Conventional Loans · Florida

Florida Conventional Loans — 3% Down for First-Time Buyers, No Government Funding Fees

Conventional loans are the most common Florida mortgage — backed by Fannie Mae and Freddie Mac, available for purchase, refinance, second homes, and investment properties. Lower closing costs than FHA or VA (no funding fees), PMI cancels at 78% LTV, and loan amounts up to $1,249,125 in Miami-Dade for 2026.

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Florida conventional loan — 3% down for first-time buyers

Why Conventional

The Default Choice for Most Florida Buyers

Conventional loans dominate the Florida mortgage market for good reason — lowest total cost for borrowers with decent credit and 5%+ down, plus the most flexibility on property type.

3% Down for First-Time Buyers

Through Fannie Mae HomeReady and Freddie Mac Home Possible programs, qualifying first-time buyers can put down as little as 3%. Repeat buyers need 5% minimum. Lower than most people assume.

No Upfront Funding Fees

Unlike FHA (1.75% upfront MIP) and VA (up to 3.3% funding fee), conventional loans have no government program fees added to your loan. Your closing costs are typically lower.

PMI Cancels at 78% LTV

Private Mortgage Insurance automatically terminates when your loan balance hits 78% of the original home value (about 5–7 years on a typical loan). FHA mortgage insurance is permanent.

Flexible Property Types & Terms

Primary residence, second home, investment property (up to 10 financed). Choose 10, 15, 20, 25, or 30-year terms. Fixed-rate or 5/1, 7/1, 10/1 ARM. The most versatile loan type.

The Details

What Conventional Loans Actually Cost

The pricing depends on your credit, down payment, and property type. Here’s the math most lenders don’t spell out.

2026 Florida Conforming Loan Limits

Standard counties: $832,750 for single-family. Miami-Dade (high-cost area): $1,249,125. Two-unit, three-unit, and four-unit properties have proportionally higher limits. Above these caps, your loan becomes a jumbo loan — still available but priced differently. We’ll check your exact county limit.

Credit Score Pricing Tiers

620 minimum gets you in. 660–699: standard pricing. 700–739: better pricing. 740–759: significantly better. 760+: best available. Each 20-point band typically saves 0.125%–0.25% on rate. PMI premiums also drop substantially at higher scores. We’ll show you exactly which tier you’re in.

How PMI Actually Works

PMI runs roughly 0.30%–1.50% of your loan annually, added to your monthly payment. It auto-cancels at 78% LTV (you can request earlier removal at 80% with a current appraisal). On a $400,000 loan at 1% PMI, that’s $333/month — gone once you’ve paid down to $312,000 balance.

Investment Property Specifics

Conventional loans finance up to 10 investment properties per borrower. Down payment minimums: 15% for 1-unit, 25% for 2–4 unit. Rates run 0.50%–0.875% higher than primary residence loans. You can qualify on rental income (75% of market rent counts toward income). Above 4 financed properties, qualification gets more complex.

Want to see your exact pricing tier and PMI cost? We’ll run the numbers on your specific scenario — no obligation, no hard credit pull.

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Side-by-Side

Conventional vs FHA vs VA Loans

The three main mortgage types most Florida buyers compare. Each works best for different profiles.

Comparison reflects typical 2026 program guidelines. Exact terms vary by lender and borrower profile.
	Conventional	FHA	VA
Min Down Payment	3% (first-time) / 5%	3.5%	0% (eligible vets)
Min FICO	620+	580+ (500 w/10% down)	580+ (lender typical)
Upfront Funding Fee	None	1.75% upfront MIP	1.25–3.30% (waived for disabled vets)
Ongoing Mortgage Insurance	PMI (cancels at 78% LTV)	Annual MIP (permanent)	None
Max Loan (2026, Miami-Dade)	$1,249,125	$1,249,125	No cap for full entitlement
Investment Properties	Yes (up to 10 units)	No	No
Second Homes	Yes	No	No
Best For	700+ FICO, 5%+ down, flexibility	Lower credit, lower down	Veterans, active military

How It Works

From Quote to Closing in 30 Days

Standard timeline for most conventional loans. Cash-strong buyers with simple income can close in as few as 15–20 days.

Free Pre-Qualification

Send us a quick income/asset summary. We’ll estimate your max loan amount and quote a rate within hours — no hard credit pull.

Submit Documentation

W-2s, pay stubs, tax returns, asset statements, credit authorization. We issue a verified pre-approval letter within 24–48 hours.

Find Your Home & Lock Rate

Shop with confidence. When you’re ready, we lock your rate for 30–60 days while we process the loan.

Underwriting + Appraisal

Standard 30-day underwriting. We coordinate the appraisal and clear all conditions. You’ll know your exact closing costs and monthly payment.

Close & Move In

Sign closing docs and get your keys. First payment due ~45 days later. We’re available for refinance opportunities as rates change.

Honest Considerations

Conventional Isn’t Always the Best Fit

For lower-credit or lower-down-payment borrowers, FHA or VA loans often beat conventional. Know when to consider alternatives.

Stricter credit requirements than FHA — you typically need 620+ FICO; FHA accepts 580. If your credit is borderline, FHA may be better.
Stricter down payment rules than FHA for low-credit borrowers — below 700 FICO, the 3% down option may not be available to you.
PMI required below 20% down — adds 0.30%–1.50% annually until you reach 78% LTV (about 5–7 years on a typical loan).
Higher down payment for investment properties — 15–25% minimum, versus FHA’s 3.5% for primary-converted-to-investment.
Maximum loan amount caps — above the 2026 conforming limits ($832,750 standard / $1,249,125 Miami-Dade), you need a jumbo loan with different qualifying standards.

Common Questions

Conventional Loan FAQ

The questions Florida buyers ask most before choosing a conventional loan. Don’t see yours? Ask Alex directly.

A conventional loan is a mortgage not backed by a government agency (unlike FHA, VA, or USDA loans). Conventional loans follow guidelines set by Fannie Mae and Freddie Mac, which buy and securitize them on the secondary market. They’re the most common mortgage type in the US, used for purchases, refinances, primary residences, second homes, and investment properties. Available in 10, 15, 20, 25, and 30-year terms, fixed-rate or adjustable-rate.

First-time homebuyers can put as little as 3% down through Fannie Mae HomeReady or Freddie Mac Home Possible programs. Repeat buyers need 5% minimum. A 20% down payment eliminates Private Mortgage Insurance (PMI), reducing your monthly payment. Second homes require 10% minimum down; investment properties require 15–25% depending on the program.

Minimum is 620 FICO for most conventional programs. Best pricing kicks in at 740+, with another tier at 760+. Below 700, you’ll pay higher rates and PMI premiums. If your score is between 580–619, an FHA loan typically gives better terms. We’ll pull your credit (free, no impact) and tell you exactly which tier you qualify for and what rate you can expect.

If you put less than 20% down, your lender requires PMI to protect them against default. PMI typically costs 0.3%–1.5% of the loan amount per year, added to your monthly payment. The good news: PMI automatically cancels when your loan balance reaches 78% of the original home value (or you can request cancellation at 80% LTV with a current appraisal). Government loans (FHA) require permanent MIP.

FHA is better if your credit is 580–700 or you have only 3.5% down. Conventional is better if your credit is 700+ and you can put down at least 5%. Key difference: FHA has permanent mortgage insurance (MIP) for the life of the loan, while conventional PMI cancels at 78% LTV. On a $400k loan with 5% down, the lifetime cost difference is typically $20,000–$40,000 in conventional’s favor.

The 2026 conforming loan limit is $832,750 for single-family homes in most Florida counties. Miami-Dade County qualifies as a high-cost area with a limit of $1,249,125. Above these limits, you’d need a jumbo loan (still conventional, but priced differently). Two-unit, three-unit, and four-unit properties have higher conforming limits. We’ll check your county’s exact limit.

Yes. Conventional loans finance up to 10 investment properties per borrower (Fannie Mae limit). Minimum down payment is 15–25% depending on number of units and your overall portfolio. Rates run roughly 0.50–0.875% higher than primary residence loans. For investors with multiple properties or those qualifying on rental income alone, a DSCR loan is often a better fit.

Pre-approval typically takes 24–48 hours after we receive your documents. Full underwriting and closing run 30–45 days for purchases, 30–60 days for refinances. Florida purchases often close faster (20–30 days) for cash-strong buyers with simple income documentation. We provide a closing-date guarantee for qualified borrowers and can sometimes close in as few as 15 days when needed.

Florida’s Most-Used Loan Type

Free Conventional Pre-Approval in 48 Hours

Alex Doce has closed thousands of conventional loans across Florida over 38 years — from first-time 3%-down buyers to multi-property investors. Send us your scenario and we’ll quote your exact rate, PMI cost, and closing total. No obligation, no hard credit pull.

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