Homebuyers who want to purchase property in FL with a low down payment and competitive loan terms can apply for conventional mortgages.
With the right qualification criteria, your down payment with a conventional home loan might be just 3%.
What is a Conventional Loan?
A conventional loan in FL is one within the conforming loan limits for Fannie Mae and Freddie Mac. If you need to borrow more, you can apply for a jumbo mortgage.
What Are the Conventional Loan Limits in Florida in 2020?
Every county has its own conventional loan limits. So, to figure out if you can buy a home with a conventional loan, you need to check those limits for the county where you are house shopping.
Cape Coral is located in Lee County. Here are the Lee County, FL conventional loan limits:
These conventional loan limits likewise apply to the Lee County seat, neighboring Fort Myers. The limits are also the same for Pinellas County where St. Petersburg is located. Miami-Dade County features these limits as well.
In fact, the majority of Florida counties share these same loan limits, with the exception of the more expensive Monroe County, which features slightly higher limits.
Benefits of Conventional Loans in FL
Here are some of the advantages of qualifying for a conventional mortgage in Florida:
- Conventional mortgages with fixed rates are available, as are those with adjustable rates. Longer and shorter loan terms are available for differing needs.
- Conventional mortgages start out with down payments as low as 3%.
- It is fast and easy to process a conventional loan. This can make a conventional mortgage a suitable option if closing fast is a priority.
- Compared to requirements to qualify for a jumbo mortgage, those for conventional loans are more relaxed.
- Just one appraisal is needed for a conventional mortgage versus the two required for a jumbo loan.
- You do not have to purchase private mortgage insurance with a conventional home loan.
Qualifying for Conventional Loans in FL
Are you eligible for a Florida conventional mortgage? Here are the requirements:
- You must be borrowing within the previously stated conventional loan limits for your county.
- You need to get one appraisal performed on the property.
- FICO score requirements for conventional mortgages depend on the lender you use, but a minimum credit score requirement of around 620 is typical.
- Usually, the debt-to-income (DTI) ratio is required to be no higher than 43%, but there can be exceptions if your credit score is sufficiently high or you have high cash reserves or assets.