Conventional Financing

Conventional Loans —
the gold standard.

For buyers with solid credit and stable income, conventional financing offers the most competitive rates, no upfront mortgage insurance, and maximum flexibility — whether you're buying a primary residence, second home, or investment property.

Get Pre-Approved Call (561) 299-5825

3%^*

Minimum Down Payment

620+

Minimum Credit Score

$832k

2026 Conforming Limit (most FL counties · $990k Monroe)

14 days^*

Average Close Time^*

Great if you…

Conventional is likely your best fit

✓Have a credit score of 680 or higher
✓Have stable W-2 employment with 2+ years history
✓Can put 5%–20% down for competitive pricing^* and no PMI
✓Are buying a second home or investment property
✓Want PMI that cancels automatically when you hit 20% equity
✓Are refinancing to eliminate FHA MIP from a previous loan

Consider alternatives if…

Other programs may serve you better

→You are a veteran — VA loans have no PMI ever and potentially lower rates
→Your credit is below 620 — FHA is more accessible at lower credit tiers
→You are self-employed with complex income — Non-QM may be a better fit
→Your loan exceeds conforming limits — Jumbo conventional financing may be required

Program Details

Everything you need to
know about conventional.

Down Payment & PMI

Put down as little as 3% through HomeReady or Home Possible programs. With 20% down, you skip PMI entirely. For borrowers below 20%, PMI is cancelable once you reach 20% equity — unlike FHA MIP.

3% down^* for first-time buyers (HomeReady / Home Possible)
5%–19.99% down^* requires PMI — but it's cancelable
20%+ down eliminates PMI from day one
PMI auto-cancels at 78% LTV or sooner by request

Property & Occupancy Types

Conventional financing covers the full spectrum of property types — from starter homes to luxury estates, second homes, and rental investment properties. It's the most versatile loan program available.

Primary residences, second homes, and investment properties
Single-family, condos, townhomes, 2–4 unit properties
No minimum condition requirements beyond safety concerns
Approved for non-warrantable condos through portfolio options

Loan Structures

Choose from a wide variety of term and rate structures. Fixed rates provide payment certainty while adjustable-rate mortgages (ARMs) can offer lower initial payments for buyers with shorter time horizons.

15, 20, and 30-year fixed rate options
5/1, 7/1, and 10/1 adjustable-rate options
Interest-only structures available for select profiles
Rate buy-down options to lower payment in early years

Conforming Loan Limits

Conventional conforming loans stay within Fannie Mae and Freddie Mac limits, which the FHFA raised again for 2026. Loans above these limits enter Jumbo territory with different qualification criteria.

2026 standard limit: $832,750 (most FL counties)
Monroe County (Florida Keys): $990,150 — the only FL high-cost area
Above limit: requires Jumbo conventional financing
2–4 unit properties have higher conforming limits

How It Works

Your conventional loan
with Smart Mortgage.

Pre-Approval in Hours

Submit your application and we run an automated underwriting system (AUS) approval — Fannie Mae Desktop Underwriter or Freddie Mac LP — to give you a fast, credible pre-approval that sellers trust.

Shop with Confidence

With an AUS-approved pre-approval in hand, you can make competitive offers. We provide a pre-approval letter specific to each property so your offer is as strong as possible.

Appraisal & Underwriting

We order the appraisal immediately after contract and begin full underwriting simultaneously. Conventional appraisals are typically faster than government-backed equivalents — contributing to our 14-day average.^*

Clear to Close

Once underwriting clears, we issue the Closing Disclosure and coordinate with title. You sign, the wire hits, and you walk out with keys. Our conventional closings regularly complete in under 2 weeks.

FAQ

Common conventional
questions answered.

What is the minimum down payment for a conventional loan?+

Conventional loans allow down payments as low as 3% for first-time buyers through Fannie Mae's HomeReady or Freddie Mac's Home Possible programs. Most conventional borrowers put down 5%–20%. At 20% down, PMI is not required at all.

When does PMI go away on a conventional loan?+

PMI on a conventional loan automatically cancels when your loan balance reaches 78% of the original purchase price. You can also request cancellation once you reach 80% LTV based on the current appraised value — often faster if your home has appreciated.

Can I use a conventional loan for a second home or investment property?+

Yes — unlike FHA or VA loans, conventional financing is available for primary residences, second homes, and investment properties. Down payment requirements are higher for non-owner-occupied properties (typically 10%–25%).

What is the 2026 conforming loan limit in Florida?+

The 2026 conforming loan limit for single-family homes in most Florida counties is $832,750. Monroe County (Florida Keys) is the only Florida high-cost area, with a single-family conforming limit of $990,150. Loan amounts above these limits require Jumbo financing.

Conventional Loans —
the gold standard.

Everything you need to
know about conventional.

Your conventional loan
with Smart Mortgage.

Common conventional
questions answered.

Real results for
real borrowers.

Get a competitive conventional loan.

Conventional Loans —the gold standard.

Everything you need toknow about conventional.

Your conventional loanwith Smart Mortgage.

Common conventionalquestions answered.

Real results forreal borrowers.

Get a competitive conventional loan.

Explore other loan options.

Conventional Loans —
the gold standard.

Everything you need to
know about conventional.

Your conventional loan
with Smart Mortgage.

Common conventional
questions answered.

Real results for
real borrowers.