upfront mortgage insurance premium when a borrower closes on the loan. With FHA financing, that fee for a 30 year loan is 1.75% of the loan amount.

One drawback to FHA loans is that the loan limits set for FHA loans are typically less than the loan limits for conventional financing ($424,100 in San Antonio, Texas). Currently the FHA Loan limit in San Antonio is $316,250. If a borrower is looking for a mortgage that exceeds the FHA loan limits for the area, the borrower would have to put additional money down on the property or finance under a conventional mortgage.

Please visit our FHA page to learn more about FHA loans in Texas



Why choose Grove Mortgage for your San Antonio home loan?

We are located in San Antonio, Texas and are Licensed Mortgage Broker and a VA Approved lender and have been specializing in VA Loans throughout Texas since 2002.

We can help you accomplish your home purchase or home refinance with expert service, fast closing and very low fees.

To speak with a home loan specialist call
210-656-1134 or
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Find out how much you qualify for with No Cost, No Credit Check, and No Obligation!

We are located in San Antonio, Texas and are Licensed Mortgage Broker and a VA Approved lender and proudly boasts an A+ rating from the Better Business Bureau. Better Business Bureau

San Antonio Home Mortgage Loans