North Florida Mortgage office on Sutton Park Drive, Jacksonville

Conventional loan

Lowest long-term cost.For qualified borrowers.

Q: When does PMI drop off?

Private mortgage insurance is required when you put less than 20% down. PMI drops automatically once your loan-to-value reaches 78%, and you can request removal at 80% LTV. PMI does not stay for the life of the loan the way FHA's MIP often does.

Q: What's the conforming loan limit in Duval County?

Conforming limits are set annually. For 2026, the standard limit is the same across most of NE Florida. Loans above the limit are 'jumbo' and follow different underwriting; see our jumbo loan page.

Q: Can I get a conventional loan as a first-time buyer?

Absolutely. Fannie Mae HomeReady and Freddie Mac Home Possible specifically target first-time and lower-income buyers with 3% down minimums and reduced PMI. We'll check your eligibility against both.

Q: What's the rate difference vs FHA?

It depends on credit score and down payment. At 740+ credit and 20%+ down, conventional usually wins on total cost. Below 680 credit, FHA often beats conventional once PMI is factored in. We'll model both side by side.

Conventional loans are mortgages backed by Fannie Mae or Freddie Mac. They typically have the best rates and lowest total cost for borrowers with strong credit and a meaningful down payment.

Get Pre-Approved (904) 389-4635

What a conventional loan is

Unlike FHA or VA, conventional loans are not insured by a government agency. Instead, they conform to underwriting standards set by Fannie Mae and Freddie Mac so they can be sold into the secondary market. That secondary-market liquidity is why conventional loans are so widely available and why pricing is often the best for borrowers who fit the box.

Who qualifies

Eligibility at a glance

What underwriting wants to see.

Min down payment

On Fannie Mae HomeReady or Freddie Mac Home Possible. 5% is more typical.

620

Min credit score

Friendlier rates above 680. Best pricing at 740 and above.

<45%

DTI ratio

Debt-to-income at 45% or below for most files. Some programs flex higher.

Other qualifying considerations:

Stable income with documentable history (W-2 or full tax returns)
Reserves: typically 2-6 months of mortgage payments in the bank after closing
The property is owner-occupied, second home, or investment (different programs for each)

When conventional is the right call

740+ credit score: best rates, smallest premium over the index
20%+ down payment: skip PMI entirely from day one
Good credit history and strong reserves: file fits the conforming box cleanly
Investment property or second home: conventional is the standard path
Refinance once you have 20% equity to drop existing mortgage insurance

When to look at other programs

Sub-620 credit: FHA likely a better fit
Need 0% down and qualify for VA or USDA: those programs save more
Self-employed with hard-to-document income: bank-statement loan may unlock approval

Want a number before you talk to anyone? See what you can qualify for using this week's Freddie Mac rate. No application, no credit pull.

Conventional questions

What people ask before applying.

When does PMI drop off?

Private mortgage insurance is required when you put less than 20% down. PMI drops automatically once your loan-to-value reaches 78%, and you can request removal at 80% LTV. PMI does not stay for the life of the loan the way FHA's MIP often does.

What's the conforming loan limit in Duval County?

Conforming limits are set annually. For 2026, the standard limit is the same across most of NE Florida. Loans above the limit are 'jumbo' and follow different underwriting; see our jumbo loan page.

Can I get a conventional loan as a first-time buyer?

Absolutely. Fannie Mae HomeReady and Freddie Mac Home Possible specifically target first-time and lower-income buyers with 3% down minimums and reduced PMI. We'll check your eligibility against both.

What's the rate difference vs FHA?

It depends on credit score and down payment. At 740+ credit and 20%+ down, conventional usually wins on total cost. Below 680 credit, FHA often beats conventional once PMI is factored in. We'll model both side by side.

Keep reading

Related, in plain English.

FHA vs Conventional: Which Loan Is Cheaper
FHA and conventional loans cost differently depending on your down payment and credit score.
Using Gift Funds for Your Down Payment
Family can legally help with your down payment on an FHA or conventional loan.
What Credit Score to Buy a House in Florida
What credit score to buy a house in Florida depends on your loan type.

Ready for the best rate

Get a real conventional quote today.

Nine wholesale lenders compete for conforming files. We bring the best three; you pick.

Get Pre-Approved (904) 389-4635