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Conventional Mortgage Loans

Conventional Loans

The most popular mortgage in America — and probably the right one for you.

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Conventional loans are mortgages not backed by a government agency. They follow Fannie Mae and Freddie Mac guidelines, offer some of the most competitive rates available, and are the most flexible loan type for buyers with solid credit. About 65% of all U.S. mortgages are conventional loans — for good reason.

Key Benefits

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Down payments as low as 3%

First-time buyers can put as little as 3% down. Repeat buyers can put down 5% with no PMI penalty.

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No upfront mortgage insurance

Unlike FHA, conventional loans never charge an upfront MIP. You save thousands at closing.

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PMI cancels automatically

Once you reach 20% equity (through payments OR appreciation), PMI drops off automatically — no refinance required.

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Use for any property type

Primary residences, second homes, AND investment properties all qualify for conventional financing.

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Multiple term options

Choose 10, 15, 20, or 30-year terms. Pick fixed or adjustable rates. Customize to your goals.

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Higher loan limits than FHA

2024 conforming limit is $766,550 (higher in high-cost Florida counties like Miami-Dade and Palm Beach).

Is This Right for You?

Conventional loans are best for buyers with credit scores of 680+ who want the lowest total cost of borrowing, plan to put down at least 5%, and want flexibility on property type. If you have a strong credit history, conventional is almost always the cheapest option long-term.

Every situation is unique. The fastest way to know if this is the right loan for you is to talk to a licensed Divito Lending advisor — we will look at your full picture and recommend the loan type that actually fits.

Free pre-approval in 24 hours. No application fee, no impact to your credit, no obligation.
Typical Requirements
Minimum Credit Score 620+
Minimum Down Payment 3% (first-time) / 5% (repeat)
Max Loan (Conforming) $766,550 (2024)
Debt-to-Income Ratio Up to 50%
PMI Required Below 20% Down
Self-Employed OK Yes (with 2 yrs returns)
Property Types Primary, Second, Investment

Common Questions

What credit score do I need for a conventional loan?

Most lenders require 620+, but the best rates go to borrowers with 740+ scores. Below 700, you may pay slightly higher PMI rates and a small rate adjustment.

How much PMI will I pay on a conventional loan?

Typically 0.3%–1.5% of the loan amount per year, depending on your down payment and credit score. The good news: it cancels automatically once you reach 20% equity.

Can I use a conventional loan for an investment property?

Yes. Conventional loans allow up to 10 financed properties per borrower. Investment properties require 15–25% down and typically have rates 0.5–0.75% higher than primary residences.

What is the 2024 conforming loan limit in Florida?

$766,550 for most counties. Higher-cost areas like Miami-Dade, Monroe, and Collier counties have limits up to $929,200. Above these limits, you need a jumbo loan.

Ready to See What You Qualify For?

Get pre-approved in minutes with no credit pull, or schedule a no-pressure conversation with a licensed Florida mortgage advisor.

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