CONVENTIONAL LOANS · The Galli Team
Florida Conventional Loans · 2026

The most flexible
mortgage in America.

Conventional loans dominate the U.S. mortgage market for one reason: flexibility. As little as 3% down. PMI that actually cancels. Works for primary, second home, or investment. Loan amounts up to $832,750 in 2026.

  • 3% down available for first-time buyers
  • PMI cancels at 78% LTV — unlike FHA's lifetime MI
  • Primary, second home, or investment — all eligible
  • Up to $832,750 ($990,150 in Monroe County)
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Quick Answer

What is a Conventional Loan?

A conventional loan is a mortgage that isn't backed by the federal government. Instead, it conforms to guidelines set by Fannie Mae and Freddie Mac. In 2026, conventional loans require as little as 3% down for first-time buyers (5% standard), a 620+ credit score, and a debt-to-income ratio under 50%.

The maximum conforming loan amount in 2026 is $832,750 in most Florida counties (up to $990,150 in Monroe County). Anything above is a jumbo loan. Conventional loans work for primary residences, second homes, and investment properties — and PMI cancels automatically at 78% loan-to-value, unlike FHA's lifetime mortgage insurance.

Why Conventional Wins

Four reasons it's the most popular mortgage in America.

60% of all U.S. mortgages are conventional. Once you understand why, you'll see it's not by accident.

I

As Low as 3% Down

First-time buyers can put just 3% down on a conforming loan. Standard buyers: 5%. No need for the mythical 20%.

II

PMI That Actually Cancels

Hit 78% LTV and your PMI drops off automatically. Unlike FHA, you're not stuck paying mortgage insurance forever.

III

Works for Any Property

Primary residence, vacation home, or rental property. Conventional is the only program that fits all three.

IV

Better Long-Term Rates

For strong-credit buyers (740+), conventional usually beats FHA on total cost — once you factor in MI savings.

Down Payment Options

Pick the down payment that fits your life.

The right down payment depends on your savings, your monthly budget, and your goals. Here are the four most common conventional loan structures.

3%
First-Time Buyer

HomeReady / Home Possible

  • Min credit: 620
  • PMI: Required
  • Income cap: Yes (80% AMI)
  • Best for income-eligible first-timers
10%
Lower PMI

Conforming 30-Year

  • Min credit: 620
  • PMI: Lower premium
  • Best monthly payment
  • Sweet spot for move-up buyers
20%
No PMI Required

Conforming 30-Year

  • Min credit: 620
  • PMI: NONE
  • Best rate pricing
  • Lowest total cost over life of loan
Real Payment Examples

What your Florida conventional loan actually costs.

Sample monthly payments based on Q2 2026 conventional rates. Estimates only — actual rates vary by credit and program.

30-Year Fixed Conventional

Rate Assumed: 6.375% APR · 5% Down
Home Price
Down Payment
Loan Amount
Est. P&I Monthly
$350,000
$17,500
$332,500
$2,075
$450,000
$22,500
$427,500
$2,668
$550,000
$27,500
$522,500
$3,261
$650,000
$32,500
$617,500
$3,854
$800,000
$40,000
$760,000
$4,743
P&I = Principal + Interest only. Does not include property taxes, homeowners insurance, or PMI (typically adds $400-$900/month combined). Get a personalized quote using our Florida Mortgage Calculator.
2026 Florida Loan Limits

How much can you borrow conventional?

The Federal Housing Finance Agency (FHFA) updates conforming loan limits annually. Here's what 2026 looks like in Florida.

2026 Conforming Limits · Florida

Single-Family Home
Standard Conforming Limit Most Florida counties — Hillsborough, Orange, Sarasota, Manatee, Pinellas, etc.
$832,750
High-Cost Area Limit Monroe County (Florida Keys) only — designated high-cost in 2026
$990,150
2-Unit Property (Duplex) Investment or owner-occupied multi-unit · Standard area
$1,066,050
3-Unit Property (Triplex) Investment or owner-occupied multi-unit · Standard area
$1,288,650
4-Unit Property (Quadplex) Investment or owner-occupied multi-unit · Standard area
$1,601,400
Source: Federal Housing Finance Agency (FHFA), 2026 Conforming Loan Limits. Loan amounts above these limits require jumbo financing. See all loan programs →

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Eligibility Requirements

Do you qualify?

Conventional loans have clear, well-defined eligibility requirements. Here's exactly what you need to qualify in 2026.

Personal Qualification

Credit
620 minimum 640+ for best pricing. 740+ unlocks the lowest rates and lowest PMI premiums.
DTI
50% maximum Total monthly debts (including new mortgage) under 50% of gross monthly income. Lower DTI = better pricing.
Income
2-year history W-2, self-employed, retirees all qualify. Self-employed need 2 years tax returns + YTD P&L.
Reserves
0–6 months Primary residence often needs 0 reserves. Investment properties typically need 6 months of mortgage payments saved.

Property Qualification

Property Type
Single-family, condo, townhome, 1-4 unit All eligible. Condos must be warrantable (have Fannie/Freddie approval).
Occupancy
Primary, second home, OR investment Conventional is the only major program that finances all three property types.
Appraisal
Required (or waived) Some strong files qualify for an appraisal waiver via Fannie Mae's automated underwriting.
Loan Amount
Up to $832,750 ($990,150 in Monroe County). Above this requires jumbo financing.
Conventional vs FHA

Conventional or FHA? Here's the honest comparison.

The right answer depends on your credit, down payment, and long-term plans. We help you run the numbers both ways.

Factor
Conventional
FHA
Min Down Payment
3% (first-time)
3.5%
Min Credit Score
620
580 (more flexible)
Mortgage Insurance
Cancels at 78% LTV
Lifetime (under 10% down)
Upfront MI Premium
None
1.75% of loan amount
Max Loan (FL Standard)
$832,750
$541,287
Investment Property
Yes
No (owner-occupied only)
Second Home
Yes
No
Best For
Credit 680+, long-term owners, move-up buyers
Credit 580-680, first-time, short-term holders

Not sure if conventional is right for you?

Chris and his team will run both conventional AND FHA scenarios side-by-side — and recommend the one that saves you the most money over your ownership timeline.

Get Both Scenarios →
Our Process

From application to keys in 21 days.

Most lenders take 35-45 days. We average 21-24 days. Here's how we move faster than the rest.

1
Day 0
Apply

60-second application. No SSN needed to start.

2
Day 0
Pre-Approval

Verified pre-approval letter within 2 hours.

3
Day 1–14
Underwriting

Appraisal, title, insurance, full underwriting.

4
Day 15–20
Clear to Close

Final approval, closing disclosure issued.

5
Day 21
Keys in Hand

Sign at closing. Get the keys. Move in.

Real Client Stories

Florida buyers. Real conventional loan outcomes.

This is what happens when 29 years of experience meets the most flexible loan in the market.

"

I thought I needed 20% down. Chris showed me a 5% conventional with PMI that I'll pay off in three years. Got into my first home with $22K down instead of $90K. Wish I'd called him a year sooner.

EC
Elena C. Sarasota Buyer
"

Bought a second home in Venice with 10% down on conventional. Chris ran the conventional vs jumbo numbers — saved us $14,000 over five years by staying under the conforming limit. He's a strategist, not just a lender.

RB
Robert B. Venice Buyer
"

Refinanced from FHA to conventional after our home appreciated. Chris dropped our PMI permanently and our payment fell $340/month. The conversation took 15 minutes. Pure value.

DM
Derrick M. Tampa Refinance
FAQ

Conventional loan questions, answered.

The questions Florida buyers ask us most. Tap to expand. If something isn't here, text Chris at 941.529.1040.

How much down payment do I need for a conventional loan?
In 2026, conventional loans require as little as 3% down for first-time buyers using HomeReady or Home Possible programs. Standard conventional requires 5% down. 10% is the sweet spot for lower PMI. 20% down eliminates PMI entirely. The right amount depends on your savings, monthly payment target, and how long you plan to own.
What credit score do I need?
620 is the minimum credit score for conventional loans. However, scores below 680 face higher PMI premiums and rate adjustments. Scores of 740+ unlock the lowest rates and lowest PMI. If your score is 600-619, FHA may be a better path — and we'll tell you so honestly rather than force a conventional fit.
Can I use a conventional loan for an investment property?
Yes. Conventional loans are the most common path for non-DSCR investment property financing. You'll typically need 15-25% down, 6 months of reserves per property, and a maximum DTI of 45%. Conventional is the ONLY major program (besides DSCR) that finances investment properties — FHA and VA are owner-occupied only.
When does PMI cancel on a conventional loan?
PMI on a conventional loan cancels automatically when your loan balance reaches 78% of the ORIGINAL home value. You can also request cancellation at 80% LTV by calling your servicer — typically requires a new appraisal showing 20%+ equity. This is the major advantage over FHA, where MI sticks for the life of the loan if you put less than 10% down.
What's the difference between conforming and conventional?
All conforming loans are conventional, but not all conventional loans are conforming. "Conforming" means the loan amount falls within Fannie Mae / Freddie Mac limits ($832,750 in 2026 for most Florida counties). "Non-conforming conventional" loans exceed those limits — also known as jumbo loans. Both are conventional. The distinction matters for pricing and qualification.
How long does a conventional loan take to close?
National average: 35-45 days. Galli Team average: 21-24 days. We've closed conventional loans in 14 days when needed. Speed depends on appraisal turnaround, document responsiveness, and clean credit/income files. The biggest delays are usually self-employed income documentation and Florida condo association responses.
Can I get a conventional loan if I'm self-employed?
Yes — though it's harder. Conventional requires 2 years of tax returns showing stable or growing income. The lender uses your NET (after-write-off) income, which often disqualifies business owners who legitimately deduct. If conventional doesn't work, we have bank statement loans, P&L loans, and asset-based programs that fund where conventional can't. Don't assume you can't qualify — talk to us first.
What's the maximum conventional loan amount in Florida?
In 2026, the standard conforming limit in most Florida counties is $832,750 for a single-family home. Monroe County (the Keys) has a high-cost limit of $990,150. Multi-unit properties have higher limits: $1,066,050 (duplex), $1,288,650 (triplex), $1,601,400 (quadplex). Above these, you'll need a jumbo loan.
Can I use gift funds for my down payment?
Yes. Conventional loans allow 100% of the down payment from gift funds on primary residences (gifts from a family member, fiancé, or domestic partner). For second homes, you'll need to contribute 5% of your own funds. For investment properties, gift funds are not allowed for the down payment. We provide gift letter templates and walk donors through what's needed.
Should I do conventional or FHA?
Generally: Credit 680+? Conventional wins long-term (PMI cancels, no upfront MI). Credit 580-680? FHA is often the better fit (lower minimum credit, lower rates at lower scores). Long-term owner with appreciation expected? Conventional. Short-term hold (under 3 years)? FHA's lower rates may win. We run BOTH scenarios for every client so you see the math — not just our recommendation.
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