Loan Programs
Conventional Loans
The most widely used loan type, for buyers with steady income and solid credit.
Conventional loans are not backed by a government agency. Most follow guidelines set by Fannie Mae and Freddie Mac, which makes them the standard choice for many buyers and homeowners.
With a smaller down payment you will usually pay private mortgage insurance, but unlike FHA insurance it can be removed once you build enough equity. Put enough down and you avoid it entirely.
Options
Conventional options
Fixed rate
The same rate and principal and interest payment for the whole loan, with terms from 10 to 30 years.
Adjustable rate (ARM)
A fixed rate for an initial period, then adjusts. Can make sense if you expect to sell or refinance before it adjusts.
Conforming and high-balance
Loan limits are set by county each year. High-cost areas like Miami-Dade have higher limits.
HomeReady and Home Possible
Fannie Mae and Freddie Mac programs for low- to moderate-income buyers, with reduced mortgage insurance.
Second homes and investment
Conventional financing is available for vacation homes and rental properties, not just primary residences.
Requirements
What lenders look for
Benefits
Why borrowers choose it
Removable mortgage insurance
Private mortgage insurance comes off once you reach the required equity, unlike FHA insurance on most loans.
Flexible terms
Choose a 15- or 30-year fixed rate, an ARM or terms in between to match your goals.
Higher loan limits
Conforming and high-balance limits cover most South Florida purchases before you need a jumbo loan.
Guidelines shown are typical and vary by lender. Loan approval, rates and terms depend on credit, income, property and lender guidelines. Program availability and requirements are subject to change. This is not a commitment to lend.
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