CONVENTIONAL LOANS
Conventional Home Loans
Flexible financing backed by Fannie Mae and Freddie Mac guidelines — for primary homes, second homes and investment properties.
OVERVIEW
The most widely used mortgage
Conventional loans are not insured by a government agency. Most follow guidelines set by Fannie Mae and Freddie Mac, which is why they are often called “conforming” loans. They work for primary residences, second homes and investment properties, with a wide choice of fixed and adjustable terms.
Qualified first-time buyers may be able to put as little as 3% down. With 20% down there is no private mortgage insurance (PMI) — and when you put less down, PMI can usually be removed once you build enough equity.
At a glance
- As little as 3% down for eligible first-time buyers
- No PMI with 20% down; removable PMI with less
- Primary homes, second homes and investment properties
- 15-, 20-, 25- and 30-year fixed plus ARM options
- 2026 conforming limit: $832,750 for a one-unit home in most Florida counties
Who it’s a good fit for
- Buyers with solid credit and steady income
- Second-home and investment property buyers
- Borrowers who want mortgage insurance that can be removed
- Refinancing homeowners with equity
KEY FEATURES
How it works
Removable PMI
Private mortgage insurance can typically be cancelled once your balance reaches 80% of the original value, and it ends automatically at 78% under federal rules.
Low down payment options
Programs such as Fannie Mae HomeReady and Freddie Mac Home Possible offer 3% down options for eligible borrowers, including income-based options.
Property flexibility
Use conventional financing for a primary residence, vacation home or rental property — with different down payment rules for each.
Rate and term choice
Choose a fixed rate for payment stability or an adjustable rate if you expect to move or refinance within a few years.
GENERAL GUIDELINES
What lenders typically look at
- Credit score generally 620 or higher; better scores usually mean better pricing
- Debt-to-income ratio typically up to 45%, sometimes higher with strong factors
- Down payment from 3% (eligible first-time buyers) to 15–25% for investment properties
- Two years of income history, documented with pay stubs, W-2s or tax returns
- Loan amount within the county conforming limit
Guidelines vary by lender and change over time. Alex will review your specific situation against current program rules.
GOOD TO KNOW
Things to consider
- Pricing is more sensitive to credit score and down payment than FHA
- Condos must meet project eligibility rules
- Loans above the conforming limit require jumbo financing
- Rental income can sometimes help you qualify on investment properties
FLORIDA SPECIFICS
Conventional loans in Florida: what’s different
2026 conforming loan limits
- $832,750 for a single-family home in most Florida counties
- $990,150 in Monroe County (Florida Keys)
- Loans above the limit are jumbo loans
Set yearly by FHFA. Higher limits apply to 2–4 unit properties.
- Condo warrantability. Fannie Mae and Freddie Mac review the condo building, not just your unit. Florida’s condo safety laws (milestone inspections and reserve requirements) affect many buildings. If a building doesn’t qualify, see non-warrantable condo loans.
- Insurance. Homeowners, wind and, in flood zones, flood insurance are part of your payment and qualifying.
- Second homes and rentals. Conventional loans finance Florida vacation homes and investment properties as well as primary residences.
- Mortgage insurance. With a smaller down payment you’ll typically pay private mortgage insurance, which can be removed later as you build equity.
Run your numbers first
Use the Conventional Calculator to estimate your conventional loan payment. Then tap Check My Options and Alex will confirm real figures for your situation.
FAQ
Common questions
What is the conforming loan limit in 2026?
For a one-unit home in most Florida counties, the 2026 baseline conforming limit is $832,750. Limits are higher for 2–4 unit properties and are updated every year.
Is 20% down required?
No. Eligible first-time buyers can put as little as 3% down, and many buyers put 5–10% down. Putting less than 20% down means PMI, which can be removed later.
Conventional or FHA — which is better?
It depends on your credit, down payment and the property. Alex can price both side by side so you can compare the payment and total cost.
Can I use a conventional loan for a rental property?
Yes. Investment property loans usually require at least 15% down for a single unit and carry somewhat higher rates.
GET STARTED
See what you may qualify for
Share a few details and Alex will follow up personally to review your options — usually the same business day. No obligation, and requesting information does not affect your credit.
- Shop 300+ wholesale lenders through NEXA Mortgage
- Clear answers on rates, costs and cash to close
- Pre-approval decisions typically within 24 hours of a complete application
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EXPLORE MORE
Related loan programs
FHA LoansJumbo LoansFirst-Time HomebuyersRefinanceAll loan programsThe mortgage process
Not a commitment to lend. Not all applicants qualify. Programs, rates, terms and availability may change without notice. All loans are subject to credit, income, asset and property approval. H. Alex El-Ali, NMLS #1513750, FL LO125697 | NEXA Mortgage, LLC, NMLS #1660690. Equal Housing Lender.
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