Florida conventional loan — backed by Fannie Mae and Freddie Mac guidelines, requiring a minimum 620 credit score, 3% down for first-time buyers, maximum 49.99% DTI, and maximum 80% cash-out LTV. Mortgage-World.com is a Florida-licensed mortgage brokerage shopping multiple loan programs across FL, NJ, and CT.
A Florida conventional loan lets you buy a home with as little as 3% down with a 620 credit score, a maximum DTI of 49.99%, and a maximum cash-out LTV of 80%. Unlike FHA loans, there is no upfront mortgage insurance premium and PMI cancels once you reach 20% equity. Mortgage-World.com shops multiple loan programs in Florida so you get the most competitive conventional rate — not just one bank’s offer.
Florida Conventional Loan — Key Numbers at a Glance | Mortgage-World.com NMLS #1630225
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What Is a Florida Conventional Loan and How Does It Work?
A Florida conventional loan is a mortgage not insured by a federal agency. It follows guidelines set by Fannie Mae and Freddie Mac, which purchase conventional mortgages from lenders after closing. Compared to FHA loans, conventional financing requires a higher minimum credit score but carries no upfront mortgage insurance premium, offers cancellable PMI at 20% equity, and costs less long-term for borrowers with solid credit. The minimum credit score is 620, minimum down payment is 3% for first-time buyers, and the maximum DTI is 49.99%. According to the Consumer Financial Protection Bureau, conventional loans are the most widely used mortgage type in the country. Mortgage-World.com shops multiple loan programs to find you the most competitive rate for your credit and income profile.
Program Snapshot
Program Snapshot — 2026 Guidelines at a Glance
The table below covers every key Florida conventional loan requirement for 2026, based on Fannie Mae and Freddie Mac guidelines as applied through Mortgage-World.com’s wholesale loan programs:
The infographic below summarizes the key Florida conventional loan requirements at a glance. Call 888.958.5382 to confirm your eligibility with current wholesale lender guidelines:
Conventional Loan Guidelines That Affect Your Approval
These four areas determine whether a Florida conventional loan application is approved or declined. Understanding each one before you apply puts you in a stronger position:
Credit Score & Pricing Tiers
The minimum credit score for a Florida conventional loan is 620, but where your score lands determines the rate you receive. Conventional loans are priced in tiers — a 760 or higher score receives materially better pricing than 680, and 680 beats 620 by a meaningful margin. Unlike FHA’s flat upfront MIP, conventional pricing rewards stronger credit directly through the interest rate. If your score sits between 620 and 659, even a 20-point gain can reduce your rate before you lock. We pull all three bureaus and show you the pricing impact before you commit.
Debt-to-Income Ratio — Max 49.99%
The maximum DTI for a Florida conventional loan is 49.99%. This includes all monthly obligations on your credit report — the proposed PITIA, car loans, student loans, and credit card minimums — divided by gross monthly income. DTIs above 49.99% do not qualify. Borrowers between 47% and 49.99% typically need a 700 or higher credit score plus 12 months of reserves as compensating factors. See our Florida cash-out refinance page to model your payment.
Private Mortgage Insurance — Cancellable at 20% Equity
If your down payment on a Florida home is less than 20%, PMI is required. Unlike FHA mortgage insurance, which stays for the life of the loan when you put down less than 10%, conventional PMI is cancelled once your balance falls to 80% of the original purchase price through scheduled payments or an appreciation-based appraisal. There is no upfront PMI premium at closing. Monthly PMI rates range from 0.15% to 1.5% annually depending on credit score and LTV. Visit our Florida cash-out refinance page if you have equity and want to remove PMI now.
FL Conforming Loan Limits by County
The 2026 conforming loan limit for most Florida counties — including Miami-Dade, Broward, Palm Beach, Orange, Hillsborough, and Duval — is $806,500 for a single-family home. Monroe County (the Florida Keys) is the only high-cost Florida county in 2026, with a limit of $929,200. Loans between the standard and high-balance limit in Monroe County follow Fannie Mae and Freddie Mac guidelines. Above $929,200 requires jumbo financing. According to Fannie Mae’s loan limits page, limits update each November.
Loan Options
Loan Options Available Through Mortgage-World.com
A conventional mortgage in Florida is not one size fits all. These are the most common loan options we close through our Florida wholesale loan programs for buyers, refinancers, second-home purchasers, and investors:
Conventional Purchase Loan
Florida buyers can use a conventional purchase loan for primary residences, second homes, and investment properties statewide. Down payment starts at 3% for first-time buyers under HomeReady or Home Possible, and 5% for repeat buyers. Fixed terms of 10, 15, or 30 years are available along with 5/1, 7/1, and 10/1 ARMs. Seller concessions are allowed up to 3% (LTV above 90%) or 6% (LTV 75–90%).
Conventional Cash-Out Refinance
Florida homeowners with a 620 or higher credit score and at least 20% equity can access that equity through a conventional cash-out refinance up to 80% LTV. There is no upfront mortgage insurance premium — a significant advantage over FHA cash-out for borrowers with sufficient equity. For homeowners at 700 or above, conventional cash-out typically costs less over the life of the loan than FHA. Funds can be used for home improvements, debt consolidation, tuition, or any legal purpose.
Second Homes, Condos & Investment Properties
Conventional loans for Florida second homes require 10% down minimum. Investment properties require 15–25% down depending on unit count, and rental income can be used for qualifying. Condo purchases require the project to be Fannie Mae or Freddie Mac warrantable. For investment properties where you prefer not to qualify on personal income, see our Florida DSCR loan program for a no-income-verification alternative.
Side-by-Side Comparison
Florida Conventional Loan vs. FHA — Which Is Right for You?
The best loan program depends on your credit score, your down payment, and how long you plan to stay in the home. Here is the side-by-side breakdown for Florida borrowers in 2026:
Factor
Florida Conventional Loan
Florida FHA Loan
Min Credit Score
620
500 (10% down) / 580 (3.5% down)
Min Down Payment
3% (first-time) / 5% (repeat)
3.5% (580+) / 10% (500–579)
Max DTI
49.99%
46.99%
Upfront Mortgage Insurance
None
1.75% added to loan balance
Monthly MI Cancellable?
Yes — at 20% equity
Only if >10% down (after 11 years)
Investment Properties Allowed?
Yes
No — primary residence only
Best For
620+ credit, 5%+ down, cancellable MI
500–619 credit, 3.5% down, higher DTI
The Mortgage-World.com Difference — We Run Both Scenarios for You
Many Florida borrowers in the 640–680 score range assume FHA is cheaper because the rate looks lower. Once you factor in the 1.75% upfront MIP and lifetime monthly MIP, conventional with PMI is often the better long-term choice. We run both scenarios side by side — according to Fannie Mae’s research, comparing loan types saves borrowers significantly. Apply online or call 888.958.5382 and we will return both scenarios the same day.
Related Resources
Related Mortgage Pages
Conventional is one of several Florida programs. These pages cover the options buyers compare.
Find out exactly what you qualify for — free, no obligation.
What Clients Say
Real Reviews From Our Clients
Here’s what a few of our clients said about working with Mortgage-World.com.
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“Chris Luis is the BEST mortgage broker on this planet! If you’re looking to buy a home, definitely give him a call. Chris will go above and beyond to try to help you!”
— Tanya W.
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“I had an opportunity to work with Chris when I did my refinancing. I would highly recommend his services to anyone. He was efficient, helpful and very prompt in responding.”
— Aurora T.
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“Julia Luis has been very professional and has been very helpful during the process! Anyone looking for someone to assist them in their future adventures needs to have her on your side! Thank you for being there for me!!”
What is the minimum credit score for a Florida conventional loan?
The minimum credit score for a Florida conventional loan is 620. Conventional loans are priced in tiers — higher scores receive lower rates. Borrowers at 740 or above receive the best available pricing. Some wholesale lenders apply overlays requiring a 640 or 660 minimum, which is one reason working with a mortgage broker who shops multiple lenders matters near the cutoff.
What are the conforming loan limits in Florida for 2026?
The 2026 conforming loan limit for most Florida counties is $806,500 for a single-family home. Monroe County (the Florida Keys) is the only designated high-cost county in Florida with a 2026 conforming high-balance limit of $929,200. Loans above those limits require true jumbo financing, which has stricter qualification requirements and is typically priced higher. Limits are set annually by the Federal Housing Finance Agency (FHFA) and take effect each January 1.
What is the maximum DTI for a Florida conventional loan?
The maximum debt-to-income ratio for a Florida conventional loan is 49.99%. This is higher than FHA’s 46.99% ceiling, which gives conventional loans an edge for borrowers with tighter income-to-debt ratios. Reaching 49.99% DTI generally requires a 700 or higher credit score along with strong cash reserves as compensating factors. Keeping your DTI below 43% gives you the most program flexibility and typically the most competitive rate.
Can I do a cash-out refinance with a Florida conventional loan?
Yes. Florida conventional cash-out refinances allow a maximum LTV of 80%, meaning you must retain at least 20% equity in the property after taking cash out. The minimum credit score is 620. Unlike FHA cash-out refinances, conventional carries no upfront mortgage insurance premium at closing — which makes it significantly less expensive for most borrowers with 640 or higher credit and sufficient equity. See our Florida cash-out refinance rates page for current program details.
How does PMI work on a Florida conventional loan?
PMI is required when your LTV exceeds 80% (down payment below 20%). It is paid monthly and cancelled once your balance drops to 80% of the original purchase price through scheduled payments or a new appraisal. There is no upfront PMI premium at closing. Monthly PMI rates range from 0.15% to 1.5% annually. Under the Homeowners Protection Act, lenders must automatically cancel PMI at 22% equity.
Can I use a conventional loan to buy an investment property or vacation home in Florida?
Yes. Florida conventional loans allow investment property and second home purchases — FHA loans do not allow investment properties. Single-family investment properties require 15% down minimum; two-to-four-unit properties require 20–25% down. Second homes require 10% down. Documented rental income can help you qualify. For investors who prefer not to show personal income, our Florida DSCR loan program qualifies on rental income versus the mortgage payment.
Ready to Apply for a Florida Conventional Loan? Let’s Find Your Best Rate.
Tell us your credit score, down payment, and the Florida county you are purchasing in. We shop multiple loan programs and return your rate options fast — no obligation and no hard credit pull to get started.
Written By: Chris Luis — Broker/Owner, Mortgage-World.com — NMLS #1630225
I’ve been originating mortgage loans for over 20 years, since 2002. Mortgage-World.com has operated as a licensed mortgage broker since 2017, working across multiple loan programs — FHA, VA, conventional, jumbo, and Non-QM. In Florida the conventional-versus-FHA answer usually turns on mortgage insurance, not the rate.
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