Conventional Loans in Florida: Down Payment, PMI, Credit and Condo Rules

Short answer

A conventional loan in Florida is a mortgage that follows Fannie Mae or Freddie Mac rules, with as little as 3% down and a 2026 one-unit limit of $832,750 in most of the country. Put down less than 20% and you pay private mortgage insurance (PMI), which you can ask to cancel once you reach 80% of the original value. In Florida, the condo building and its inspections often matter as much as your credit.

What a conventional loan is, and the 2026 limit

A conventional loan is any mortgage not insured by a government agency such as FHA, VA or USDA. Most are "conforming": they meet Fannie Mae or Freddie Mac guidelines so the lender can sell them. That is why the rules below come from the Fannie Mae Selling Guide and Freddie Mac.

• 2026 conforming limit: $832,750 for a one-unit home in most of the U.S., up $26,250 from 2025, per FHFA. High-cost areas can go up to $1,249,125. Above the limit for your county, the loan becomes a jumbo loan.
• Occupancy: primary homes, second homes and investment property all qualify. FHA only covers primary homes.
• Units: 1 to 4 units, with lower maximum LTV on 2-4 units and investment property.
• Terms: fixed rates (commonly 15 to 30 years) and ARMs.

Check your county in our Florida conforming limits table. For the basics of the term, see what is a conforming loan. Figures are as of October 2026.

Three ways to put 3% down

Fannie Mae and Freddie Mac allow 97% loan-to-value on a purchase. There are three main paths:

• Standard 97% LTV (Fannie Mae): at least one borrower must be a first-time buyer, meaning no home owned in the past three years. Fixed rate only, up to 30 years, 1-unit primary home (condos and PUDs included). No income limit. High-balance loans are not eligible.
• HomeReady (Fannie Mae): 3% down, you do not need to be a first-time buyer, and income must be at or below 80% of the area median income (AMI) for the property's location.
• Home Possible (Freddie Mac): 3% down with flexible sources of funds, income capped at 80% of AMI, and eligible on 1-4 unit homes, condos and PUDs.

How the income limit works: the cap is based on the median income where the home is, not where you live today. It counts qualifying income, not every dollar in the household. Look up the exact figure for an address with Fannie Mae's AMI Lookup Tool or Freddie Mac's Home Possible eligibility map. Miami-Dade, Broward and Palm Beach have different medians, so the same income can qualify in one county and not the next.

Homebuyer education: if every borrower on the loan is a first-time buyer, at least one must complete an approved course on HomeReady and on any purchase above 95% LTV. Fannie Mae's HomeView course counts.

Down payment assistance can stack on top of these programs; see Florida down payment assistance programs.

PMI: what it is and how it comes off

With less than 20% down, the lender requires private mortgage insurance (PMI). It protects the lender, not you. The monthly cost depends mostly on your credit score and down payment, so the same loan can carry very different PMI for a 760 score and a 660 score.

Unlike FHA mortgage insurance, PMI is not permanent. Under the federal Homeowners Protection Act, as explained by the CFPB:

• At 80%: you can ask your servicer in writing to cancel PMI when your balance is scheduled to reach 80% of the original value, or sooner with extra payments. You must be current, have no junior liens, and may need to show the value has not dropped.
• At 78%: PMI generally ends automatically when the scheduled balance hits 78% of the original value, if you are current.
• At the midpoint: it must end the month after the halfway point of the loan term, 15 years on a 30-year loan, even if the balance is higher.

"Original value" is usually the lower of the price or the appraisal at purchase. Fannie Mae and Freddie Mac may offer better cancellation terms, never worse. Lender-paid PMI follows different rules.

Credit score, DTI and maximum LTV

• Credit score: Fannie Mae does not set a minimum score for loans approved through its Desktop Underwriter (DU). Manually underwritten loans need 620 on a fixed rate and 640 on an ARM. Most lenders add their own minimums, and your score drives both price and PMI cost.
• Debt-to-income (DTI): DU can approve up to 50% total DTI. Manual underwriting caps at 36%, or 45% with the credit score and reserves the Eligibility Matrix requires.
• Maximum LTV on a purchase (DU): 97% on a 1-unit primary home with a fixed rate (95% on an ARM), 95% on 2-4 unit primary homes, 90% on a second home, 85% on a 1-unit investment property and 75% on a 2-4 unit investment property.

Investment property loans are business-purpose loans. If the numbers do not fit conventional, a DSCR loan qualifies investors on rent instead of personal income.

These are guideline maximums as of October 2026. Approval depends on the full file and is subject to credit approval.

Florida condos: the review that decides the loan

Fannie Mae has a section of its Selling Guide (B4-2.2-04) with condo rules specific to Florida. The lender reviews the building, not just you, and the type of review limits how much you can borrow.

• Limited review: in Florida, the fast "limited review" only works up to 75% LTV on a primary home and 70% on a second home or investment property. Put down less and the lender must do a full review of the building.
• Full review or Fannie approval: needed for low-down-payment loans. With a Fannie Mae-approved project, the table allows up to 97% LTV (DU) on a primary home, 90% on a second home and 85% on an investment unit.
• New and converted buildings: attached units in new or newly converted Florida projects need Fannie Mae project approval through its PERS process.

Milestone inspections: under Florida Statutes 553.899, condo and co-op buildings three habitable stories or taller need a structural milestone inspection by December 31 of the year the building turns 30, then every 10 years. Local officials may require it at 25 years in areas such as near salt water. See what is a milestone inspection.

SIRS: Florida Statutes 718.112 requires a structural integrity reserve study at least every 10 years for condo buildings three stories or taller, covering the roof, structure, fireproofing, plumbing, electrical, waterproofing and windows. For budgets adopted on or after December 31, 2024, owners in buildings that must have a SIRS generally cannot vote to waive or reduce those reserves. Higher reserves mean higher HOA dues, which count in your DTI, and underfunded buildings can mean special assessments.

Bottom line: a building that passes review is warrantable. One that does not may need a non-warrantable condo loan. Send us the address before you make an offer.

Conventional vs FHA in one minute

• Down payment: conventional 3% (with the rules above) vs FHA 3.5% with a 580+ score.
• Loan size: conventional up to $832,750 vs FHA up to $667,000 for one unit in Miami-Dade, Broward and Palm Beach in 2026.
• Mortgage insurance: PMI can be cancelled; FHA charges a 1.75% upfront premium plus an annual premium that, with under 10% down, lasts for the life of the loan.
• Who it fits: strong credit usually favors conventional. Lower scores or higher debt often favor FHA.

Our FHA vs conventional in Miami-Dade guide compares the two in detail. Rates vary daily; call 305-425-1990 for today's pricing on both.

QMS Lending (NMLS #1781090) is an independent mortgage broker in Miami, FL, shopping 100+ lenders in English or Spanish. We price conventional loans next to FHA so you see total payment and cash to close side by side. Subject to credit approval.