Conventional Loans

Your Guide to Conventional Mortgages in Florida with Ferrari Lending

Summary:
Conventional mortgages are among the most widely used loan types in Florida for purchasing or refinancing primary residences, second homes, and investment properties. Unlike government-backed loans such as FHA, VA, or USDA, conventional loans are not insured by the federal government, giving borrowers more flexibility—provided they meet higher credit and income standards. In this article, Ferrari Lending explains the ins and outs of conventional mortgages exclusively for Florida homeowners, investors, and real estate buyers.

What Is a Conventional Mortgage?

A conventional mortgage is a home loan that is not part of any government lending program. These loans are issued by private lenders and follow the guidelines set by Fannie Mae and Freddie Mac. If a loan meets the criteria of these agencies—including loan limits, credit requirements, and documentation—it’s considered a conforming conventional loan. In Florida, conventional loans are often used for both owner-occupied homes and non-owner-occupied properties such as second homes and rental investments.

At Ferrari Lending, we help Floridians qualify for and close conventional mortgages across all counties—from Miami-Dade to Palm Beach, Orlando to Tampa, and everywhere in between.

Who Qualifies for a Conventional Loan in Florida?

To qualify for a conventional mortgage in Florida, you’ll typically need to meet the following criteria:

• Credit Score: A minimum of 620 is required, though a score of 700+ will offer better interest rates and lower fees.
• Down Payment: First-time buyers may qualify with as little as 3% down; otherwise, expect to put down at least 5% for primary residences and 10–20% for second homes or investment properties.
• Debt-to-Income Ratio (DTI): Your total monthly debts, including the mortgage, should ideally not exceed 43% of your gross monthly income.
• Employment and Income: Lenders will require at least two years of verifiable income and employment history.
• Assets and Reserves: Additional savings or investment accounts may be required, especially for investment properties.

Property Types You Can Finance with a Florida Conventional Loan

Conventional mortgages in Florida are versatile. You can use them to finance:

• Primary Residences: Single-family homes, condos, and townhouses.
• Second Homes: Vacation or seasonal homes, such as beachfront properties or rural retreats.
• Investment Properties: Rental homes, multi-family units (up to 4), and condos.

Note: For second homes and investment properties, higher credit scores and down payments are typically required.

Benefits of Choosing a Conventional Loan in Florida

Conventional mortgages offer unique advantages for Floridians:

1. Competitive Interest Rates: Especially for borrowers with strong credit and financials.
2. No Upfront Mortgage Insurance Fee: Unlike FHA loans, there’s no required upfront premium.
3. Cancel PMI: If you put less than 20% down, you’ll pay Private Mortgage Insurance (PMI)—but it can be removed once you reach 20% equity.
4. Flexible Loan Terms: Choose from 15, 20, or 30-year fixed options, or adjustable-rate mortgages (ARMs).
5. Wide Eligibility for Property Types: Including condos (common in Florida) and homes within homeowners associations.

Florida-Specific Considerations

Florida’s real estate market includes coastal homes, properties in flood zones, and properties in homeowners associations (HOAs). When applying for a conventional mortgage in Florida:

• Condo Approvals: Make sure the condo project is Fannie Mae or Freddie Mac approved—this is especially important in cities like Miami, Fort Lauderdale, and Naples.
• Flood Zones: Some properties will require additional flood insurance, which can affect your debt-to-income ratio.
• Hurricane Insurance: Windstorm coverage is often required, and insurance premiums must be factored into your monthly obligations.
• Homestead Exemption: Florida homeowners can reduce property taxes by filing for a homestead exemption, which is only available on primary residences.

Ferrari Lending will guide you through these Florida-specific conditions to ensure smooth underwriting and compliance.

Conventional Loan Limits in Florida (2025)

As of 2025, the conforming loan limit in most parts of Florida is $766,550. However, higher limits apply in designated high-cost areas such as Monroe County (Key West). Jumbo loans—those above the conforming limit—are also available through Ferrari Lending but follow separate guidelines.

Why Work with Ferrari Lending?

At Ferrari Lending, we are Florida-based experts in residential and investment financing. With over 15 years of mortgage experience and licensing throughout the state, we understand Florida’s unique housing market, regulatory landscape, and seasonal real estate trends.

We assist Florida clients with:

• Quick and accurate pre-approvals
• Competitive rate shopping from multiple wholesale lenders
• Investment property structuring for Florida rental income
• Support with insurance, HOA, and flood documentation
• Full transparency and white-glove service from application to closing

Final Thoughts

Conventional mortgages remain the go-to choice for many Florida borrowers due to their long-term savings potential, flexible property usage, and competitive terms. Whether you're purchasing a home in Boca Raton, refinancing a condo in Miami, or investing in a vacation rental near Orlando, a conventional loan can be a smart and stable financing solution.

Let Ferrari Lending help you unlock the right mortgage strategy tailored to your goals, budget, and lifestyle.

📞 Call Now: (561) 571-2552
🌐 Visit: www.FerrariLending.com
📩 Email: info@ferrarilending.com

Ready to buy, invest, or refinance in Florida? Let’s make it happen.