Florida Conventional Loans

Florida conventional loans are the most versatile option on the market: as little as 3% down, no upfront mortgage insurance fee, and PMI that actually goes away.

Key features of Florida conventional loans

• Down payment from 3% through HomeReady or Home Possible
• PMI terminates automatically at 78% LTV, or on request at 80%
• No upfront mortgage insurance premium
• 2026 conforming limit of $832,750 in most Florida counties
• 15, 20, 25 and 30-year terms
• Fixed and adjustable rate options
• Seller concessions from 3% under 10% down, rising to 9% at 25% down
• Primary residence, second home and investment property

Getting rid of PMI is not automatic, and the difference costs real money

Every comparison page says PMI cancels while FHA insurance does not. True, but the mechanics decide when you actually stop paying, and in Florida that gap matters.

Automatic termination arrives at 78% loan-to-value calculated on your original amortization schedule. In other words, the lender uses the purchase price and your scheduled payments, and completely ignores what the home is now worth. On a 30-year loan with 5% down, that point sits around year nine.

However, you do not have to wait. You can request cancellation at 80% based on the current appraised value, which is where Florida buyers gain. If your home appreciated 20% since closing, you may reach that threshold in two or three years rather than nine. You will need to order an appraisal, usually $500 to $700, and most servicers require two years of ownership and a clean payment history. Therefore the appraisal pays for itself within a few months if PMI is costing you $150 or more monthly.

Set a calendar reminder for two years after closing, then check your value. Nobody at the servicer will do this for you.

Who this suits

• Buyers putting down between 5% and 20%
• Borrowers with credit scores of 680 or higher, who see the best pricing
• Anyone who wants mortgage insurance to end rather than run for the life of the loan, unlike FHA
• Second home and investment property buyers, since government programs exclude both
• Buyers above the USDA or FHA limits who do not qualify for a VA loan

Florida-specific notes

• The 2026 conforming limit is $832,750 in most counties, and higher in Monroe County
• Cancelling PMI saves roughly $100 to $300 a month against permanent FHA insurance
• Documentary stamp tax adds about $0.70 per $100 on the deed
• These loans pair with Florida Hometown Heroes for down payment assistance
• Because agency condo rules are lighter than FHA’s, conventional financing often works on Florida condos that FHA rejects

Sources: Fannie Mae HomeReady product terms and the CFPB guidance on removing private mortgage insurance, 2026. Servicer requirements vary, so confirm your own before ordering an appraisal.