A Florida conventional loan is any mortgage not insured by FHA, VA or USDA, and for buyers with solid credit and at least 3 to 5 percent down it is often the cheapest way to finance a home in 2026. The catch is that the headline rate is only part of the cost. Mortgage insurance, Florida homeowners and flood coverage, state mortgage taxes and the way you shop all move your real monthly payment. This article explains how conventional financing works in Florida, what it takes to qualify, what it costs in a worked example, and how a Florida-licensed mortgage broker serving clients statewide compares options with a soft credit pull mortgage review instead of repeated hard inquiries.
By Duane Buziak, NMLS #1110647, Florida-licensed mortgage broker serving clients statewide.
How a Florida Conventional Loan Works Across the State
A conventional loan is not insured or guaranteed by a federal agency. Most are conforming loans, meaning they meet the size limits and underwriting guidelines set by Fannie Mae and Freddie Mac, which buy the loans from originators. A non-conforming or jumbo loan exceeds those size limits and follows the guidelines of whichever investor funds it.
I am a Florida-licensed mortgage broker serving clients statewide, and the process runs remotely. There is no storefront to visit. Application, documents, disclosures and signing work the same way for a buyer in Tampa, an Orlando relocation or a Jacksonville purchase, and the rules that matter are Florida’s and the investor’s, not a neighborhood’s.
Occupancy changes the terms more than most buyers expect:
- Primary residence: the lowest down payments and best pricing, including 3 percent options for qualifying first-time buyers and 5 percent for many others.
- Second home: typically a larger down payment and a slightly higher rate, and the property generally has to be a true second residence, not a rental.
- Investment property: usually 15 to 25 percent down, higher pricing and stricter reserve rules. Investors who qualify on rental income instead of personal income often look at DSCR loans instead.
The most common mistake is assuming conventional financing requires 20 percent down. Twenty percent only removes private mortgage insurance (PMI) from the start. Borrowers who put down 3 or 5 percent can still get a conventional loan; they pay PMI until the balance falls far enough, a point covered in the worked example below.
The second misconception is that a 620 score guarantees approval. It is a floor for most conventional files, not a promise. Income, debts, assets, the property and the automated underwriting finding all have to line up.
2026 Conforming Loan Limits and When Florida Buyers Go Jumbo
The Federal Housing Finance Agency set the 2026 baseline conforming limit for one-unit properties at $832,750, up from $806,500 in 2025. Higher limits apply in designated high-cost areas, and most Florida counties sit at the baseline. A few, such as Monroe County in the Keys, carry higher limits, so confirm your county’s figure on the FHFA site before you set a price range. Limits are also higher for two- to four-unit properties.
Miami-Dade is where many buyers cross the line. Florida Realtors market reports have shown single-family median sale prices in the county well above $600,000 in recent years, which means a typical buyer with 10 percent down is already close to the limit, and waterfront or Coral Gables-type purchases clear it easily. Check the latest monthly report for the current median, since it moves.
How jumbo differs from conforming
Jumbo guidelines vary by investor, but the pattern is consistent:
- Down payment: commonly 10 to 20 percent, with less flexibility on mortgage insurance.
- Reserves: often 6 to 12 months of payments in liquid assets, more for larger loans.
- Credit: minimum scores are frequently 680 to 700 or higher, and pricing is sharper above 740.
- Documentation: fuller asset and income verification, and often two appraisals on larger loans.
Because jumbo pricing differs more from one investor to the next than conforming pricing does, comparing several sources matters more here. Foreign nationals buying in Miami face a separate set of guidelines again, so tell your broker early if that applies.
Condo eligibility
Florida condos carry an extra layer. Fannie Mae and Freddie Mac review the project itself, not just the borrower, and buildings with deferred maintenance, unfunded reserves, pending special assessments or litigation can be ineligible for conventional financing. Since the Surfside collapse, Florida’s structural inspection and reserve requirements have made these reviews more common. Guidance changes, so as of October 2026 treat any condo as unconfirmed until the project has been checked against current Fannie Mae condo requirements.
Credit Score, Down Payment and DTI: What Qualifying Takes
For most conventional loans, 620 is the minimum credit score. Pricing improves in tiers, and the best rates and lowest PMI generally arrive at 740 and above. Your score affects both the rate and the monthly mortgage insurance charge, so a 40-point difference can cost more than it appears to. Check the current Fannie Mae Selling Guide for exact thresholds, since they are updated periodically.
Debt-to-income ratio (DTI) compares your monthly debts, including the new housing payment, to gross monthly income. Fannie Mae’s automated underwriting can approve ratios up to 50 percent when other factors are strong, such as healthy reserves, a solid score and a larger down payment. Manually underwritten files are held to lower ceilings, often around 36 to 45 percent. The automated system makes the final call, so two borrowers with the same DTI can get different answers.
Loan-to-value (LTV) is the loan amount divided by the property value. A 5 percent down payment means 95 percent LTV, and every point of LTV affects pricing and PMI.
When conventional is not the best fit
Conventional is not always the winner. Eligible veterans and service members can often buy with no down payment through the VA home loan program, with no monthly mortgage insurance, which usually beats conventional on a low down payment. That matters in Jacksonville, where military buyers are a large share of the market. FHA loans, described on HUD.gov, can work for borrowers with scores below 620 or higher DTI, though FHA mortgage insurance often lasts longer than PMI does.
How shopping affects your credit
Duane Buziak uses NoTouch Credit Pull for a no hard inquiry mortgage pre approval review, so comparing options does not lower your score. The site’s approach references Vantage Score 4.0; whether a given investor uses that model for final underwriting varies, and conventional loans sold to Fannie Mae and Freddie Mac have traditionally relied on other scoring models. A full credit pull is typically still required later in the process, once you commit to a specific loan.
Worked Example: Conventional Loan on a Tampa Home
This is an illustration, not a quote. Suppose a Tampa buyer purchases a $420,000 home with 5 percent down ($21,000), borrowing $399,000 on a 30-year fixed loan. I will use a hypothetical 6.25 percent rate. Real rates depend on score, occupancy, points and the day you lock.
- Principal and interest: about $2,457 per month.
- PMI: assume 0.60 percent annually for a strong-credit borrower at 95 percent LTV, about $200 per month.
- Property taxes: assume 1.5 percent of price, about $525 per month.
- Homeowners insurance: assume $4,200 per year, about $350 per month.
That totals roughly $3,532 per month. If the property sits in a flood zone and coverage is required, a hypothetical $100 per month brings it to about $3,632.
Now put 10 percent down ($42,000). The loan drops to $378,000, and principal and interest falls to about $2,327. PMI at a hypothetical 0.40 percent is about $126. With the same taxes and insurance, the total is roughly $3,328 per month, about $204 less than the 5 percent scenario for an extra $21,000 down. Whether that trade is worth it depends on what else your cash could do.
PMI is not permanent. Under the Homeowners Protection Act, you can generally ask to cancel PMI once the balance reaches 80 percent of the home’s original value, and it ends automatically at 78 percent if you are current on payments. On this $420,000 home, 80 percent is $336,000, so the 5 percent borrower needs to reduce the balance by about $63,000 from the starting $399,000. See the CFPB’s explanation of how to remove PMI for the conditions.
Closing costs vary by file. The goal on many purchases is little to nothing out of pocket at closing, reached through seller credits, credits built into the rate, or both, where the investor and loan type allow it. It is a planning target, not a guarantee, and a higher rate is often the price of larger credits.
Broker vs. Bank: Where Conventional Shopping Pays Off
Two borrowers with identical files can receive different rate and fee quotes depending on who prices the loan. A retail bank or single-company mortgage operation offers its own shelf. A broker submits one file across many wholesale sources and compares the results. Duane Buziak works with hundreds of wholesale sources, which is why a rate-and-fee comparison on the same file can change the outcome.
| Factor | Broker with a wholesale network | Florida retail bank or single-company shop |
|---|---|---|
| Rate shopping | Same file priced across many sources | One shelf, one set of pricing |
| Program breadth | Conventional, jumbo, DSCR, Non-QM, VA | Varies; often conventional, FHA and VA, with narrower investor options |
| Cash-out refinance | Options up to 90% LTV on certain programs, depending on occupancy and investor | Depends on the company’s own overlays |
| Credit pull method | Soft pull first with NoTouch Credit Pull; full pull later | Often a hard inquiry at application |
| Speed to close | Can route to faster-closing sources | Fixed by one company’s capacity |
| Access | Remote, 24/7 application and documents | Business hours and branch availability vary |
National names such as Rocket and Movement.com are single-company options. They can be a reasonable place to get one quote, and I make no claims about their rates, but one quote is a single data point. A broker comparison is useful when you want to see how far the same file moves across the market.
When conventional is not the answer
Investors who qualify on property income rather than W-2 earnings should look at a DSCR loan, which tests whether the rent covers the payment. Jacksonville military buyers should compare VA first. Neither is a failure of conventional, just a better match for the borrower. A mortgage pre approval without hard pull lets you run those comparisons before any score impact.
Florida Costs and Risks to Plan For Beyond the Rate
Insurance often shapes affordability more than the interest rate. Florida homeowners premiums are among the highest in the country, and windstorm and flood coverage can add substantially, especially for coastal homes and older roofs. The Florida Office of Insurance Regulation publishes market information, but the only number that matters is a real quote on the specific property, so get one before you make an offer.
The state also taxes the mortgage itself. Florida charges documentary stamp tax on the promissory note at $0.35 per $100 of the loan, and a 0.2 percent intangible tax on the mortgage amount. On the $399,000 loan above, that is about $1,397 in doc stamps and $798 in intangible tax, roughly $2,195 combined. Confirm current rates at floridarevenue.com, since rules and rates can change. Doc stamps on the deed are a separate item and customarily fall to the seller.
Other items to budget for:
- Escrow: taxes and insurance are usually collected monthly, and an insurance increase can raise your payment mid-year.
- HOA dues: they count in your DTI and can lower the loan you qualify for.
- Condo assessments: special assessments and reserve funding affect both approval and monthly cost.
For existing owners, a conventional cash-out refinance can turn equity into cash. Standard conventional guidelines cap cash-out LTV below 90 percent for many files, but through Duane Buziak’s wholesale network certain programs reach 90 percent. Eligibility depends on occupancy, credit, property type and the investor, and investment properties are typically held to lower limits.
The Conventional Loan Decision Rule for Florida Buyers
A conventional loan fits borrowers with solid credit, manageable debts and at least 3 to 5 percent down. If you have a 740-plus score and stable income, it is usually where to start. If you are a veteran, VA likely wins. If you are an investor qualifying on rent, price a DSCR loan. In every case, compare the full monthly cost including insurance, not just the rate.
Your dream home in Florida is closer than you think. Let’s turn your homeownership goals into reality with a personalized mortgage solution designed for your unique journey. Get your credit-safe consultation today and discover the loan options that fit your life, backed by trusted guidance every step of the way. You can start a no credit hit mortgage application with Florida Mortgage Rates by Duane Buziak. For more Florida guidance, see the hub site at FloridaMortgageBroker.io and the companion site FloridaMortgageMaestro.com.