A 620+ credit score and solid down payment unlock the best rates in Florida. Conventional is the go-to program for move-up buyers, investors, and buyers in high-value markets where FHA's lower limits don't cover the purchase price. Clear2 shops 50+ wholesale lenders to get you competitive pricing without the retail bank margin.
Conventional loans are mortgages that conform to Fannie Mae or Freddie Mac guidelines and are not backed by a government agency. In Florida, the 2026 conforming limit is $832,750 for a standard single-family home statewide, with South Florida counties at the same baseline — well above the FHA ceiling in most markets. As an independent broker, Clear2 shops 50+ wholesale lenders to find the best conventional rate and program for your specific profile.
Unlike FHA loans, conventional loans have no upfront mortgage insurance premium. With 20% down, there's no PMI at all. Even below 20%, PMI cancels automatically when you reach 20% equity, something FHA can't offer with less than 10% down.
The 2026 Florida conforming limit is $832,750, well above the FHA ceiling. Buyers in higher-priced Florida markets often need conventional financing to cover the purchase price without moving into jumbo territory.
Conventional loans can be used for primary residences, second homes, and investment properties. There are no property condition requirements as strict as FHA's Minimum Property Requirements, making conventional the standard choice for fixer-uppers and investment purchases.
Conventional loans offer a wide range of down payment options. The right amount depends on your credit score, monthly budget, and whether you want to avoid PMI entirely.
Income-qualified buyers can put as little as 3% down through Fannie Mae HomeReady or Freddie Mac Home Possible programs. PMI applies and cancels at 20% equity.
The most common entry point for conventional loans. No program-specific income limits. PMI required and cancels automatically at 80% LTV.
A 10% down payment significantly improves your rate tier and lowers PMI costs. Many move-up buyers in Florida land here after equity from a prior home sale.
At 20% down, private mortgage insurance is eliminated entirely. This is the best long-term cost structure for buyers who can save the larger down payment.
PMI protects the lender, not you, but it's a manageable cost that goes away once you build equity. Here's what Florida buyers need to know.
On conventional loans, your credit score directly affects the interest rate you receive through loan-level price adjustments (LLPAs) set by Fannie Mae and Freddie Mac. Higher scores mean lower adjustments, which means a better rate. Here's how the tiers work in practice for Florida buyers.
You can get a conventional loan in this range, but you'll pay more in rate or points. For buyers here, FHA is sometimes the better total-cost option. Clear2 runs both scenarios so you choose the best program, not just the first one offered.
Buyers in this range receive meaningfully better pricing than the 620-699 bracket. LLPA adjustments decrease, PMI rates improve, and the rate gap between FHA and conventional narrows significantly. Most Florida move-up buyers land here.
At 740 and above, you access the most favorable LLPA pricing Fannie and Freddie offer. Combined with Clear2's wholesale lender access, buyers at this tier typically receive the most competitive conventional rates available in Florida without the overhead of a retail bank margin.
The right answer depends on your credit score, down payment, and how long you plan to keep the loan. Clear2 runs both scenarios before recommending one.
Conventional loans are the right choice for a wide range of Florida buyers. Here are the profiles where conventional consistently outperforms the alternatives.
If your credit score is 620 or above and you have a down payment ready, conventional often delivers better long-term cost than FHA — especially once you factor in FHA's lifetime MIP on loans with less than 10% down. Florida buyers frequently choose conventional for both primary and investment purchases.
Conventional is the only conforming option for investment properties and second homes. Florida's strong rental market — particularly in Orlando, Tampa, and South Florida — makes it a go-to for investors building a portfolio. Move-up buyers upsizing in Sarasota, Naples, or the Palm Beaches typically rely on conventional financing.
With a $832,750 conforming limit, conventional covers homes in Miami-Dade, Broward, and other markets where FHA's lower limits leave buyers short. Buyers in Coral Gables, Pinecrest, or Boca Raton regularly need conventional to close at their target purchase price.
Every borrower's situation is different. Here are three realistic examples of Florida buyers who used conventional financing through Clear2.
A couple in Hillsborough County sold their previous home and brought $95,000 in equity toward a $540,000 property in South Tampa. With a 748 credit score and 17% down, conventional pricing was strongly favorable. Clear2 shopped wholesale lenders and locked a rate below what their current bank quoted, saving over $280 per month.
A healthcare worker in Orange County had a 715 credit score and 5% down on a $355,000 townhome. She had a strong income and DTI under 42%. Conventional beat FHA on total cost because PMI would cancel once she reached 80% LTV — FHA's MIP would have remained for the life of the loan.
A Duval County investor purchased a duplex in a growing rental corridor for $290,000 as a non-owner-occupied investment. FHA requires owner-occupancy, so conventional was the only conforming option. With 25% down and a 685 credit score, Clear2 sourced competitive investment-property conventional pricing and closed in 28 days.
Conventional loans require precise matching: the right lender overlay for your credit tier, the right PMI structure for your down payment, and the right product (conforming, high-balance, or jumbo) for your Florida purchase price. As an independent broker, Clear2 does that comparison work across 50+ wholesale lenders before recommending a program.
Clear2's team is licensed in Florida and brings the same wholesale pricing access to Florida buyers as we deliver in Florida — with a direct point of contact from pre-approval through closing.
Clear2 Mortgage2600 W Big Beaver Rd, Suite 100Troy, MI 48084(248) 970-0040
Derek Tinkle is Director of Sales at Clear2 Mortgage, with deep expertise in conventional purchase and refinance financing for Florida buyers. He focuses on finding the right combination of rate, program, and lender overlay across Clear2's 50+ wholesale lender network, helping clients close faster and at lower cost than retail bank alternatives.
Five-star reviews from Clear2 clients on Google.
"Donavin was straightforward and a breeze to work with. Communication was quick and easy. The whole process was seamless and he was available for guidance or questions. I would not hesitate to use Clear2 Mortgage in the future."
"Alex was absolutely amazing from the beginning. He was patient and thorough with all of our questions. He even followed up after the process was finalized to ensure everything was still good. I would recommend him to everyone!"
"The process was seamless and every question I had as a first-time home buyer was answered. My loan officer gave me his professional opinion based on my specific circumstances to personalize my loan."
What is the conforming loan limit in Florida?
The 2026 conforming limit for a single-family home in Florida is $832,750 statewide. This is the Fannie Mae and Freddie Mac purchase ceiling for most FL counties. Monroe County (Florida Keys) has a higher limit at $990,150. Buyers exceeding $832,750 need a jumbo loan, which Clear2 also offers through its wholesale lender network.
Can I use a conventional loan for a rental property in Florida?
Yes. Conventional is the primary conforming option for investment properties. Lenders require a minimum of 15 to 25% down for non-owner-occupied properties, and rates are slightly higher than for primary residences. FHA loans do not allow investment property use, making conventional the standard route for Florida landlords and investors.
Can I cancel PMI on a conventional loan?
Yes. You can request PMI cancellation once your loan balance reaches 80% of the original purchase price, provided you have a good payment history. Federal law requires the lender to automatically cancel PMI when the balance drops to 78% of the original value. This is a major advantage over FHA, where MIP typically stays for the life of the loan with less than 10% down.
What credit score do I need for the best conventional rate in Florida?
Fannie Mae and Freddie Mac price conventional loans through loan-level price adjustments (LLPAs). The most favorable pricing tier starts at 740. Buyers in the 720 to 739 range still receive strong rates, while the 620 to 699 range carries higher adjustments. Improving your score by even 20 points before applying can meaningfully lower your rate. Clear2 reviews your credit profile before recommending a loan program for your Florida purchase.
What is the HomeReady or Home Possible program?
HomeReady (Fannie Mae) and Home Possible (Freddie Mac) are conventional programs allowing 3% down for income-qualified buyers. Both offer reduced PMI rates compared to standard conventional loans at the same LTV. Income limits apply and vary by county in Florida. These programs are well-suited for first-time buyers with strong credit but limited savings.
Why use Clear2 for a conventional loan instead of a bank?
Banks price conventional loans at retail, with their own margin built into the rate. As an independent broker, Clear2 accesses Fannie Mae and Freddie Mac-backed pricing from 50+ wholesale lenders and selects the one with the best rate and lender overlays for your credit and down payment profile. Wholesale conventional rates are typically lower than retail, and our loan officers have direct access to underwriters so questions get answered faster.
No obligation, no hard credit pull. Just a clear picture of what you qualify for from a team licensed in Florida with wholesale access to 50+ conventional lenders.
Clear2 Mortgage, LLC. NMLS #1911663. Licensed Mortgage Broker. 2600 W Big Beaver Rd, Suite 100, Troy, MI 48084. Equal Housing Lender. This is not a commitment to lend. All loans subject to credit approval, property appraisal, and underwriting guidelines. Rates and terms subject to change without notice.
