Most Flexible

Conventional Loans

Competitive Rates. Maximum Flexibility.

Reviewed by Tathiana Moreno, NMLS #1684574 · Last updated September 2026

Apply for a Conventional Loan Schedule Free Consultation
Minimum Credit Score
620+
Minimum Down Payment
3% (first-time buyers) | 5% (repeat buyers)
Ideal For
Strong credit borrowers, repeat buyers, investment properties

What is a conventional loan?

Conventional loans are not backed by a government agency. They follow guidelines set by Fannie Mae and Freddie Mac. For borrowers with strong credit and stable income, conventional loans often offer the best rates and the most flexibility in terms of property types and loan amounts.

Because Fannie Mae and Freddie Mac set the rules rather than a government agency, conventional loans come in more shapes and sizes than FHA or VA financing: fixed or adjustable rate, 10- to 30-year terms, and financing for primary homes, second homes, and investment properties alike. The tradeoff for that flexibility is stricter credit and income documentation standards, which is why conventional loans tend to work best for borrowers with an established credit history and steady, verifiable income.

Who It's For

Conventional loans are best suited for borrowers with credit scores of 620 or higher, stable employment, and the ability to make a moderate down payment. Repeat buyers moving up from a starter home, borrowers purchasing a second home or investment property, and anyone with strong credit who wants to avoid the ongoing costs of FHA mortgage insurance all tend to gravitate toward conventional financing.

Key Benefits

  • PMI can be removed once you reach 20% equity
  • Available for primary, secondary, and investment properties
  • Higher loan limits than FHA
  • No upfront mortgage insurance premium
  • More flexible property condition requirements
  • Multiple term options (10, 15, 20, 30 years)

What You'll Need

  • Minimum 620 credit score (higher for better rates)
  • Down payment starting at 3–5%
  • Debt-to-income ratio typically under 45%
  • 2 years of employment history preferred
  • W2s, tax returns, or other income documentation
  • Appraisal required

Conventional Loans in Florida for 2026

The 2026 conforming loan limit set by the Federal Housing Finance Agency (FHFA) is $832,750 for a single-family home in most of the country, including the large majority of Florida counties. Some higher-cost Florida counties may qualify for a higher limit; Tathiana can confirm the exact figure for your target county. Loans above the conforming limit are considered jumbo loans and typically require stronger credit and a larger down payment. Conventional financing is also the most common path for Florida buyers purchasing second homes, condos, and investment properties, since FHA and VA loans are limited to primary residences. It's also the standard choice for refinancing in Florida, whether you're lowering your rate, shortening your term, or tapping equity through a cash-out refinance, since jumbo and non-conforming refinance options are more limited elsewhere.

Source: Federal Housing Finance Agency

Frequently Asked Questions

Conventional loans have stricter credit requirements but offer more flexibility on property type, no mandatory government fees, and the ability to cancel PMI. FHA has lower credit minimums but requires mortgage insurance for the life of the loan in many cases.

Yes! Many conventional programs allow 3–5% down. You'll pay PMI until you reach 20% equity, but it can be removed, unlike FHA MIP in some scenarios.

Yes, conventional loans are available for primary residences, second homes, and investment properties.

Jumbo loans exceed the conforming loan limits set by FHFA. Tathiana can help you navigate both conforming and jumbo conventional options.

With complete documentation, Tathiana typically issues pre-approvals within 24–48 hours.

The FHFA set the 2026 baseline conforming loan limit at $832,750 for most of the country, including most Florida counties. Loans above this amount are considered jumbo.

Yes, though the condo project itself must meet Fannie Mae or Freddie Mac approval guidelines. Florida's condo market has faced additional scrutiny following recent structural safety reforms, so Tathiana reviews condo approvals carefully before you make an offer.

By law, lenders must automatically cancel PMI once your loan balance reaches 78% of the home's original value, as long as you're current on payments. You can also request cancellation earlier once you hit 80%.

Generally, a score of 740 or higher unlocks the best conventional pricing, though you can qualify with a score as low as 620. Every 20-point improvement in your score typically improves your rate tier.

Ready to Get Started?

Contact Tathiana today for a free, no-obligation consultation. She'll review your situation and tell you exactly what you qualify for.

Apply for a Conventional LoanCall Now