A conventional mortgage is a home loan that is not insured or guaranteed by FHA, VA, or USDA. A conforming conventional loan follows Fannie Mae or Freddie Mac eligibility and loan-limit requirements. Eligible Florida borrowers may use conventional financing for a primary residence, second home, or investment property, subject to agency, lender, property, and underwriting rules.
Florida Conventional Loan Highlights
Low-Down-Payment Options
Eligible programs such as Fannie Mae HomeReady may permit as little as 3% down, subject to income, occupancy, credit, property, underwriting, and program requirements.
Multiple Occupancy Types
Conventional programs can serve eligible primary residences, second homes, and investment properties. Terms and minimum contributions differ.
Private Mortgage Insurance
PMI may be required when the down payment or equity is below the applicable threshold. Cancellation and automatic-termination rights depend on federal law, servicing rules, payment history, and loan details.
2026 Conforming Loan Limits
FHFA set the 2026 baseline one-unit conforming loan limit at $832,750. The national high-cost-area ceiling is $1,249,125, but the applicable limit is county- and unit-count-specific. Florida buyers should verify the property county using FHFA’s official current table or map rather than relying on an old static county list.
Check the official 2026 FHFA county loan-limit data. A loan above the applicable conforming limit may require jumbo financing.
Conventional vs. FHA
| Feature | Conventional | FHA |
|---|---|---|
| Insurance or guarantee | Not government-insured; private mortgage insurance may apply | FHA-insured with FHA mortgage-insurance requirements |
| Eligible occupancy | Primary, second home, or investment depending on program | Primary residence under FHA rules |
| Down payment | Program-specific; eligible options may start at 3% | Program and borrower eligibility determine the requirement |
| Credit and underwriting | Agency automated or manual underwriting and lender overlays | FHA handbook requirements and lender overlays |
| Best comparison method | Compare rate, APR, mortgage insurance, cash to close, monthly payment, property eligibility, and long-term cost for the actual transaction. | |
Conventional Loans and Florida Down Payment Assistance
Some Florida Housing, local housing-finance authority, SHIP, employer, or community programs may pair with an eligible conventional first mortgage. Funding, income limits, purchase-price limits, homebuyer education, property location, repayment terms, and availability can change. Review the official program terms and the borrower’s county before advertising assistance as available.
Review Florida down payment assistance or use the Florida service-area directory.
Documents Commonly Reviewed
Income and Employment
Pay statements, W-2s, tax returns or other documents as required for the borrower’s income type and underwriting method.
Assets and Funds to Close
Bank, investment, gift, grant, or other approved fund documentation, including source and required reserves.
Credit and Liabilities
Credit history, monthly obligations, housing history, and explanations or documentation requested by underwriting.
Property
Purchase contract, appraisal or valuation, title, insurance, condominium or HOA review, and occupancy confirmation.
Frequently Asked Questions
Does every conventional loan require 20% down?
No. Some eligible programs permit lower down payments. PMI, pricing, reserves, and borrower contribution depend on the program and file.
Can PMI be removed?
Many qualifying principal-residence loans have borrower-requested cancellation or automatic termination rights under the Homeowners Protection Act, subject to the law’s conditions and the loan’s servicing requirements.
Can conventional financing be used for an investment property?
Yes, when the borrower and property satisfy agency and lender investment-property requirements. Down payment, reserves, pricing, and financed-property rules differ from a primary residence.
Are conventional loans available across Florida?
1st Capital Group provides licensed residential mortgage services throughout all 67 Florida counties, subject to lender, agency, borrower, and property eligibility.
What is the minimum credit score for a conventional loan?
There is no single score that guarantees approval. The applicable agency program, automated or manual underwriting, lender overlays, credit history, down payment, reserves, occupancy, and property all affect eligibility and pricing.
What is the 2026 conventional loan limit?
The 2026 baseline one-unit conforming limit is $832,750. The correct limit depends on the property county and unit count, so verify it in FHFA’s official table.
Reviewed Guidance and Official Sources
Reviewed by Nick Lazarevic, NMLS #386391
1st Capital Group, dba of GFL Capital Mortgage Inc, Company NMLS #64367. Content reviewed July 20, 2026.
Compare Florida Conventional Mortgage Options
Review the property county, occupancy, down payment, income, credit, assets, and any assistance-program eligibility before selecting a loan structure.
1st Capital Group as dba of GFL Capital Mortgage Inc | Company NMLS #64367 | Nick Lazarevic NMLS #386391 | Licensed Mortgage Lender | Equal Housing Opportunity | All loans subject to lender underwriting approval. Programs, rates, terms, and conditions are subject to change without notice. Not a commitment to lend.