Dallas Home Loans
Conventional home loans in Texas are the most common types of home mortgages and are insured by either Fannie Mae or Freddie Mac. Since VA and FHA home loans tend to come with strict rules, it should come as no surprise to learn that conventional home loans see more use. Like their name suggests, said loans are not insured by the federal government, meaning that they have to be insured by private insurers willing to take on the risk. As a result, conventional home mortgages in Dallas are much riskier for lenders than their government-backed counterparts, which has a significant effect on their interest rates, their loan terms, and the rest of their borrowing conditions. Something that would-be homeowners in Dallas need to consider before taking out Dallas conventional home loans. To understand the hurdles to taking out Dallas conventional home loans, would-be homeowners in Dallas need to understand that each loan comes with a chance that the lender will lose its investment. Since conventional home loans come with higher risks, lenders have to set higher interest rates, higher credit requirements, and higher income requirements to make them worthwhile compared to their government-backed counterparts. In other words, would-be homeowners in Dallas interested in Dallas conventional home loans have to convince Dallas lenders based on their own creditworthiness, whereas those interested in government-backed home loans can count on government backing to make up for part of the slack.
- 20% Down Payment
- Up to $417,000 Loan Value
- Lower Mortgage Insurance
- 2nd Homes & Investment Properties
- Lower Rates & Better Terms
- Not Guaranteed by the Government
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More About Dallas Conventional Home Loans
The qualifying criteria for a government-backed loan and a conventional loan aren’t much different, but conventional loans are likely to be harder to get and more stringent on qualifications. However, it is important to note that a conventional mortgage in Dallas has more than enough upsides to make up for their harsher borrowing conditions. For starters, conventional home loans come with far fewer restrictions on their usage, meaning that borrowers can use them to fund a much wider range of purchases. In fact, a conventional mortgage in Dallas can even be used to invest in rental properties, which is something that fall far outside of the intended purpose of VA and FHA home loans. In the end, both kinds of home loans have their respective upsides and downsides, meaning that each would-be homeowner in Dallas has to make their choice based on what matters most to them.