Conventional Home Loans in Florida
Flexible financing for primary homes, second homes and investment properties anywhere in Florida – from Miami and Fort Lauderdale to Tampa, Orlando and Naples – with guidance from pre-approval to closing.
What is a conventional loan?
A conventional loan is a mortgage that is not insured or guaranteed by a government agency, unlike FHA, VA or USDA financing. Most conventional mortgages are conforming loans that follow Fannie Mae and Freddie Mac guidelines.
Conforming loans stay within the annual conforming loan limit. Financing above that limit is generally considered a jumbo loan. The right option depends on the property, your financial profile and how you plan to use the home.
A conventional loan is a full-picture decision
Start with your purchase plan
Review the intended occupancy, price range, down payment, assets and time frame. Primary homes, second homes and investment properties can be evaluated differently.
Match the financing structure
Compare a conforming loan with other applicable options, along with fixed or adjustable terms, private mortgage insurance, cash to close and payment structure.
Verify the property early
The home, appraisal, title work and - for a condo - the project review can affect the available financing path. Bring those questions forward before you rely on an offer.
Use the disclosures to decide
The Loan Estimate and Closing Disclosure show the loan terms, projected payment and transaction costs for your specific scenario. Review the details and ask questions before closing.
Why borrowers choose conventional loans
Low down payment options
Eligible buyers may qualify for conventional financing with a lower down payment.
Mortgage insurance can be removed
PMI may be requested for cancellation at 80% loan-to-value based on original value and terminates automatically at 78% when payments are current.
No upfront government funding fee
Conventional loans do not include an upfront government funding fee.
Flexible property use
Available for primary residences, second homes and eligible investment properties.
Fixed and adjustable terms
Choose fixed-rate or adjustable-rate terms, commonly from 10 to 30 years.
Competitive pricing
Strong credit and larger down payments can support more competitive loan pricing.
Conventional loan requirements
Final eligibility depends on the full application and automated underwriting. These guidelines are typical, not a commitment to lend.
- Credit score
- Typically 620 minimum, with better pricing generally available at higher scores.
- Down payment
- From 3% for eligible first-time buyers and qualifying programs. A 20% or greater down payment avoids private mortgage insurance.*
- Debt-to-income ratio
- Generally up to 45%, or up to 50% with strong compensating factors.
- Occupancy minimums
- Typical second-home financing starts at 10% down and investment property financing at 15% or more down.*
- Employment and income
- Documented, stable income with a typical two-year history.
- Reserves
- May be required based on property type, occupancy and number of financed properties.
- Gift funds
- Allowed for down payment on primary residences with a signed gift letter.
What you will need to apply
Having these documents ready can make the pre-approval conversation more efficient.
Government-issued photo ID
Most recent 30 days of pay stubs
Two years of W-2s and or tax returns
Two months of bank and asset statements
For self-employed borrowers, two years of business and personal returns
Gift letter, if applicable
Details of other properties owned
How the conventional loan process works
Consultation and pre-approval
Review your goals, documents and estimated buying power before you begin the home search.
Home search and accepted offer
Once your offer is accepted, the property and contract details are added to your loan file.
Full application and Loan Estimate
Complete the application and receive a Loan Estimate within three business days.
Appraisal and title work
The property is appraised and title work is ordered to support the transaction.
Underwriting and conditional approval
Your loan is reviewed and any outstanding conditions are addressed.
Clear to close and Closing Disclosure
After final approval, you receive the Closing Disclosure at least three business days before closing.
Closing and keys
Sign the final documents, complete funding and receive the keys to your home.
Conventional vs. FHA at a glance
Both programs can be useful. The most suitable choice depends on your credit profile, down payment, property use and long-term goals.
| Feature | Conventional | FHA |
|---|---|---|
| Minimum down payment | From 3% for eligible buyers and qualifying programs* | From 3.5% for eligible borrowers* |
| Credit score | Typically 620 minimum | May allow lower scores with program requirements |
| Mortgage insurance | PMI may apply below 20% down | Upfront and monthly mortgage insurance may apply |
| MI removal | May be removed under applicable cancellation and termination rules | Depends on loan terms and program rules |
| Property types | Primary, second home and eligible investment properties | Primarily owner-occupied primary residences |
| Loan limit | Annual conforming loan limit applies | County-specific FHA loan limits apply |
Conventional loan FAQs
What credit score do I need for a conventional loan?
A conventional loan typically requires a minimum credit score of 620. Higher scores can improve pricing and may expand the loan options available to you. Final approval depends on the full application and automated underwriting.
How much do I need for a down payment?
Eligible first-time buyers and qualifying programs may allow down payments from 3%. A 20% or greater down payment generally avoids private mortgage insurance. The required amount depends on the property, occupancy and borrower profile.
What is PMI and when can I remove it?
Private mortgage insurance, or PMI, may be required when the down payment is below 20%. You may request cancellation at 80% loan-to-value based on original value, while automatic termination generally occurs at 78% if payments are current.
What is the conventional loan limit in Florida for 2026?
For a one-unit property, the 2026 baseline conforming loan limit is $832,750. Higher limits may apply in some counties and to two- to four-unit properties. Verify the limit that applies to the property before deciding whether a loan is jumbo.
Can I use a conventional loan for an investment property or second home?
Yes, conventional financing can be used for eligible second homes and investment properties. Down payment, reserve and pricing requirements are generally different from a primary residence, so your intended occupancy matters.
Can I use gift funds for my down payment?
Gift funds are allowed for down payments on primary residences when program requirements are met. A signed gift letter and supporting documentation are typically required.
Is a conventional loan better than an FHA loan?
Neither option is universally better. Conventional financing may suit borrowers with stronger credit, a larger down payment or a second-home or investment purchase. FHA may be appropriate for other borrower profiles. The best fit depends on your full application and goals.
Can I buy a condo with a conventional loan in Florida?
Yes, if the unit and condo project meet conventional financing requirements. Association financials, reserve funding and Florida building safety requirements can affect eligibility, so it is important to review the building early.
Ready to see what you qualify for?
Start with a focused pre-approval conversation and receive clear guidance on the documents, timelines and loan options that fit your purchase.
Important disclosures
* Representative example and APR disclosure – to be provided by lender.
Programs, rates and requirements are subject to change and borrower qualification. This is not a commitment to lend.