I'm Bond Peter Njoku (NMLS #2670329), your Plano conventional loan officer. For Collin County buyers with strong credit and income, conventional financing typically beats FHA on total cost — lower mortgage insurance, no upfront MIP, and PMI that disappears once you reach 80% equity.
Plano is one of the most desirable cities in DFW — ranked among the safest large cities in America, home to several Fortune 500 and Fortune 1000 headquarters, and consistently producing some of the strongest home appreciation in Texas. The typical Plano buyer isn't a first-timer scraping together a down payment — they're a move-up buyer with solid income, established credit, and a target price between $400,000 and $650,000.
That profile is exactly where conventional loans shine. With a 680+ credit score, conventional pricing beats FHA on every metric that matters: lower monthly payment, lower total cost, and mortgage insurance that eventually disappears. There's no income limit (unlike USDA), no geographic restriction, and the 2026 Collin County conforming loan limit of $806,500 covers virtually every standard Plano purchase without going jumbo.
| Minimum credit score | 620 (best pricing: 680+) |
|---|---|
| Down payment | 3% – 20%+ |
| Upfront MIP | None |
| PMI (if <20% down) | Yes — cancels at 78% LTV |
| Income limits | None (standard conventional) |
| 2026 loan limit (Collin County) | $806,500 |
| Loan types | 30-yr fixed, 15-yr fixed, ARMs |
| Conventional | FHA | |
|---|---|---|
| Purchase price | $480,000 | $480,000 |
| Down payment (5%) | $24,000 | $24,000 |
| Upfront fee | $0 | $7,644 (1.75%, rolled in) |
| Monthly MI | ~$190/mo (PMI) | ~$330/mo (MIP) |
| MI removal | Cancels at 80% LTV | Stays for life (if <10% down) |
| 5-year MI total | ~$11,400 | ~$27,444 (incl. upfront) |
Estimates based on 700 credit, 5% down, 30-yr fixed. Actual rates and MI vary.
The conventional buyer saves roughly $140/month in mortgage insurance on this scenario — and walks away from the comparison entirely once they hit 80% LTV. The FHA buyer never does; that MIP runs for the full 30 years unless they refinance.
For Plano buyers with 680+ credit and a stable income, the case for conventional is almost always stronger. The question is really about down payment and how much of your cash to deploy at closing — and I run those scenarios at 3%, 5%, 10%, and 20% so you can see exactly where the crossover points are.
| Down payment | On $480K home | PMI? | Best for |
|---|---|---|---|
| 3% | $14,400 | Yes | HomeReady/Home Possible (income limits apply) |
| 5% | $24,000 | Yes | Buyers preserving cash for reserves or renovations |
| 10% | $48,000 | Yes (lower rate) | Balancing upfront cost vs. monthly savings |
| 20% | $96,000 | No | Eliminating PMI entirely from day one |
The 20% down myth is strong in a market like Plano — but it's not always the right call. Locking $96,000 in home equity that could stay liquid and working elsewhere is a real tradeoff. Many of my Plano buyers land at 10–15% down: enough to get a meaningfully lower PMI rate without wiping out their savings. I run the full break-even analysis so the decision is informed, not assumed.
And if you're using equity from a prior home sale — common in Plano's move-up market — I'll work through the timing of your old closing, bridge financing if needed, and the cleanest structure for applying that equity to the new purchase.
The minimum is 620, but Plano buyers with 680+ get materially better rates — and at 740+ you're in the top pricing tier. I'm Bond Peter Njoku (NMLS #2670329) — I pull your scores, show exactly where you land, and advise whether it's worth time to improve before applying. Call 469-545-7180.
As low as 3% through HomeReady or Home Possible (income limits apply). Most Plano move-up buyers put 5–20% down. At 20%, PMI is eliminated completely. I'm Bond Peter Njoku (NMLS #2670329) — I run the numbers at every down payment level. Call 469-545-7180.
The 2026 conforming loan limit for Collin County is $806,500. Most standard Plano purchases fall well within that. Loans above this amount become jumbo and require different underwriting. I'm Bond Peter Njoku (NMLS #2670329). Call 469-545-7180 to confirm where your target price lands.
For buyers with 680+ credit, conventional almost always wins — lower monthly MI, no upfront MIP, and PMI that cancels at 80% LTV. FHA makes more sense below 660 or for more flexible underwriting. I'm Bond Peter Njoku (NMLS #2670329) — I run both scenarios for your specific situation. Call 469-545-7180.
I'm Bond Peter Njoku (NMLS #2670329), your Collin County conventional loan officer. Call, text, or WhatsApp me at 469-545-7180 — I'll pull your credit, run your scenarios, and have a pre-approval ready fast.
Also serving nearby: Plano · Conventional Loans in McKinney · Conventional Loans in Frisco · Conventional Loans in Allen · Conventional Loans in Prosper · Conventional Loans Overview · FHA Loans · Refinance