Conventional
Fannie Mae & Freddie Mac financing at the lowest market rates.
Conventional loans are the most common path to homeownership for buyers with solid credit and steady income. Built on Fannie Mae and Freddie Mac guidelines, they offer competitive fixed and adjustable rates, flexible terms, and the ability to drop mortgage insurance once you reach 20% equity.
Key highlights
- Down payments as low as 3% for qualified buyers
- Fixed and adjustable terms from 10 to 30 years
- Mortgage insurance cancels at 20% equity
- Primary homes, second homes, and rentals
- Higher loan limits than government programs in many areas
- Buyers with credit scores of 620+
- Borrowers with documented income and reserves
- Anyone wanting to avoid long-term mortgage insurance
Conventional loans remain one of the most popular and versatile mortgage options for homebuyers seeking flexibility, competitive rates, and long-term financial stability. In a dynamic housing market like Miami-Dade County, conventional home loans offer borrowers a wide range of options — from low-down-payment programs to jumbo financing for higher-priced properties.
As home prices evolve and buyer needs become more diverse, conventional loans stand out for their adaptability. Whether you're a first-time buyer, a move-up buyer, an investor, or someone refinancing an existing mortgage, conventional loans provide customizable solutions that fit different financial goals.
Warren Factor helps buyers in Florida understand how conventional loans work, how to qualify, and how to choose the right structure for both short-term affordability and long-term success.
What is a conventional loan?
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the VA or FHA. Instead, these loans follow guidelines set by Fannie Mae and Freddie Mac and are offered by private lenders.
Because conventional loans aren't government-backed, they're often associated with:
- Strong borrower profiles
- Competitive interest rates
- Flexible loan terms
- A wide range of property options
Conventional loans are widely used across Florida and suit both primary residences and investment properties.
Why a conventional loan in Florida?
The Dade County housing market spans everything from entry-level homes to luxury properties. Conventional loans provide the flexibility needed to compete and succeed in such a diverse market.
Flexible down payment options
Contrary to common belief, conventional loans don't always require 20% down. Many programs allow:
- As little as 3% down for first-time homebuyers
- 5–10% down for repeat buyers
- Higher down payments for better rates and lower costs
This flexibility makes conventional loans accessible to a broader range of buyers.
Competitive interest rates
Borrowers with strong credit profiles often secure highly competitive rates with conventional loans. Over time, that can result in significant interest savings compared to other loan programs.
No upfront mortgage insurance
Unlike FHA loans, conventional loans don't require upfront mortgage insurance premiums. PMI may be required with lower down payments, but it can often be removed once sufficient equity is reached.
Types of conventional loan programs
Conventional loans aren't one-size-fits-all. Choose the option that fits the file:
- 01Conventional purchase loans
Buy a primary residence, second home, or investment property. Ideal for buyers seeking flexible terms and competitive pricing.
- 02Conventional fixed-rate mortgages
Predictable monthly payments with rates that stay the same for the life of the loan. Popular terms include 30-year, 20-year, and 15-year fixed — well-suited for buyers planning long-term homeownership.
- 03Conventional adjustable-rate mortgages (ARMs)
Start with a lower introductory rate and adjust over time. Often chosen by buyers who plan to move or refinance within a few years.
- 04Jumbo conventional loans
For properties that exceed conforming loan limits — common in certain areas of Miami-Dade County and beyond.
Who should consider a conventional loan?
Conventional loans suit a wide range of borrowers, especially those with stable income and solid credit:
- 01First-time homebuyers
With low-down-payment options and competitive rates, conventional loans are an excellent choice for first-time buyers who meet credit requirements.
- 02Move-up buyers
Homeowners upgrading to a larger or more desirable property often use conventional loans to leverage equity and secure favorable terms.
- 03Real-estate investors
Conventional loans allow financing for rental and investment properties — a preferred choice for investors.
- 04Buyers with strong credit
Higher credit scores often unlock better rates and lower PMI costs, maximizing the benefits of conventional financing.
- 05Homeowners looking to refinance
Conventional refinance loans can be used to lower rates, shorten loan terms, or remove PMI once equity requirements are met.
Requirements & eligibility
- Credit score
- Most lenders look for a minimum credit score of 620, though higher scores typically result in better rates and terms.
- Debt-to-income ratio (DTI)
- DTI guidelines are generally stricter than government-backed loans. However, strong credit and assets can help offset higher ratios.
- Down payment
- Requirements vary by loan type, property use, and borrower profile. Larger down payments can reduce PMI costs and improve loan terms.
- Income & employment verification
- Borrowers must demonstrate stable, verifiable income. Lenders typically review pay stubs, tax returns, and employment history.
- Property requirements
- Homes must meet appraisal standards and be structurally sound. Conventional loans can be used for single-family homes, condos, townhomes, and multi-unit properties (within guidelines).
Benefits of conventional loans
- Lower long-term costs
- With no upfront mortgage insurance and the ability to remove PMI, conventional loans can become more affordable over time.
- More property options
- Unlike some government programs, conventional loans allow financing for a broader range of property types, including investment properties.
- Strong seller appeal
- In competitive markets, conventional loan offers are often viewed favorably by sellers due to fewer restrictions.
- Customizable loan structures
- Borrowers can choose loan terms, rates, and payment structures that align with their financial plans.
Why choose Warren Factor
- Local market expertise
- Understanding Miami-Dade County pricing trends, neighborhood dynamics, and lending practices enables accurate guidance and strong offers.
- Personalized loan solutions
- Each conventional loan is tailored to the borrower's goals, timeline, and financial profile.
- Access to competitive rates
- By working with multiple lenders, borrowers gain access to competitive pricing and flexible programs.
- Clear, transparent communication
- Mortgage decisions are complex. Every step — from pre-approval to closing — is explained clearly and professionally.
- Fast, reliable pre-approvals
- Quick and accurate pre-approvals help buyers act confidently in a competitive housing market.
Get started with conventional loans
Conventional loans offer flexibility, competitive rates, and long-term value for homebuyers and homeowners alike. Whether you're purchasing your first home, upgrading, investing, or refinancing, a conventional loan can be a powerful financing tool.
With expert guidance from Warren Factor, borrowers can navigate the conventional loan process smoothly and make informed decisions that support long-term financial success.
Educational guidance only. Loan terms, eligibility, and pricing are subject to lender underwriting, program guidelines, and approval.
Ready to explore a Conventional loan?
One quick call with Warren and you'll know exactly what you qualify for — no obligation, no call center.