
CONVENTIONAL LOANS
Understand the Benefits and Risks of Conventional Loans: A Guide to Home Financing

Down Payment
3 – 5 %
Call for eligibly
specification
Minimum Credit Score
620
Call for exceptions
Maximum Loan Amount
$ 726,200
For most FL single-family homes
Seller Contributions
2 – 9 %
% of price depends
on LTV
DTI MAX
50 %
Call for eligibly
specification
Loan Options
It’s getting more and more popular to apply for conventional loan, in fact, 60-70% of all applications opt for this type of loan. It’s not backed by the government, but follows Fannie Mae and Freddie Mac Guidelines. The process to get a conventional loan more flexible, it allows low down payments and allows a fast closing.
One major misconception is that conventional loans need 20% down. Today, we have programs with as little as 3% down.
Features of Conventional Loan:
- You can use a conventional loan to buy a primary residence, second home, or rental property
- Conventional loans are available in fixed rates, adjustable rates (ARMs), and offer loan terms from 15 to 30 years
- Down payments as low as 3%
- No monthly mortgage insurance with a down payment of at least 20%
- No upfront Mortgage Insurance with down payment of less than 20%
- Mortgage insurance is removable when home equity reaches 20% to the loan value
- No Pre- Payment Penalty (if you decide to pay your loan sooner, you can do it with no penalty)