What a conventional loan is
A conventional loan is not backed by a government agency like FHA or the VA. Most follow guidelines from Fannie Mae and Freddie Mac, which keeps them widely available and competitively priced.
- Low down payment options for qualified first-time buyers.
- Mortgage insurance that goes away. With a smaller down payment you will have private mortgage insurance, but unlike FHA it can be removed once you build enough equity.
- Primary, second home or investment property. One program covers all three.
- Pricing rewards strong credit. The better your score and the more you put down, the better the pricing tends to be.
Conventional vs FHA
This is one of the most common questions I get. FHA is more forgiving on credit, but its mortgage insurance is usually there for longer. Conventional mortgage insurance is priced on your credit score and can be removed later. For a lot of buyers with good credit, conventional wins. For others, FHA does. I run both on your actual numbers so you can see the difference.
Conforming and jumbo
Conventional loans have a conforming loan limit that is set each year. If you need to borrow above that, a jumbo loan is the next step. I can shop jumbo options as well, including for higher priced homes in South Tampa and on the water in Apollo Beach.
Investment property
If you are buying a rental and want to use your personal income to qualify, conventional is usually the cheapest route. If you would rather qualify on the property’s rent instead of your tax returns, take a look at DSCR loans.
Common questions
How do I get rid of PMI on a conventional loan?
PMI can be removed once you reach enough equity, either by paying down the loan or through appreciation with a new appraisal. Your servicer has to drop it automatically at a certain point, and you can request removal sooner.
Can I buy a second home in Florida with a conventional loan?
Yes. Second homes have their own guidelines, and pricing is often better than an investment property loan. The home generally needs to be a reasonable distance from your primary residence and not used as a full-time rental.
What is the difference between a broker and a bank for a conventional loan?
A bank can only offer its own rates. I can shop the same loan across a large network of wholesale lenders, which often means better pricing and more flexibility on unusual files.
All loans subject to credit approval, property eligibility, and underwriting guidelines. Not all borrowers will qualify. Program terms and availability can change without notice. This is not a commitment to lend.