What is the conforming loan limit for a conventional loan in the Austin area?

For 2026, the conforming loan limit for a one-unit home is $832,750 across Travis, Williamson, Hays, Bastrop, and Caldwell counties, per the Federal Housing Finance Agency's published limits for the Austin-Round Rock-San Marcos metro. Borrow above that in these counties and the loan moves into jumbo territory, with different pricing and reserve requirements. I will confirm the current number before you write an offer.

Can I get a conventional loan with less than 20 percent down?

Yes, conventional financing can start as low as 3 percent down for a primary home. The tradeoff is mortgage insurance below 20 percent down, which is a real monthly cost, but it comes off automatically once you reach enough equity, unlike FHA. Whether a smaller down payment or waiting to save more makes sense depends on your specific numbers, which is worth running before you decide.

What credit score do I need for a conventional loan?

There is no single cutoff. Many lenders will consider a conventional loan around 620, but pricing gets meaningfully better as your score climbs, especially above 700. Where you land affects your rate more than whether you qualify at all.

Do all conventional loans require mortgage insurance?

No, only the ones with less than 20 percent down. Once your down payment or your built-up equity reaches that 20 percent mark, mortgage insurance drops off the loan entirely, which is the main reason conventional usually costs less over time than FHA for buyers with solid credit.

Conventional

What is a conventional loan and who is it right for?

A conventional loan is a mortgage that meets Fannie Mae and Freddie Mac guidelines instead of running through a government insurance program. It can start as low as 3 percent down on a primary home, and once you reach 20 percent equity the mortgage insurance falls off for good. It generally works best for buyers with solid credit who want the lowest cost over the life of the loan.

The workhorse

Conventional is the workhorse. For buyers with reasonably clean credit it is usually the cheapest total cost over time, mostly because the mortgage insurance falls off once you have built enough equity, rather than following you for the life of the loan.

The part people miss is that conventional is not one product. Different wholesale lenders price the same borrower differently depending on credit tier, property type, occupancy, and how their pricing looks that week. That is the whole argument for a broker: I am running your file against a panel of more than 40 wholesale lenders instead of handing you one bank's single answer.

Quick facts

Down payment: As low as 3% for a primary home
Credit guidelines: Generally 620+, best pricing above 700
Typical timeline: Typically 30 days from contract to close
Occupancy: Primary, second home, or investment

What it usually takes

Two years of income history, though not always two years at the same job
Credit in reasonable shape, we will look at where you actually stand
Down payment starting around 3 percent for a primary home
Documentation of what is in your accounts and where it came from

Guidelines vary by lender, and I shop across more than 40 of them. Missing one of these is a reason to talk, not a reason to assume the answer is no.

See the estimated math

This is not a commitment to lend. All loans are subject to credit approval, income and property verification. Rates, terms, and programs are subject to change without notice. Nook Lending is powered by MPA Home Loans. Jennifer Ferrara, Loan Officer, NMLS #2781982. MPA Home Loans NMLS #2778343. Equal Housing Opportunity.

Jennifer Ferrara

Loan Officer · NMLS #2781982

Fourteen years navigating real estate deals taught me to listen before I recommend anything. Tell me what you're working with, and let's talk it through.

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Where I Lend

Licensed throughout Texas, and I speak Spanish. Don't see your town? Ask, I am probably still in reach.

Cities I specialize in:

Kyle, TX · Buda, TX · San Marcos, TX · South Austin · Dripping Springs, TX · Driftwood, TX

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Is this loan right for you?

This fits if

Buyers with solid credit who want the lowest long-run cost and want mortgage insurance to eventually go away.

Look elsewhere first if

If your credit is still being rebuilt or your debt-to-income is tight, FHA is usually the easier path in.

Pros

Mortgage insurance drops off automatically at 20% equity
Usually the lowest long-run cost for strong credit
Works for primary homes, second homes, and investment property

Cons

Stricter credit and debt-to-income than FHA
Larger down payment usually needed for the best rate
Mortgage insurance still applies below 20% down

Questions people actually ask

About Conventional

For 2026, the conforming loan limit for a one-unit home is $832,750 across Travis, Williamson, Hays, Bastrop, and Caldwell counties, per the Federal Housing Finance Agency's published limits for the Austin-Round Rock-San Marcos metro. Borrow above that in these counties and the loan moves into jumbo territory, with different pricing and reserve requirements. I will confirm the current number before you write an offer.

Other options

Worth comparing against

Very few files have exactly one right answer. These are the ones that most often come up alongside this.

Wondering if Conventional is right for you?

Send me the specifics and I will tell you what actually fits. If a different program serves you better, that is what I will say.

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What is a conventional loan and who is it right for?

Is this loan right for you?

About Conventional

Worth comparing against

First-Time Homebuyer

FHA

Jumbo

Self-Employed / Bank Statement

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Wondering if Conventional is right for you?