Conventional Home Loan
Conventional Home Loans
A Conventional loan is one of the most popular types of home loans. These loans are not backed by the government like (FHA or VA loans)— instead, they follow the rules set by Fannie Mae and Freddie Mac. If you have good credit and steady income, this type of loan may be a great fit.
Basic Requirements
To qualify for a conventional loan in Miami-Dade and or state of Florida, the loan amount must fall within the annual conforming loan limits set by Fannie Mae, which may be higher in certain high cost South Florida areas. This type of loan must be a first mortgage, meaning it's the main financing used to purchase or refinance your home. Conventional loans typically have terms of up to 30-years, with fixed monthly payments that fully pay off the loan over time. Eligible properties include single-family homes, condos, townhomes and 2- to 4-unit properties, as long as the borrower occupies one of the units as their primary residence. If your down payment is less than 20%, private mortgage insurance (PMI) will be required until you reach at least 20% equity in the home. Conventional loans are a great option for Miami homebuyers who have solid credit and stable income, offering flexibility, competitive rates, and strong long-term benefits.
Who Can Qualify
To qualify for a Conventional Loan in Miami Florida, borrowers must meet certain credit, income, and documentation requirements set by Fannie Mae. Eligible applicants include U.S. citizens, permanent residents, and lawful non-permanent residents who can provide proof of legal status. Most lenders require a minimum credit score of 620, though higher scores may help you secure better interest rates and lower mortgage insurance costs. Borrowers should have a stable income, a solid employment history, and a debt-to-income (DTI) ratio typically below 50%. Lenders will verify your income using recent pay stubs, W-2s, tax returns, and bank statements. If you don't have traditional credit, you may still qualify by showing alternative credit history, such as on time rent or utility payments. Conventional loans reward financial responsibility, making them an excellent option for Miami Florida homebuyers who want flexible terms, competitive rates, and room to build long-term equity.
Loan Options, Property Standards and What's Not Allowed
Conventional Loans in Miami offer flexible options to fit different financial goals. Buyers can choose a
Purchase Loan to buy a new home, a
Limited Cash-Out Refinance to lower their interest rate or adjust loan terms, or a
Cash-Out Refinance to access home equity for improvements or debt payoff. These loans can be used to finance
single-family homes, condos,
townhomes, or multi-unit properties (up to four units), as long as the property is
safe, structurally sound, and meets Fannie Mae’s appraisal standards.
Homes must also comply with
local building codes and have
clear title insurance to confirm ownership. However, not all loan types are eligible—interest-only loans, balloon payments, negative amortization, and stated-income or no-doc loans are not allowed under Fannie Mae guidelines. Additionally, prepayment
penalties are prohibited, protecting borrowers who may want to pay off their loan early. With clear property standards and straightforward loan options,
Conventional Loans give Miami homebuyers confidence, flexibility, and long-term value in one of Florida’s most dynamic real estate markets.
Why Choose a Conventional Loan
Choosing a Conventional Loan in Miami is a smart move for homebuyers who want flexibility, stability, and long-term savings. These loans often offer lower interest rates, especially for borrowers with strong credit and steady income. You can choose from fixed or adjustable-rate options, customize your loan term up to 30 years, and remove private mortgage insurance (PMI) once you reach 20% equity—helping you save more over time. Conventional loans can be used for primary homes, second homes, or investment properties, giving you more control over your real estate goals.
If you’re ready to explore your homeownership options, I’m here to guide you every step of the way. From pre-approval to closing, I’ll help you compare loan programs, understand your numbers, and choose the option that fits your financial goals best.
Let’s make your dream of owning a home in Miami a reality—contact me today to get started on your Conventional Loan
pre-approval.
FAQ
What types of lenders do you work with for home loans?
We work with a diverse range of lenders, including private mortgage companies to offer various loan options tailored to your needs.
How do I choose the right lender for my home loan?
Selecting the right lender involves comparing rates, loan types, fees, and customer service. We guide you through this process to ensure you make an informed choice.
What should I consider when comparing mortgage lenders?
Key factors to consider include interest rates, closing costs, loan types offered, lender reputation, and turnaround times for processing applications.
Can I switch lenders after pre-approval?
Yes, you can switch lenders even after pre-approval. However, be cautious as this could affect your financing timeline. We can help you make a smooth transition.
What factors influence my mortgage rate from lenders?
Mortgage rates are influenced by your credit score, the type of loan, the loan amount, the down payment percentage, and current market conditions.
Do lenders require mortgage insurance?
Most lenders require mortgage insurance if your down payment is less than 20%. This protects the lender in case of default. We can discuss options to potentially reduce or eliminate this cost.
How long does it take to get loan approval from lenders?
The loan approval timeline varies but typically takes a few days, depending on the lender, loan type, and the completeness of your documentation.
What documents do I need to provide to lenders?
Common documents include pay stubs, tax returns, bank statements, proof of assets, and identification. We’ll provide a comprehensive checklist to ensure you’re prepared.