Buying · Florida
Conventional loans
The default for a reason. If your credit and income support it, conventional financing is usually the cheapest way to own a home in Florida — and the mortgage insurance comes off by itself.
What is the minimum down payment on a conventional loan?
Three percent for a qualified first-time buyer, and five percent otherwise. Below 20% equity you pay private mortgage insurance, but unlike FHA it terminates automatically once the balance reaches 78% of the original value, and you can request removal at 80%.
Why PMI matters less than people think
Private mortgage insurance is the reason many buyers wait years to purchase. It should not be. On a conventional loan PMI is removed automatically once the scheduled balance reaches 78% of the original value — that is federal law, not a favour — and you can request removal at 80%.
A fresh appraisal after improvements or appreciation can get you there sooner still. The cost of waiting to avoid PMI is usually far greater than the PMI itself.
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Frequently asked
When does PMI come off a conventional loan?
Automatically once the scheduled balance reaches 78% of the original property value, which federal law requires. You may request removal earlier at 80%, and a new appraisal reflecting improvements or appreciation can bring that date forward.
Is a conventional loan better than FHA?
Usually, if you qualify. Conventional mortgage insurance is removable and often cheaper at good credit scores, while FHA's runs for the life of the loan below 10% down. FHA wins when credit or debt-to-income is tight, which is exactly the comparison we run for you.
Often compared with
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