Conventional Loans

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.

What that 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 of Conventional Loans

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 — stronger credit scores of 680+ typically receive better pricing and lower monthly payments.

  • Stable employment and verifiable income

  • Debt-to-income ratio typically under 45–50%

  • Down payment starting as low as 3% for qualified buyers

  • Financial and income documentation, such as:

    • Pay stubs

    • W-2s and/or tax returns

    • Bank statements

    • Asset verification

Benefits of a Conventional Loan

Competitive Interest Rates: Conventional loans often offer lower interest rates for borrowers with strong credit profiles.

Flexible Down Payment Options: Qualified buyers may put down as little as 3%. With 20% down, you avoid private mortgage insurance (PMI) completely.

Ability to Cancel 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.

Higher Loan Limits Available: Jumbo conventional loans allow financing for higher-priced homes that exceed conforming limits.

Ideal for Investment Properties: Conventional loans are commonly used for second homes and rental properties.

Types of Conventional Loan

Fixed-Rate

  • Stable interest rate

  • Consistent monthly payments

  • Common terms are 15-year or 30-year

Adjustable-Rate

  • 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, want to avoid government-backed loan restrictions, and want more flexibility with property type you are purchasing.

Remember, every buyer’s financial situation is different, and the best loan isn’t always the most advertised one — it’s the loan that aligns with your income, debt, savings, and long-term goals.

Ready to Get Started?

Let Angela help you uncover exactly how much funding you can access, what your payment would look like, and what Conventional Loan option is the right fit for your goals! Licensed to serve homeowners across the entire state of Florida — from the Panhandle to the Keys, and everywhere in between. Based in Southwest Florida and deeply familiar with markets like Port Charlotte, Naples, Fort Myers, Cape Coral, Estero, and Bonita Springs, she brings the same personalized approach to clients statewide. With access to multiple lenders through Florida Wholesale Mortgage, Angela shops the market so you don't have to.


Get a Complimentary Consultation → No obligation, no hard credit pull to get started.
Call: 239-980-6669 | NMLS #2666684 | Licensed in FL

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 home-buyers 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
 nmlsconsumeraccess.org