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Texas Conventional Home Loans
Getting a Conventional Home Loan is harder to qualify for then an FHA Home Loan or a VA Home Loan. Due to market conditions Conventional Home Loans are being used primarily when the buyer is not going to be using the property as their primary residency. The Conventional Home loan could be used if the buyer purchase is for a Owner Occupied, a Second Home or a Investment property.  

The perceived risk from the lender side is the Loan to Value and the credit worthiness of the buyers. 
Here is a breakdown of Conventional Home Loans pertaining to types of Occupancy and Credit Score.
Owner Occupied Properties:
  • Max LTV is 95%. Minimum FICO is 680 to get approved for Mortgage Insurance.
  • LTV less then 80% Minimum FICO Score is 620.
  Second Homes: 
  • LTV 80% or less requires a minimum FICO Score of 620.
  • Lender requires the buyer to have at least 6 months reserves for both properties and or 30% equity in the primary home.
  Investment Properties:
  • LTV 80% or less requires a minimum FICO Score of 660.
  • Lender requires the buyer to have at least 6 months reserves for all properties owned as rental and 2 months of reserves for primary property and or 30% equity.
  • Maximum properties allowed financed is 4 units.*
  • Fannie Mae has a Conventional Home Loan program that allows up to 10 properties.

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