Current conventional guidelines, updated from one source.
The block below is the conforming rulebook reduced to the figures that decide a file, read from Lendmire’s single guideline source and refreshed on this page when the agencies or the wholesale overlays change: the down payment by buyer, the credit floor, the mortgage insurance threshold and its cancellation points, and the ratio maximums.
First-time buyer; 5% standard; 97% loan-to-value at the top
3% down is the first-time buyer’s entry point and 5% the standard one, both on a one-unit principal residence; second homes, two- to four-unit homes, and investment properties carry their own leverage limits, listed in the table below.
Priced on the score; no agency minimum with an automated approval
A 620 decision score opens the program on the wholesale side; the agencies set no minimum for an automated approval and 620 to 640 for manual underwriting by loan type. The strongest effect of the score is on cost, through loan-level adjustments and the mortgage insurance premium.
Required above 80% LTV; removed at 80% by request, 78% automatically
Private mortgage insurance applies above 80% loan-to-value, costs within a published range of 0.58%–1.86% a year depending on the score and the leverage, and ends: by request at 80% of the original value, automatically at 78%, and no later than the midpoint of the term.
With an automated approval; 36% to 45% on a manual file
An automated approval allows a total debt-to-income ratio up to 50%; a manually underwritten file is held to 36%, or 45% when the credit score and reserves meet the agencies’ matrix. The ratio is measured on the total housing payment plus every other monthly obligation against gross income.
| Purpose | Occupancy and program | Maximum LTV |
|---|---|---|
| Purchase | One-unit principal residence, first-time buyer (fixed rate) | 97% |
| Purchase | One-unit principal residence, standard | 95% |
| Purchase | HomeReady / Home Possible (income limits apply) | 97% |
| Purchase | Two- to four-unit principal residence | 95% |
| Purchase | Second home | 90% |
| Purchase | Investment property, one unit | 85% |
| Purchase | Investment property, two to four units | 75% |
| Refinance | Limited cash-out (rate-and-term), one-unit principal residence | 95% |
| Refinance | Cash-out, one-unit principal residence | 80% |
| Refinance | Cash-out, two to four units, second home or investment | 75% |
| Combined LTV | Maximum contribution |
|---|---|
| above 90 percent | 3% of the sales price |
| 75.01 to 90 percent | 6% of the sales price |
| 75 percent or less | 9% of the sales price |
| investment property (any) | 2% of the sales price |
| Event | Waiting period |
|---|---|
| Chapter 7 or 11 bankruptcy | four years from discharge or dismissal (two years with documented extenuating circumstances) |
| Chapter 13 bankruptcy | two years from discharge; four years from dismissal (two with extenuating circumstances) |
| Multiple bankruptcy filings | five years when more than one filing within the past seven years |
| Foreclosure | seven years (three with extenuating circumstances, then limited to a principal residence or second home at 90 percent LTV, purchase or limited cash-out) |
| Deed-in-lieu, short sale or mortgage charge-off | four years (two with extenuating circumstances) |
Mortgage insurance: Fannie Mae reports that private mortgage insurance typically ranged from 0.58%–1.86% of the loan amount a year; the premium on a specific loan is priced by the insurer on the score, the leverage, and the coverage, and is never quoted here. Gifts from relatives may fund the entire down payment on a one-unit principal residence. HomeReady and Home Possible lend to 97% with income at or below 80% of the area median; HomeOne lends to the same leverage with a first-time buyer and no income limit.
Current conventional snapshot · updated October 1, 2026 · principal residences occupied within sixty days, second homes, and one- to four-unit investment properties · conforming limits apply by county and are confirmed by a Lendmire loan officer · above the limit, see the jumbo program · no prepayment penalty · Lendmire is a broker, never the lender.
For informational purposes only. This is not a commitment to lend or extend credit, an offer, or a quote. Program parameters shown are Fannie Mae and Freddie Mac guidelines and wholesale lender overlays, are subject to change without notice, and every figure depends on the borrower, the property, the occupancy, the automated underwriting finding, and full underwriting. Mortgage insurance figures are published typical ranges and editable estimates, not premium quotes. Conforming loan limits apply by county. Lendmire is a mortgage broker, not a lender. Licensed in sixteen states for consumer mortgages. NMLS #2371349.
What a conventional loan is — and how the file is qualified.
The difference between a conventional loan and a government loan is who stands behind it. No agency insures a conforming loan; a private insurer covers the top slice above the threshold, and the agencies buy the loan on their rules. That structure explains each of the four pieces below for an El Paso buyer.
For the program overview, see Lendmire’s conventional loan program, or the statewide guide at Conventional Loans in Texas; for the mortgage insurance cancellation rules, see the CFPB.
Leverage by occupancy and buyer
Who the buyer is matters as much as what the home is. A first-time buyer, meaning no ownership interest in a home for three years, qualifies for the smallest down payment on a principal residence; a repeat buyer starts a little higher; and HomeReady, Home Possible, and HomeOne open the top leverage to buyers who meet their conditions.
Credit scores and automated underwriting
What the score does on an El Paso conventional file is set the cost. A lower score raises the loan-level adjustments and the insurance premium; a higher score lowers both. Manual underwriting, used when the automated system cannot approve the file, carries its own minimum score and tighter ratios.
Mortgage insurance that cancels
The federal cancellation rules are the quiet advantage of a conventional loan. The borrower can ask to drop the insurance when the balance reaches the request threshold, the servicer must drop it at the automatic threshold, and it cannot outlast the midpoint of the term. On an FHA loan at full leverage the premium stays for the life of the loan.
Ratios, reserves, and the DU finding
Total debt-to-income is the ratio that counts: the full housing payment, insurance included, plus every monthly obligation, against gross income. Automated approvals reach the higher ceiling in the snapshot; manual files are held to the lower pair, with the higher of the two needing the matrix’s credit and reserve criteria.
None of this is a decision. The appraisal can come in under the price, the rate is set at lock, the premium is set by the insurer, and the automated finding sets the reserves. What stays fixed is the structure the calculator reproduces: price, down payment, leverage, insurance, payment.
Where El Paso buyers borrow — and how a conforming loan fits.
Three Census figures frame an El Paso conventional file. Ownership says how much of the market the program reaches, the median value says what a low-down-payment loan typically comes to, and household income says what ratio that payment produces.
Citywide figures provide general market context, not an appraisal or an income calculation. Higher values mean a larger down payment in dollars and a larger insurance premium; lower values mean a payment that leaves more room under the ratio ceiling. The percentages do not move; what they amount to does.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Distinct El Paso neighborhoods, distinct conventional files.
Where El Paso buyers shop, and what the conforming file turns on in each place: the occupancy, the property type the appraiser sees, the project review it needs, and the price the ratio has to carry.
Condominiums and townhomes
An El Paso condominium near the job is a conventional file with the project review added. Established projects usually pass; new or investor-heavy ones draw questions, and a project that fails goes to a portfolio lender on different terms. About 39% of El Paso’s households rent — roughly 96,177 renter households on the latest Census estimate.
Established close-in neighborhoods
An older El Paso house is a routine conventional purchase; the appraisal is lighter on condition than a government appraisal, which is one reason buyers of older homes often choose this program. The value against the contract price is the usual question. Median household income in El Paso sits near $59,745 on the latest Census estimate.
Two-to-four-unit homes
Owner occupancy of one unit sets the leverage on an El Paso multi-unit conventional loan; without it, the property is an investment purchase at the lower investment leverage. The appraisal reads every unit and the rents. On a home at El Paso’s median value, the first-time buyer’s minimum down payment comes to about $5,500 and the standard minimum to about $9,200 — before closing costs, and before the mortgage insurance that comes with either.
Higher-value homes
The higher-value El Paso file is a limit question, not an eligibility question. The conforming limit caps the loan amount, and the buyer either adds down payment to fit under it or chooses the jumbo route for the whole purchase. Roughly 149,169 El Paso households own their homes on the latest Census estimate — 61% of all households, the pool a conventional purchase joins.
Investor and second-home purchases
El Paso rentals and pied-à-terre purchases run on conventional loans because FHA and VA finance principal residences only: the investment and second-home leverage in the snapshot, reserves for each financed property, and adjustments for the occupancy. The median owner-occupied home value in El Paso runs near $184,500 on the latest Census estimate.
Newer infill and recent construction
New rows and recent infill in El Paso tend to appraise cleanly, which moves the question to the loan amount: a contract near the conforming limit is confirmed against the county figure before the offer, and a loan above it needs a larger down payment or the jumbo program. El Paso counts a population near 680K within the El Paso, TX area.
What the program accepts is the same everywhere in El Paso: houses, warrantable condominiums, planned developments, manufactured homes that meet the agencies’ rules, two- to four-unit homes, second homes, and investment property, each at its own leverage. What it declines is the non-warrantable project and the loan above the conforming limit, which belong to other programs.
Four ways El Paso buyers put a conforming loan to work.
A good use of a conventional loan is one its shape fits: a decent score, a down payment of any size from the minimum up, an occupancy the agencies allow, and a loan inside the conforming limit. Four common El Paso uses follow.
Buy an investment property
The rental purchase is inside the conventional program at a lower leverage than a principal residence: an El Paso buyer uses the agencies’ rules for counting rental income, shows reserves for every property financed, and accepts loan-level adjustments that reflect the occupancy.
Buy a second home
A second home in El Paso is a conventional file with its own leverage and reserve rules: more down than a principal residence, the payment on the existing home counted in the ratio, and a property the owner occupies part of the year rather than rents full time.
Buy a first home at the first-time-buyer minimum
For an El Paso first purchase, the conventional route pairs the agencies’ lowest down payment with insurance that cancels and no upfront premium; the file is qualified on the score, the ratio, the reserves, and the automated finding, and a family gift may fund the whole down payment.
Buy with twenty percent down and no insurance
Twenty percent down removes the insurance line from the payment on any conventional purchase in El Paso; between the minimum and twenty percent, the insurance applies for a while and then ends, and the calculator shows both payments.
Estimate the payment on an El Paso price before requesting a quote.
Enter an El Paso price, the down payment, and the buyer type, choose a term, and the calculator returns the loan and its loan-to-value, principal and interest, the estimated mortgage insurance while the loan is above the threshold, taxes and insurance, the payment after the insurance ends, and the ratio if you enter income. It also shows the month the balance reaches the cancellation thresholds. The rate field holds the weekly Freddie Mac benchmark as a market reference, never a quote.
El Paso conventional payment estimate
Defaults describe El Paso, not your purchase: put in the real price, the real down payment, and the real escrows.
Editable benchmark: 7.03% as of September 24, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not a conventional loan quote.
Estimate seeded at the low end of Fannie Mae’s published range (0.58%–1.86% a year); the insurer prices the actual premium on the score and the leverage. Applies only above 80% loan-to-value.
Illustrative starting assumptions: a $185,000 price near El Paso’s median owner-occupied home value, the first-time buyer’s minimum down payment, a thirty-year term at the current Freddie Mac benchmark, mortgage insurance at the low end of Fannie Mae’s published range, property taxes and insurance estimated for Texas (U.S. Census Bureau). Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not a conventional loan quote; your rate is set by the lender at lock. The mortgage insurance figure is an editable estimate seeded from Fannie Mae’s published typical range, not a premium quote; the insurer prices the actual premium, and the cancellation month assumes scheduled payments with no extra principal and no change in value. Taxes, insurance and dues are editable estimates; closing costs are not included. Conforming loan limits apply by county. Licensed in sixteen states for consumer mortgages.
Same buyer, three very different closings.
The alternatives put the conventional loan’s cost in perspective: FHA charges a premium every month and an upfront premium at closing, VA charges a one-time fee, conventional charges a premium only until equity arrives. The comparison below is written for an El Paso buyer weighing all three.
Conventional, FHA, or VA.
Conventional fits the El Paso buyer with a solid score: the premium is smaller than FHA’s for strong credit and it ends, there is no upfront premium, and twenty percent down removes insurance altogether. A modest score or a thin file is where FHA competes.
FHA’s leverage is high and its credit standard is forgiving, but its insurance is priced by schedule rather than by score and does not cancel on a full-leverage thirty-year loan. An El Paso buyer comparing the two sees the premium line stay on FHA and disappear on conventional. See Lendmire’s FHA loan program.
An El Paso buyer with VA eligibility and full entitlement rarely needs a conventional loan for a principal residence: nothing down, no insurance, and residual-income underwriting. Conventional is the route for that same veteran’s second home or investment property, which VA does not finance. See Lendmire’s VA loan program.
The decision is rarely close once the profile is known. Conventional tends to win the strong score and every non-primary occupancy, FHA the modest score, and VA nearly any eligible principal residence. The comparison is run on the actual numbers, in writing. Above the conforming limit, see the jumbo loan program.
What to prepare for an El Paso scenario review.
Gather these before an El Paso review: the ordinary mortgage documents, plus the pieces that settle the first-time-buyer question and the occupancy.
This is a general preparation guide, not a universal checklist. The selected lender may request additional information based on the transaction, the property, the automated underwriting finding, and the income picture. Nothing here is legal or tax advice.
Local details that can change the loan.
Check these before leaning on any number for El Paso: the mortgage insurance structure and when it ends, the score and what it costs, the appraisal, the condominium review, the conforming limit, the ratio and reserves, and the occupancy.
Use these checks to keep the El Paso file clean and fundable.
The list is short because the program is: the insurance, the score, and the property decide most El Paso files before income is even opened.
- Plan the insurance: it cancels on request at the request threshold and automatically at the termination threshold.
- Confirm the score: the lender’s report sets the decision score; multiple borrowers use the average of the median scores.
- Match the occupancy: the stated occupancy must be the real one.
Mortgage insurance: how much, and until when
Cancellation on request needs a good payment history, no subordinate liens, and no decline in value; automatic termination needs only that the loan be current. An El Paso owner whose home has gained value may also ask the servicer to recognize the current value under its own rules, which is a servicer decision rather than a program right.
The score sets the cost
The score does two jobs on an El Paso file: it feeds the automated assessment alongside the rest of the credit file, and it sets the cost of the loan and the insurance. A buyer close to a cost tier sometimes gains more from a short wait and a paid-down balance than from any other change.
Occupancy and its leverage
Each occupancy has its own leverage limit and its own loan-level adjustments: a principal residence occupied within sixty days of closing reaches the top of the table, a second home sits lower, and an investment property lower still. An El Paso buyer who states one occupancy and uses another has misrepresented the loan.
The conforming limit
The limit caps the loan, not the price. An El Paso buyer shopping above it has two choices, a larger down payment or a jumbo loan, and the better one depends on the score, the reserves, and the cost on each. These pages do not quote the limit because it changes every year.
Warrantable or not
An El Paso condominium is a conventional purchase when the project passes the agencies’ review: owner-occupancy mix, budget and reserves, litigation, commercial space, single-entity ownership, and insurance. A project that fails is non-warrantable and outside the conforming program; a portfolio lender may still finance it on other terms.
From an El Paso pre-approval to keys in hand.
Underneath, the El Paso process is any mortgage process; what makes it conventional is the automated finding, the project review where it applies, the leverage by occupancy, and the insurance threshold. Each step below says what happens and what the buyer does.
Pre-approval
Start with the score, the income, the down payment, and the occupancy. A Lendmire loan officer runs the automated system, confirms the leverage and the insurance for the down payment chosen, checks the loan against the conforming limit, compares the structure with FHA and VA on the same numbers, and provides the terms in writing.
Contract and appraisal
The appraisal is a valuation first and a condition report second on a conventional file; a short value re-sizes the loan, and the El Paso contract is adjusted or released under its contingency. Where the system offers value acceptance, the step collapses to the system’s figure.
Underwriting
Underwriting on an El Paso conventional file is a verification of the finding: the documents behind the income and assets, the source of the down payment, the project review, and the insurance commitment for the leverage. Conditions are cleared and the approval is issued with its terms.
Closing
The El Paso closing applies the program’s structure: the insurance premium in the payment while it applies, the escrow account, and no upfront premium. The buyer moves in within sixty days on a principal residence, and the servicer tracks the balance toward the cancellation thresholds.
A brokerage that prices the whole market.
A single lender prices a conventional loan one way; a brokerage with several wholesale programs prices it several ways and shows an El Paso buyer which one costs less on the same score and leverage, with the insurance quoted by the insurer rather than guessed.
Several programs, one set of numbers
The comparison printed on this page is run for real on every El Paso file: conventional with the insurer’s actual premium beside FHA with its premiums beside VA where eligibility exists, and the written terms follow from it.
The insurance explained before the offer
The insurance is the program’s cost and the cancellation rules are its advantage, and Lendmire explains both first rather than last: how much the premium is, which structure fits, and when it ends for an El Paso buyer at the price in hand.
Licensed, consumer-purpose, in writing
Lendmire carries the license for the state the El Paso home is in, delivers the disclosures a consumer mortgage requires, and commits the terms to paper. The program figures on this page are read from one guideline source built on the agencies’ published guides.
Trusted by buyers & families alike.
El Paso conventional loan FAQs
Plain answers to the questions El Paso buyers ask most about conventional loans, in the order they usually ask them.
What is a conventional loan, and who is it for?
A conventional loan is the mortgage an El Paso buyer with good credit should compare first: a low down payment for the first-time buyer, insurance that cancels, no upfront premium, and the breadth to finance a second home or a rental under the same rules.
How much do I need to put down on a conventional loan in El Paso?
It depends on who is buying and how the home will be used. A first-time buyer starts at the lowest figure in the snapshot, a repeat buyer slightly higher, and an El Paso second home or rental higher still. Twenty percent down removes mortgage insurance entirely.
What credit score do I need for a conventional loan?
The practical answer is the floor in the snapshot, and the useful answer is that every tier above it lowers the cost. An El Paso buyer with a modest score should run FHA beside conventional, because FHA prices its insurance by schedule rather than by score.
How does private mortgage insurance work, and when does it end?
The premium is a percentage of the loan a year, divided into the monthly payment, and it is set by the insurer on the score and the leverage rather than by a government schedule. It cancels: by request at the request threshold, automatically at the termination threshold, and no later than the midpoint of the term.
What is the conforming loan limit in El Paso?
Conforming limits are set each year by the FHFA, by county and by unit count, with higher limits in high-cost areas, which is why this page does not quote a figure. A Lendmire loan officer confirms the current limit for the county where you are buying; a loan above it needs a larger down payment to fit under the limit or moves to the jumbo program.
What happens after my El Paso offer is accepted?
In order: the appraisal and any condition notes, the project review where the home is a condominium, the underwriting against the finding, and the closing with the insurance structure set. Your loan officer sets the schedule for the specific file.
Should I choose a conventional loan or FHA?
Neither is better in general. Conventional insurance cancels; FHA’s does not at full leverage. FHA’s score threshold is lower; conventional’s premium is cheaper for strong credit. The loan officer compares them in writing.
Can I take cash out with a conventional refinance?
A conventional cash-out refinance replaces the first mortgage with a larger loan at the cash-out leverage and hands over the difference. An El Paso owner with a low-balance first mortgage usually compares a second lien first.
Can I use a conventional loan to buy a condominium?
A conventional condominium file adds the project question to the house file. Confirm the review before paying for the appraisal; the leverage and the insurance follow the occupancy as they would on a house.
What does the appraisal check on a conventional loan?
Value against the contract price, and condition against the lender’s standard of safe, sound, and marketable. Older El Paso homes draw condition notes more often; most are settled before closing.
An El Paso conventional loan sized to the price, the score, and the leverage.
Begin with a scenario review: the price, the down payment, the score, the income, and the occupancy. A licensed Lendmire loan officer prices the file across the wholesale programs, runs it beside FHA and VA, and puts the terms in writing.
This guide covers El Paso — for the statewide guidelines, markets, and scenarios, see Conventional Loans in Texas, part of Lendmire’s conventional loan program.
Nearby markets in Texas: San Antonio · Austin · Fort Worth · Dallas · Houston
Related programs: FHA Loans · Jumbo Loans · Refinance Loans