Conventional Investment Property Loans in Houston, TX
Loan-size math and qualifying analysis for Conventional financing on Houston's $265k median home value. Strong fit.
Strong fit for Houston.
Houston medians ($265k) keep down payment requirements manageable, and rental fit (75/100) supports the long-term cash flow conventional loans depend on.
Payment on Houston's $265k median.
| Median home value (Houston) | $265,062 |
| Assumed LTV | 80% |
| Loan amount | $212,050 |
| Cash to close (down payment) | $53,012 |
| Assumed rate | 6.75% |
| Term | 30-year amortizing |
| Monthly P&I | $1,375/mo |
Does Houston pencil?
| Median monthly rent (Houston) | $1,549/mo |
| Property taxes (est. 1.1%/yr) | −$243/mo |
| Insurance (est. 0.5%/yr) | −$110/mo |
| NOI (before debt) | $1,196/mo |
| Debt service | −$1,375/mo |
| DSCR | 0.87 |
Most Conventional lenders require DSCR ≥ 1.10 to fund and ≥ 1.20-1.25 for the best pricing tier. Houston medians fall below typical lender DSCR floors — a DSCR loan will only work on properties materially below median or with above-market rent.
Conventional financing — the mechanics.
Conforming residential mortgage for non-owner-occupied 1-4 unit properties, sold to Fannie Mae or Freddie Mac. Standard 30-year amortization. The lowest-cost real-estate financing available to most investors.
Lender requires: 680+ FICO, 20-25% down, DTI typically under 45% including the new mortgage, 2 years of W-2 + tax returns, 6 months of reserves per property. Closing in 30-45 days.
How Texas law affects this loan.
Texas: no state income tax. See full Conventional in Texas breakdown.
Frequently asked.
What's the typical Conventional loan size for a property in Houston?
On Houston's $265k median home value, a Conventional loan at the standard 80% LTV would be approximately $212k, requiring $53k down.
What's the monthly payment on a typical Conventional loan in Houston?
Fully-amortizing 30-year payment on a $212k Conventional loan at the typical rate of 6.75% would be approximately $1k/month, excluding taxes and insurance.
Is Houston a good market for Conventional financing?
Houston medians ($265k) keep down payment requirements manageable, and rental fit (75/100) supports the long-term cash flow conventional loans depend on.
What credit and reserves do Conventional lenders require for Houston properties?
Lender requires: 680+ FICO, 20-25% down, DTI typically under 45% including the new mortgage, 2 years of W-2 + tax returns, 6 months of reserves per property. Closing in 30-45 days.
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