Conventional Loans in Florida

Conventional loan basics

Conventional loans are mortgages not backed by a government agency. They follow guidelines set by Fannie Mae and Freddie Mac. If you have solid credit and a steady income, conventional usually offers the best rate and the most flexibility.

• 3% down for first-time buyers (Fannie HomeReady / Freddie Home Possible)
• 5% down standard for most buyers
• No mortgage insurance once you reach 20% equity — or use lender-paid MI from day one
• Higher loan limits — up to $832,750 in most of Florida, $990,150 in Monroe County (2026 conforming limits)
• Primary, second home, or investment — conventional covers all three property types
• Fixed or adjustable — 30-year, 15-year, 10-year, 7/6 ARM, 5/6 ARM

Conventional vs FHA — which is cheaper?

If your credit score is 680 or higher, conventional is usually cheaper than FHA because you can drop mortgage insurance (FHA's MIP stays for the life of the loan on most cases). Below 680, FHA is often the better deal despite MIP. We'll run both side by side and show you the numbers.

Conventional refinance in Florida

• Rate-and-term refinance — lower your payment or shorten your term
• Cash-out refinance — tap equity up to 80% LTV
• Fannie RefiNow — reduced refi costs for low-income borrowers