Loan Program
Conventional Loans in Florida
A conventional loan is a mortgage not insured by a government agency, typically following Fannie Mae and Freddie Mac guidelines. Qualifying first-time buyers may put as little as 3% down. Private mortgage insurance is required under 20% down and can usually be removed later. Conventional loans also work for second homes and investment properties.
Last updated October 7, 2026
Conventional requirements
| Minimum down payment | As low as 3% for qualifying first-time buyers; often 5%+ otherwise |
|---|---|
| Credit | Generally a credit score of 620 or higher |
| Mortgage insurance | PMI under 20% down; removable as equity grows |
| Occupancy | Primary, second home, or investment property |
| Loan limits | Conforming limits set annually by FHFA (higher in some areas) |
| Condos | Project must be warrantable under agency guidelines |
Florida-specific considerations
Conventional financing is popular in Florida for second homes and vacation properties, from Orlando-area homes to Gulf Coast condos. Second-home rules require personal use, while investment properties have higher down payment requirements.
Condo buyers need the project to be warrantable. Fannie Mae and Freddie Mac review factors like reserves, insurance, litigation, commercial space, and — since Florida's condo safety reforms — critical repairs and special assessments. Buildings with deferred maintenance may be ineligible until repairs are complete.
Florida's homestead exemption and the Save Our Homes assessment cap can lower property taxes on a primary residence after you apply with the county property appraiser, which affects your long-term payment.
For 2026, FHFA's baseline conforming loan limit for a one-unit property is $832,750 (two-unit: $1,066,250). In Florida, only Monroe County (the Florida Keys) has a higher limit, $990,150. Miami-Dade, Broward, Palm Beach, Orange, Hillsborough, and every other Florida county use the $832,750 baseline. A loan above the applicable limit is a jumbo loan.
Sources: FHFA: Conforming Loan Limit Values for 2026; Florida Realtors: FHFA sets 2026 caps
Who a Conventional loan is for
- Borrowers with solid credit and stable income
- Buyers who can put 3%–20% or more down
- Second-home and investment property buyers
- FHA borrowers looking to refinance and remove mortgage insurance
Step-by-step process
- 01
Pre-approval
Confirm credit, income, assets, and down payment.
- 02
Choose your structure
Compare down payment amounts, PMI, and term options.
- 03
Contract and appraisal
An appraisal confirms value; some loans qualify for appraisal waivers.
- 04
Underwriting
Clear conditions and lock in your terms.
- 05
Closing
Review your Closing Disclosure and sign.
Related programs
Related guides
Conventional loan FAQs
How much do I need to put down on a conventional loan?
Qualifying first-time buyers may put as little as 3% down through certain Fannie Mae and Freddie Mac programs. Others typically need at least 5%. Putting 20% down avoids private mortgage insurance, but it isn't required to buy a home.
When can PMI be removed?
On most conventional loans you can request PMI cancellation when your balance reaches 80% of the home's original value, and it generally ends automatically at 78%, provided payments are current. A new appraisal showing increased value may allow earlier removal in some cases.
Can I buy a second home in Florida with a conventional loan?
Yes. Second homes typically require at least 10% down and must be for personal use, not full-time rental. Many buyers use conventional financing for vacation homes in Orlando, the Gulf Coast, or the Keys.
What is a warrantable condo?
A warrantable condo meets Fannie Mae or Freddie Mac project guidelines, such as adequate reserves, limited commercial space, insurance requirements, and no significant litigation or unaddressed critical repairs. Non-warrantable condos may need Non-QM or portfolio financing instead.
Is conventional better than FHA?
It depends. Borrowers with stronger credit often find conventional loans less expensive because PMI can be removed, while FHA may fit better for lower credit scores or higher debt ratios. Jennyffer can compare both side by side for your situation.
What are conforming loan limits?
Conforming loan limits are the maximum amounts Fannie Mae and Freddie Mac will purchase, set each year by FHFA. Loans above the limit are jumbo loans with different requirements.
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Equal Housing Lender. This is not a commitment to lend. All loans are subject to credit approval, underwriting guidelines, and property eligibility. Program availability, terms, and guidelines may change without notice. Information is for educational purposes only.