Conventional Home Loan Guide

Conventional Home Loans in Florida

Use competitive conventional financing to buy with as little as 3% down, keep more property options open, and build a long-term path that may let you remove PMI later.

Reviewed July 2026 by Scott Mason, Mortgage Advisor, NMLS #2576892

Conventional loans can give you more long-term flexibility

A conventional loan is a mortgage that is not insured or guaranteed by a federal government program such as FHA, VA, or USDA. It can be a powerful fit for qualified buyers who want competitive long-term costs, more property flexibility, and a path to remove private mortgage insurance when applicable requirements are met. It is not just a 20%-down program: eligible buyers may have low-down-payment options while preserving a strong long-term ownership strategy.

Why buyers choose conventional financing

Some options allow 3% down

Certain conventional programs may allow eligible borrowers to purchase a primary residence with as little as 3% down.

PMI can be removable

Private mortgage insurance is commonly required with less than 20% down, but eligible borrowers may have a path to remove it as equity builds and applicable requirements are met.

More ways to use the property

Conventional financing can cover eligible primary residences, second homes, and investment properties, giving qualified buyers more room to match the loan to the plan.

Strong long-term ownership play

For the right borrower, conventional can pair a competitive payment structure with future flexibility as credit, equity, and homeownership goals evolve.

Loan Factory price protection

$2,000 Best Price Guarantee

Eligible fixed-rate conforming conventional loans may qualify for Loan Factory’s $2,000 Best Price Guarantee if you close with another lender at a lower combination of interest rate, fees, and monthly mortgage insurance (when applicable) and satisfy every required quote, comparison, rate-lock, documentation, and timing step.

Eligibility is not automatic. Available only on eligible FHA loans, VA loans, and fixed-rate conforming conventional loans with loan amounts of $200,000 or more. Builder-preferred lender and credit-union offers are excluded. Identical-product and other restrictions apply. Offer expires December 31, 2026.

Review the official eligibility and claim requirements

How the conventional home loan process works

1. Compare the available loan structures

Review conventional, FHA, VA, USDA, and any eligible assistance options using the same purchase price, timeline, and cost assumptions.

2. Build a documented pre-approval

We review income, credit history, assets, monthly obligations, employment, occupancy, and a realistic payment and cash-to-close range.

3. Confirm the property and offer fit

Check the applicable loan limit, property type, condominium or association details, insurance considerations, and appraisal strategy before committing.

4. Complete appraisal, underwriting, and closing

The lender verifies the property, documents, final funds, and loan terms before issuing the final approval and closing authorization.

What I review to build the strongest conventional plan

Credit history, income stability, monthly obligations, and overall qualification
Down payment, closing costs, prepaid expenses, reserves, and complete cash to close
PMI cost and removal considerations compared with FHA mortgage insurance
Occupancy, property type, conforming loan limit, and condominium or association details
Florida homeowners insurance, possible flood insurance, property taxes, and association costs
Gift funds or down-payment-assistance documentation when either is part of the plan

Work with a verified Florida mortgage advisor

Scott Mason | Mortgage Advisor

NMLS 2576892 | Loan Factory NMLS 320841

Serving Florida statewide with deep focus in Central Florida, home base Polk County, including Orlando and the communities around Disney

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About Scott Contact Call 407-392-9592 Email Scott

Rates and terms subject to change. Not a commitment to lend. Equal Housing Lender.

Florida conventional loan planning details that matter

A 3% down payment is not the complete cash-to-close number

Eligible buyers using a 3% down option may still need funds for closing costs, prepaid taxes and insurance, inspections, and other transaction expenses. Seller credits, lender credits, gift funds, or assistance can change the final amount, but each option has documentation and program limits.

PMI should be evaluated as part of the complete loan cost

Private mortgage insurance protects the lender, not the borrower, and it can increase the monthly or upfront cost of a conventional loan. The amount and payment method depend on the final structure. Cancellation or termination may be available later when the applicable legal, investor, and servicer requirements are met.

Florida insurance and association costs can affect qualification

Homeowners insurance, possible flood insurance, property taxes, condominium assessments, and homeowners association dues can materially change the monthly payment. Those costs should be estimated early, especially for condominiums and properties near the coast or in designated flood zones.

The appraisal is not a home inspection

The appraisal supports the lender’s review of value and collateral. It does not replace an independent home inspection, which is designed to help you evaluate the property’s condition before closing. Condominium project and association reviews are separate from both.

Conforming, high-balance, and jumbo are not interchangeable

The FHFA updates conforming loan limits each year, and limits can vary in designated high-cost areas. A loan above the applicable conforming limit may require a different program, documentation standard, or reserve plan. The $2,000 Best Price Guarantee applies only to eligible fixed-rate conforming conventional loans—not high-balance or jumbo loans—and all official terms still apply.

Down payment assistance is a separate program layer

The lender down-payment-assistance options described on this site are not available with conventional financing. Other assistance programs can have different rules, so any possible pairing must be verified for the exact property, borrower, lender, and transaction before it is part of an offer strategy.

Review down payment assistance

Common conventional home loan questions

What is a conventional home loan?

A conventional loan is a mortgage that is not insured or guaranteed by a federal government program. It can be conforming or non-conforming.

What is the minimum conventional down payment?

Certain programs may allow eligible borrowers to purchase a primary residence with as little as 3% down. The required amount depends on occupancy, property type, qualification, and program rules.

Do conventional loans require PMI?

Not always. PMI is commonly required when the down payment is less than 20%. The cost and removal rules depend on the final loan, insurer, investor, servicer, and applicable law.

Is conventional better than FHA?

It depends on qualification, upfront cash, mortgage insurance, payment, property fit, and long-term plans. The most useful comparison uses the same purchase scenario and official Loan Estimates.

Can I use the lender down-payment assistance on this site with conventional financing?

No. The lender down-payment-assistance options described on this site are not available with conventional financing. Conventional can still be compared as a separate no-assistance option.

Are conventional loans only for first-time buyers?

No. Conventional financing may work for qualified first-time or repeat buyers, homeowners refinancing, and eligible second-home or investment-property borrowers.

Is a conventional appraisal the same as a home inspection?

No. The appraisal supports the lender’s value and collateral review; an independent home inspection helps you evaluate the property’s physical condition.

What should I have ready to start a conventional review?

Start with photo identification, income and employment documents, recent asset statements, monthly obligations, your occupancy plan, timeline, and the Florida areas or property types you are considering.

Ready to compare your conventional home loan options?

I’ll review your qualification, property plan, PMI, Florida ownership costs, loan-limit fit, and complete cash-to-close picture before recommending the next step.

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