Skip to main content
The Mortgage Expert
Conventional Loan Florida · Decision Engine

Conventional Loan Florida: get clear answers before you apply.

Conventional loans can be the cleanest mortgage path for borrowers with stronger credit, stable income, and enough down payment or equity. But the real decision is not just the rate. Credit score, DTI, PMI, loan limits, LLPAs, property type, and Florida insurance all change the math.

Florida mortgage broker. Wholesale conventional options. No rate bait. No pressure.

Get My Conventional StrategySearch Conventional QuestionsRun a Conventional Rate Scenario →
Quick facts
  • 620+ credit score is the common minimum
  • 3% down may be available on eligible primary-residence programs
  • PMI applies under 20% down — and is removable later
  • LLPAs price for credit, LTV, occupancy, and property type
  • 2026 baseline conforming limit: $832,750 one-unit
No BS

The rate is not the whole story.

Credit, LTV, PMI, LLPAs, property type, and Florida insurance all decide the real cost. Compare full Loan Estimates — not headline rates.

Start here

The most searched conventional answers

Direct answers to the questions Florida buyers ask most about conventional loans. Each links to the full answer page.

Requirements

Conventional approval depends on stacked requirements

Conventional approval is based on credit, DTI, income stability, cash to close, property type, occupancy, loan purpose, appraisal, and whether the loan fits Fannie Mae or Freddie Mac guidelines. Lender overlays often tighten Fannie/Freddie's published rules.

The minimum acceptable file generally clears with: 620+ credit, DTI within automated underwriting tolerance (often 45-50%), two-year stable employment, sourced assets for down payment plus reserves, an acceptable property and appraisal, and a loan amount within the FHFA county limit.

Approval stack

What clears a conventional file from start to close

  1. Credit score
    Most lenders want 620+; pricing tiers improve materially up through 760+. The 'lower middle FICO' across all borrowers qualifies.
  2. DTI
    Automated underwriting can clear DTIs at 50%+ on strong files; lender overlays often cap lower (45% common).
  3. Income stability
    Two-year history with documented W-2 or self-employed returns. Same-field job changes usually fine.
  4. Cash to close + reserves
    Down payment + closing costs + prepaids, plus reserves required by file complexity (1-6 months PITI).
  5. Property type
    Single-family, condo, multi-unit, manufactured. Each has its own rules. Condos require warrantability review.
  6. Appraisal
    Full appraisal or AUS-issued waiver. Value must support contract price and meet collateral standards.
  7. Loan limit
    Loan amount within FHFA county limit ($832,750 one-unit baseline 2026, up to $1,249,125 in high-cost), or move to jumbo.
Credit, DTI & income

Credit and DTI shape pricing as much as approval

620 is a common minimum credit score for many conforming conventional loans, but approval and pricing depend on the full file. Stronger credit materially affects LLPAs and PMI; 740+ typically unlocks the strongest LLPA tier on most matrices. Below 620, conforming usually doesn't work.

DTI is evaluated by Fannie's DU or Freddie's LP automated underwriting. The published cap is around 50%, but lender overlays often tighten to 45%. Manual underwriting tightens further. The 'lower middle FICO' across all borrowers is the qualifying score.

Credit & DTI

Credit and DTI decide approval and pricing — together

Credit score

620 minimum on most conforming. Pricing tiers (LLPAs) improve at 660, 680, 700, 720, 740, 760, 780. PMI factors track credit too.

  • · Lower middle FICO across borrowers qualifies
  • · 740+ typically unlocks the strongest LLPA tier
  • · Recent late payments hurt more than score alone
DTI

Fannie/Freddie automated underwriting commonly clears 45-50%+. Lender overlays often cap lower. Manual underwriting tightens caps.

  • · Includes housing payment + all monthly debts
  • · Reserves and credit can support higher DTI
  • · LLPAs and PMI still apply on top of DTI math
Down payment & cash to close

Conventional down payment is more flexible than the 20% myth

3% down may be available for eligible primary-residence programs (HomeReady, Home Possible, 97% LTV). 5% down is standard. 10% down typically for second homes. 15-25% down for investment property. 20% down avoids monthly PMI, but it is not required.

Cash to close also covers closing costs, prepaids, escrow setup, and per-diem interest. Seller credits and lender credits offset many lines. Florida-specific items: doc stamps, intangible tax, prepaid insurance escrows.

Down payment

Conventional down payment options at a glance

  • 3% down
    HomeReady, Home Possible, 97% LTV

    Eligible primary-residence programs. Income limits may apply. PMI applies, but PMI on these programs is often lower than standard.

  • 5% down
    Standard conventional

    Most common down payment for conforming primary-residence purchases. PMI applies above 80% LTV.

  • 10% down
    Second home minimum

    Vacation/second-home properties typically require 10%+ down. Modest LLPA hit vs primary.

  • 15-25% down
    Investment property

    1-unit investment typically 15-20% down; 2-4 unit investment usually 25%. Heavier LLPAs apply.

  • 20% down
    Avoid monthly PMI

    20%+ down at closing eliminates monthly PMI. Useful when cash flow matters and reserves are strong.

PMI

Conventional PMI — and how to remove it

PMI (private mortgage insurance) is charged on conventional loans with less than 20% down. Cost varies by credit score, LTV, coverage percentage, occupancy, and property type. Stronger credit cuts PMI materially.

PMI structures: monthly (most common, removable later); single-premium (paid upfront, no monthly); split- premium (partial upfront + reduced monthly); lender- paid (built into a higher rate, not removable).

Removal paths: automatic cancellation at 78% LTV based on the original schedule (Federal Homeowners Protection Act); borrower-requested cancellation at 80% LTV based on original or current appraised value. Subject to servicer rules and the HPA.

PMI

Private mortgage insurance, simplified

  • When it applies
    Above 80% LTV at closing — down payment less than 20% on a purchase, or refinance with less than 20% equity.
  • Cost varies
    Annual PMI factor tiers by credit (620-679, 680-699, 700-719, 720-739, 740+) and LTV (80.01-85, 85.01-90, 90.01-95, 95.01-97). Strong credit cuts cost materially.
  • Structure options
    Monthly PMI (most common, removable later), single-premium PMI (paid upfront, no monthly), split-premium, or lender-paid PMI (built into rate, not removable).
  • How to remove
    Automatic cancellation at 78% LTV based on original schedule. Borrower-requested cancellation at 80% LTV based on original or current value (with appraisal). Subject to servicer rules.
2026 loan limits

The 2026 conforming line — and what's above it

For 2026, the FHFA baseline one-unit conforming loan limit is $832,750. High-cost counties can go up to $1,249,125. Above the applicable conforming limit, the loan moves to jumbo or nonconforming.

Most Florida counties use the baseline. A handful of high- median-price metros qualify for higher limits, scaling up to the high-cost ceiling. Multi-unit (2-4 unit) limits are higher than 1-unit — verify exact figures against the current FHFA/Fannie/Freddie tables before structuring an offer.

No BS

The loan limit is not your affordability number.

Your payment, taxes, insurance, HOA, DTI, credit, and cash to close still decide the real answer. The conforming limit is a structural cap on agency financing — not a measure of what your file qualifies for.

2026 loan limits

The conforming line — and what's above it

One-unit baseline
$832,750

2026 FHFA conforming loan limit for most Florida counties. Loans at or below this amount are eligible for sale to Fannie Mae or Freddie Mac.

High-cost ceiling
$1,249,125

2026 high-cost area ceiling. Designated counties (typically high-median-price metros) qualify for limits between the baseline and ceiling.

Above conforming

Above the applicable county limit, the loan moves to jumbo (non-agency) or nonconforming. Jumbo has its own pricing and underwriting — often stronger credit and more reserves required, but pricing varies by lender.

Loan limit is not your affordability number. Your payment, taxes, insurance, HOA, DTI, credit, and cash to close still decide what your file actually qualifies for.

Rates & LLPAs

Pricing is shaped by credit, LTV, and LLPAs

Conventional pricing is heavily affected by LLPAs (Loan-Level Price Adjustments) — Fannie Mae and Freddie Mac price adjustments based on credit score, LTV, occupancy, property type, and loan purpose. They show up as points or rate adjustments.

A lower headline rate with points may not beat a higher rate with lender credit, depending on how long you keep the loan. Compare full Loan Estimates: note rate, APR, points/credits, and total cash to close together.

Wholesale broker channels can quote across multiple lenders; retail banks quote their own pricing. The better deal varies by file and market day.

LLPAs

What moves your conventional pricing

LLPAs (Loan-Level Price Adjustments) are agency price adjustments. They show up as points/credits on the rate sheet and can swing pricing by 1-2%+ in equivalent rate. Five factors drive them:

  • Credit score
    Lower scores = higher LLPAs. Major brackets at 620, 640, 660, 680, 700, 720, 740, 760, 780. The 740+ tier is historically the strongest.
  • Loan-to-value
    Higher LTV (smaller down payment) = higher LLPAs. Crosses with credit on the matrix to produce the combined adjustment.
  • Occupancy
    Investment property carries the largest occupancy LLPA. Second home is between primary and investment.
  • Property type
    Condo carries an LLPA above 60% LTV. Multi-unit (2-4) carries its own. Manufactured home programs have their own pricing.
  • Loan purpose
    Cash-out refinance carries a heavier LLPA than rate-and-term refinance. Purchase has the lowest purpose LLPA.

The LLPA matrix updates periodically. Run a real Loan Estimate with current credit and structure to see actual adjustments.

See Florida mortgage rates
Compare

Conventional vs FHA vs VA

Conventional often wins with stronger credit, larger down payment, removable PMI, cleaner property and appraisal handling, and access to second home and investment property financing.

FHA may win when credit is weaker (under 680) or DTI is higher and the borrower needs FHA's flexibility.

VA usually wins for eligible veterans — no monthly mortgage insurance, zero-down available, competitive pricing.

Decision matrix

Conventional vs FHA vs VA — where each has the edge

ScenarioConventionalFHAVA
Stronger credit (740+) with 10%+ downedgeokedge (eligible)
Lower credit (580-680)toughedgeedge (eligible)
Zero down availablenonoedge (eligible)
Long-term mortgage insurance costPMI removeslifelong MIPno MI
Investment propertyedgeblockedblocked
Second homeedgeblockedblocked
Older property / condition issuesedgeharderharder
Loan above $832,750jumbo pathlimitedno county limit (full ent)
Appraisal & property types

Property type changes the conventional file

Conventional appraisals are often less repair-heavy than FHA or VA — they focus on value and basic collateral acceptability rather than property-condition compliance. The property still has to be acceptable collateral.

Condos require warrantability — the project must meet Fannie/Freddie rules around owner-occupancy, insurance, reserves, and litigation. Florida's 2022+ condo law has affected some older buildings.

Investment and second homes have stricter pricing, down payment minimums, and reserve requirements than primary residence.

Property factors

What changes the conventional file by property type

  • Appraisal
    Full appraisal or AUS-issued waiver. Less repair-heavy than FHA.
  • Condo warrantability
    Project must meet Fannie/Freddie rules (occupancy ratio, reserves, insurance, litigation).
  • Manufactured home
    MH Advantage / CHOICEHome for premium pricing. Standard manufactured has stricter LTV.
  • Investment property
    1-unit 15-20% down minimum; 2-4 unit 25%. Heavier LLPAs. 6+ months reserves.
  • Second home
    10%+ down minimum. Modest LLPA. Occupancy intent must hold up.
  • Short-term rental
    Airbnb income hard to qualify on standard conventional. Two years of Schedule E typically needed.
  • Flood insurance
    Required in FEMA SFHA zones. Florida flood zones change — verify before writing.
Investment & second home

Conventional is the standard path for investment and second homes

FHA and VA are primary-residence only. Conventional handles second homes (typically 10%+ down) and investment property (typically 15-25% down). Both carry their own LLPAs that price for the higher default risk.

Investment property rental income generally counts at 75% of market rent or current lease for qualifying purposes. New investors without two years of self-management experience face stricter rules. Short-term rental income (Airbnb, VRBO) is tricky on standard conventional — typically requires two years of Schedule E documentation. Some non-QM and DSCR lenders serve STR-heavy borrowers better.

Second-home occupancy intent has to hold up. Renting out a 'second home' regularly can violate the loan terms and trigger acceleration. Borrowers planning to rent should finance as investment from day one.

Florida strategy

Conventional in Florida — what changes the math

Florida is one of the largest conventional volume markets — Orlando, Tampa, Jacksonville, Miami-Dade, and the Space Coast all see significant purchase and refinance activity. The conforming limits apply across most counties, with some MSAs at higher high-cost amounts.

Florida-specific factors that change the conventional file: property taxes (Save Our Homes doesn't transfer to new owners — assessment often resets at purchase), homeowners insurance (premiums move fast, roof age matters), flood insurance in SFHA zones, HOA dues and CDD assessments in master-planned communities, and condo project review tightened by Florida's 2022+ condo law.

Florida factors

What changes the conventional math in Florida

  • Property taxes
    County millage and assessment basis. Save Our Homes doesn't transfer to new owners — tax often resets at purchase.
  • Homeowners insurance
    Florida premiums move fast. Roof age, wind mitigation, and 4-point inspection on older homes affect pricing and acceptance.
  • Flood insurance
    Required in SFHA. Florida zones change — confirm before writing. Private flood insurance is an option alongside NFIP.
  • HOA / CDD
    HOA dues common across Central Florida communities. CDD assessments common in newer master-planned neighborhoods. Both count in DTI.
  • Condo project review
    Florida 2022+ condo law (SB 4-D) tightened reserves and inspections. Some older buildings face warrantability issues.
  • Short-term rental rules
    Local ordinances vary by city. Orlando and several Central Florida areas have STR restrictions. HOA rules add another layer.
  • Offer strength
    Conventional offers compete well with FHA when structured cleanly. Strong pre-approval and short financing contingency matter.
  • Wholesale pricing access
    Broker channels can compare conventional across multiple wholesale lenders. Compare quotes — pricing varies by lender by day.
Refinance

Conventional refinance: rate-and-term, cash-out, PMI removal

Three main refinance types: 1) rate-and-term — change rate or term, no cash out (closing costs can be financed within the LTV cap); 2) cash-out — pull equity at closing (max LTV typically 80% on 1-unit primary, lower on multi-unit and investment, with cash-out LLPAs); 3) limited cash-out — small refund at closing without triggering full cash-out pricing.

PMI-removal refinance: when home values rise enough that the new appraisal shows 80%+ equity, refinancing eliminates PMI from day one. Compare against simply waiting for the servicer's automatic PMI termination, which is generally tied to 78% of original value on the original amortization schedule and is subject to servicer rules, payment history, and HPA.

Appraisal waivers may be possible on certain low-LTV refinances when Fannie's DU or Freddie's LP issue 'value accept' findings — saves $400-700 and 7-14 days. Cash-out refinances rarely get waivers. Subject to AUS findings and Fannie/Freddie guidelines.

Featured FAQ

Most searched conventional questions

What is a conventional loan?
A conventional loan is a mortgage that is not insured or guaranteed by a government agency (FHA, VA, USDA). Most conventional loans follow Fannie Mae or Freddie Mac guidelines and are called 'conforming.' They typically reward stronger credit and larger down payments with better pricing.
What are conventional loan requirements?
Conventional approval is based on credit (typically 620+ minimum), DTI (commonly capped 45-50% with overlays), documented stable income, sourced and seasoned assets for the down payment and reserves, an acceptable property and appraisal, and a loan amount within the conforming limit. Lender overlays often tighten Fannie/Freddie's published rules.
What credit score do I need for a conventional loan?
620 is a common minimum for many conforming conventional loans, but approval and pricing depend on the full file, automated underwriting, lender overlays, credit history, LTV, and occupancy. 740+ typically unlocks the strongest rate and PMI tiers. Below 620, conforming options narrow quickly.
What is the maximum DTI for a conventional loan?
Fannie Mae's automated underwriting commonly accepts DTI up to 50%, with strong files clearing higher. Freddie Mac's LP often runs similar. Lender overlays usually cap lower — 45% is common, 50% is the practical ceiling for many channels. Manual underwriting is much stricter (often 36-45%).
How much down payment is required for a conventional loan?
As little as 3% down for eligible primary-residence borrowers (HomeReady, Home Possible, and standard 97% LTV programs). 5% down is common on standard conventional. 10% on second homes. 15-25% on investment properties. 20% down avoids monthly PMI.
Do I need 20% down for a conventional loan?
No. 20% down avoids monthly PMI, but it is not required. Conventional loans are widely available at 3%, 5%, 10%, and 15% down. The 20% myth comes from the PMI threshold — it's optional efficiency, not a requirement.
What is PMI on a conventional loan?
PMI is private mortgage insurance — a monthly (or upfront, or split, or lender-paid) charge that conventional loans require when the down payment is less than 20%. PMI protects the lender against default. Cost varies by credit score, LTV, coverage, and property type. Above 80% LTV at closing.
How do I remove PMI from a conventional loan?
Two main paths: 1) automatic cancellation at 78% LTV based on the original loan schedule; 2) borrower-requested cancellation at 80% LTV based on either original value or current appraised value. A new appraisal showing 80%+ equity (commonly after 2-5 years) can accelerate removal. Subject to servicer rules.
What is the 2026 conventional loan limit in Florida?
For 2026, the FHFA one-unit baseline conforming loan limit is $832,750 — that's the standard cap for most Florida counties. High-cost counties go up to $1,249,125. Above the applicable conforming limit, the loan moves to jumbo or nonconforming.
What happens if I need a loan above $832,750?
Above the conforming limit, the loan moves to jumbo (a non-agency loan) unless the property is in a high-cost county where the conforming limit goes up to $1,249,125 in 2026. Jumbo has different qualifying rules, often stricter credit and reserves, and pricing varies by lender.
How do I shop conventional mortgage rates in Florida?
Compare full Loan Estimates from at least two lenders on the same day — rates change daily. Look at note rate, APR, total points/credits, lender fees, and total cash to close together, not the rate alone. Brokers compare across multiple wholesale lenders; retail banks quote their own pricing.
What are LLPAs?
LLPAs (Loan-Level Price Adjustments) are price adjustments Fannie Mae and Freddie Mac apply based on credit score, LTV, occupancy, property type, and loan purpose. They show up as points or rate adjustments on the rate sheet and can swing pricing by 1-2%+ in equivalent rate.
Can I buy a condo with a conventional loan?
Yes, but the project must be warrantable — meeting Fannie Mae or Freddie Mac project-level rules around owner-occupancy, insurance, reserves, litigation, and budget. Many Florida condo projects are warrantable; some are not, especially older buildings or projects affected by recent insurance and reserve law changes.
Can I buy an investment property with a conventional loan?
Yes — conventional is the standard mortgage path for investment properties. Down payment is typically 15% on a 1-unit and 25% on 2-4 unit investments. Rate is materially higher than primary residence due to LLPAs. Rental income usually counts toward qualifying at 75% of market or lease rent.
Conventional vs FHA: which is better?
Depends on credit, down payment, and hold period. Conventional usually wins for borrowers with 700+ credit and 5%+ down, especially over a long hold (PMI cancels; FHA MIP doesn't). FHA usually wins for borrowers with weaker credit (under 680), fresh credit events, or who need maximum DTI flexibility.
Question library

Search the full conventional answer library

Credit, DTI, down payment, PMI, LLPAs, conforming limits, condos, investment property, refinance, Florida — all in one place.

Search by topic or type your exact conventional question.

Requirements5 answers

Credit10 answers

Down Payment12 answers

PMI9 answers

Loan Limits6 answers

Investment Property6 answers

Conventional vs FHA3 answers

Florida9 answers

Still not sure if conventional is the right move for your file?

Let’s compare conventional against FHA and VA, PMI, LLPAs, seller credits, lender credits, and your full Florida payment.

Get My Conventional StrategyRun My Scenario
View All Mortgage Questions
Official sources

Verify conventional rules at the source

This page is written in plain English using official Fannie Mae, Freddie Mac, and FHFA guidance, current mortgage practice, and real-world underwriting experience. Conventional rules can change, and lenders may apply additional overlays.

Outbound links open in a new tab. Mortgage Expert, Inc. is not affiliated with Fannie Mae, Freddie Mac, FHFA, or any government agency. This is general information, not legal or tax advice.

Related

Keep planning your conventional file

Conventional loans overviewBroader conventional product page across the loan-options network.FHA Loan FloridaCompare conventional with FHA at lower credit or higher DTI files.VA Loan FloridaFor eligible veterans — no monthly MI, zero-down available.Loan options explainedConventional vs FHA vs VA vs Jumbo vs DSCR.Florida mortgage ratesCompare conventional, FHA, and VA pricing.Mortgage payment calculatorStack the full Florida monthly payment.Home affordability calculatorPressure-test what you can carry.Florida closing costsTitle, doc stamps, intangible tax, prepaids — what each line really is.Mortgage questions libraryPlain-English answers across every loan topic.Mortgage broker OrlandoWholesale conventional pricing access vs going lender-direct.Get my strategyTalk through your conventional file with Shahram.

Want to know if conventional actually makes sense for your file?

I’ll compare conventional against FHA and VA, PMI, LLPAs, seller credits, lender credits, conforming limits, and your full Florida payment so you can see the real tradeoff before you apply.

Get My Conventional StrategyRun My Scenario