Conventional Loan
Learn About Adjustable-Rate Mortgages
A conventional loan is one of the most popular mortgage options for homebuyers in Florida and Georgia. If you have solid credit, stable income, and want flexibility in your financing, a conventional mortgage may be the right fit.
At Florida Wholesale Mortgage, we help buyers compare conventional loans against FHA, VA, and other programs to determine which option aligns best with your financial goals.
What Is a Conventional Loan?
A conventional loan is a mortgage that is not insured or guaranteed by the federal government. Unlike FHA, VA, or USDA loans, conventional loans are backed by private lenders.
This means:
• The lender assumes the risk
• Credit and income guidelines may be stricter
• More flexibility in property types and loan structures
Conventional loans can be used to:
• Purchase a primary residence
• Buy a second home
• Invest in rental property
• Refinance an existing mortgage
There are two main categories:
Conforming Loans
Meet Fannie Mae and Freddie Mac loan limits and guidelines.
Non-Conforming / Jumbo Loans
Exceed conforming loan limits and are used for higher-priced homes.
Who Qualifies for a Conventional Loan?
While exact requirements vary, most borrowers need:
• Minimum credit score of 620 (higher scores receive better rates)
• Stable employment and verifiable income
• Debt-to-income ratio typically under 45–50%
• Down payment starting as low as 3% for qualified buyers
Stronger credit scores (680+) typically receive better pricing and lower monthly payments.
You’ll also need documentation such as:
• Pay stubs
• W-2s or tax returns
• Bank statements
• Asset verification
Benefits of a Conventional Loan
1. Competitive Interest Rates
Conventional loans often offer lower interest rates for borrowers with strong credit profiles.
2. Flexible Down Payment Options
Qualified buyers may put down as little as 3%.
With 20% down, you avoid private mortgage insurance (PMI) completely.
3. Cancelable Mortgage Insurance
If you put down less than 20%, PMI can be removed once you reach sufficient equity — unlike FHA loans, which may carry mortgage insurance for the life of the loan.
4. Higher Loan Limits Available
Jumbo conventional loans allow financing for higher-priced homes that exceed conforming limits.
5. Ideal for Investment Properties
Conventional loans are commonly used for second homes and rental properties.
Types of Conventional Loans
Fixed-Rate Mortgage
• Stable interest rate
• Consistent monthly payments
• Common terms: 15-year or 30-year
Adjustable-Rate Mortgage (ARM)
• Lower initial interest rate
• Adjusts after a fixed period
• Good for short-term ownership strategy
Jumbo Loan
• For higher-priced homes
• Exceeds conforming loan limits
• May require stronger credit and reserves
Is a Conventional Loan Right for You?
A conventional mortgage is often ideal if you:
• Have good to excellent credit
• Want lower long-term mortgage insurance costs
• Plan to avoid government-backed loan restrictions
• Are purchasing in Florida or Georgia
• Want flexibility with property type
Every buyer’s financial situation is different. The best loan isn’t always the most advertised one — it’s the one that aligns with your income, debt, savings, and long-term goals.
Contact Florida Wholesale Mortgage: Angela Smith, Mortgage Specialist Let’s review your numbers and find the best structure for your situation.
About Us
Florida Wholesale Mortgage brings over 20 years of lending experience and consistently ranks among the highest in overall customer satisfaction among Florida mortgage companies. Angela Smith proudly serves homebuyers across the entire state of Florida, with a strong local focus in Southwest Florida, delivering personalized mortgage solutions tailored to each client’s goals.
Angela Smith | Mortgage Loan Officer
Florida Wholesale Mortgage
Phone: 239-980-6669
Email: [email protected]
NMLS #2666684 | Licensed in FL
Florida Wholesale Mortgage LLC
NMLS #2180491
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© 2026 Florida Wholesale Mortgage: Angela Smith – Mortgage Loan Officer
Serving: Naples • Fort Myers • Cape Coral • Estero • Bonita Springs • Southwest Florida