San Antonio blends historic charm with steady job growth, affordable neighborhoods, and robust sectors in the military, healthcare, and technology industries. From established areas like Alamo Heights and Monte Vista to fast-growing suburbs around Bexar County, you’ll find a wide range of price points, making conventional home loans a practical choice when you want low costs, flexible terms, and room to build equity.
Conventional mortgages come in two main forms: conforming and non-conforming. Conforming loans meet the Federal Housing Finance Agency (FHFA) rules. They can be purchased by Fannie Mae or Freddie Mac, typically resulting in lower rates, smaller down payments, and easier PMI cancellation. Non-conforming loans (often called jumbo or portfolio loans) exceed the local conforming limit or fall outside Fannie/Freddie guidelines, giving you higher borrowing power and more tailored underwriting for unique scenarios or higher-priced homes.
A conforming loan is ideal when your price point fits within the FHFA limit for Bexar County and your file aligns with standard guidelines.
Why you’ll like it: You can put as little as 3% down (with qualifying income/credit), choose fixed-rate or adjustable-rate (ARM) options, and remove private mortgage insurance (PMI) once you reach 20% equity. Appraisal waivers and expedited underwriting are possible for strong files, enabling you to close quickly in competitive San Antonio neighborhoods.
Best for: First-time and repeat buyers seeking competitive rates, predictable payments, and the ability to cancel PMI without the upfront mortgage insurance required by FHA.
Non-conforming loans step in when your purchase price exceeds the conforming loan limit or your situation requires custom underwriting (e.g., complex income, substantial assets, or unique property types).
Why you’ll like it: You can finance higher-value homes typical in luxury areas or large-lot properties, access flexible terms, and structure assets/income more creatively than conforming guidelines allow.
Typical expectations: Compared with conforming, you’ll usually see higher minimum credit scores, larger down payments (often 10–20%+), cash-reserve requirements, and tighter debt-to-income (DTI) caps; trading a bit more rigor for the extra borrowing power.
Most lenders typically require a score of 620 or higher, with conforming loans typically starting around 620 or higher; stronger scores can result in improved pricing. Jumbo often requires 680–700+.
As low as 3% for eligible conforming buyers; 5% is the standard. For jumbo loans, a standard down payment of 10–20% or more is common.
Many approvals are granted with a ratio of ≤45%; jumbo programs may have a lower cap.
Document stable income (W-2s, pay stubs, or acceptable alternatives).
Verify funds for down payment/closing; jumbo loans may require several months of reserves.
The home must meet condition and valuation standards; condos may have project reviews.
With <20% down, PMI applies, but it's cancellable as you build equity.
Conventional loans in San Antonio offer several benefits. Among them are the following:
Q: Is a conventional loan better than FHA in San Antonio?
A: If you have solid credit and at least 5–20% down, conventional can cost less over time because PMI is cancellable and there’s no upfront mortgage insurance. FHA can be friendlier to lower scores or small down payments; your goals decide.
Q: What down payment do I need?
A: Eligible first-time buyers may qualify for a 3% down payment on conforming loans. To avoid PMI entirely, aim for a 20% loan-to-value ratio. Jumbo typically needs 10–20%+.
Q: Can I use gift funds or down payment assistance?
A: Yes, many conforming programs allow gift funds from eligible donors. Some local DPA options can pair with conventional loans (program rules apply).
Q: How soon can I remove PMI on a conventional loan?
A: PMI can be removed at 80% loan-to-value (by request with sufficient equity) or automatically at 78% LTV per your original amortization schedule, assuming on-time payments.
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Looking for conventional mortgage rates in San Antonio, jumbo loans in Bexar County, or a San Antonio mortgage pre-approval? A quick review of your credit, income, assets, and target price point will reveal whether a conforming or non-conforming path delivers the best total cost of ownership for your home.
Call us today at (877) 280-4833 to speak with one of our Home Loan Specialists or use the tools on this site.
