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Conventional Home Loans in Florida

If you’re a real estate guru, you’re probably familiar with conventional loans. After all, conventional loans are the most popular type of mortgage. Unlike USDA, FHA, or VA1 loans, these financing instruments aren’t backed by the federal government. Rather, these Florida loans are offered by private lenders like banks and credit unions.

Do you want to get qualified for a conventional home loan in Florida? If so, don’t settle for a subpar mortgage lending process.

At Dash Home Loans, we’ve reimagined the home financing process by firing middlemen and hiring the most diligent, knowledgeable employees we could find.

These employees (we call them Mortgage Coaches) are here to help you navigate the choppy waters of home financing.

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Contents 

What Is a Florida Conventional Home Loan?

Simply put, a conventional loan is a mortgage that’s not backed by the federal government. 

Whereas a USDA loan in Florida is guaranteed by the U.S. Department of Agriculture, a conventional loan is offered by a bank, credit union, or mortgage lender like Dash Home Loans. 

What does this mean?

Well, when a government agency guarantees a loan, they’re essentially saying that they’ll front the money if the borrower (i.e., you) defaults. This provides lenders with immense peace of mind, allowing them to offer mortgages to families who might not otherwise get approved. 

Comparatively, conventional home loans aren’t insured by a government agency. If you default, it’s the private lender’s to-do, not the federal government’s. Because of this, there’s more risk associated with your mortgage. This risk is reflected in higher interest rates and more stringent application standards.

Conventional Loan Interest Rates

Florida conventional loans interest rates come in two flavors: fixed and adjustable. 

With a fixed-rate mortgage, the interest rate stays the same over the life of the loan.

Comparatively, the APR2 on an adjustable-rate mortgage ebbs and flows based on market conditions. 

No matter the type of Florida conventional loan you choose (i.e., fixed or adjustable), you can expect higher rates relative to government-backed mortgages.

However, the best way to secure a competitive APR is to work with a trustworthy mortgage lender like Dash Home Loans. At Dash, we’ll keep fighting until we secure an unbeatable rate.

Florida Conventional Loan Requirements 

Florida conventional loans are harder to qualify for than government-backed loans.

Though requirements vary from lender to lender, you generally must meet these criteria:

  • A credit score of at least 620. Credit score requirements will vary depending on your lender, with some requiring a minimum score of 680. At Dash, we offer conventional loans to borrowers with a 620 or higher.  
  • A debt-to-income ratio less than 36%. To calculate your debt-to-income ratio, divide your monthly debt payments by your gross income. 
  • No major credit report issues, like a foreclosure or bankruptcy. 
  • A minimum down payment of 20%. The standard down payment for a conventional loan is 20%. However, you can still get approved if you put down less; you’ll just need to purchase private mortgage insurance.

Not sure if you’ll qualify for a conventional loan in Florida? Reach out and we’ll connect you with a friendly Mortgage Coach. 

Benefits & Disadvantages of a Conventional Loan

We won’t mince words: Getting approved for a conventional loan in Florida can be tough, especially if you have less-than-stellar credit and limited cash reserves.

Even if you do get approved, you can expect a higher interest rate than if you secured an FHA or VA loan in Florida. 

But we promise it’s not all bad.

For starters, Florida conventional loans have higher lending limits, so you can buy a larger house to accommodate your kiddos. Plus, these mortgages only require PMI if you put less than 20% down.

FHA or Conventional Loan? Which Is Better?

Whether you’re new to the real estate world or a seasoned champ, you may be debating the merits of an FHA loan vs. a conventional loan.

At Dash Home Loans, our Mortgage Coaches help homebuyers sort through this dilemma each day.

Our advice? Neither is better or worse – it all depends on your finances. 

For instance, if you have a heap of credit card debt that’s tanking your FICO score, a Florida FHA loan could be better.

However, if you’re flaunting a 750 credit score and have the cash reserves to put 20% down, a conventional home loan could be the right choice.

A friendly Dash expert
Still unsure which is best for you? Don’t be a stranger – contact us to speak with a Mortgage Coach.

Our advice? Neither is better or worse – it all depends on your finances. 

Conventional Loan Limits

Your lending limit depends on your credit history, gross income, and other factors.

However, private lenders are also subject to standards set by the Federal Housing Finance Agency. The conforming loan limit for 2023 is $726,200. In some high-dollar real estate areas, borrowers can get approved for loans up to $1,089,300. 

Types of Conventional Loans

Florida conventional loans are like donuts – they come with lots of different tantalizing fillings and toppings. Each type of conventional home loan is cooked up with different borrowers in mind.

Not sure which suits your tastes? Take a look at the conventional loans we offer, then get in touch to contact a Mortgage Coach. 

Your Mortgage Coach can answer any questions you may have about conventional loans in Florida. They can also provide step-by-step guidance, working hard to ensure that your mortgage financing experience is sweet. (Just like a jelly-filled donut).

  • Conforming Conventional Loan: Complies with standards set by the Federal Housing Finance Agency.
  • Nonconforming Conventional Loan: Exceeds standards set by the Federal Housing Finance Agency.
  • Florida Jumbo Loan: A type of nonconforming conventional loan that surpasses spending limits.
  • Fixed-Rate Loan: Conventional loan option with fixed interest rates. 
  • Florida Adjustable-Rate Loan: Perfect for borrowers who want to start with low monthly payments.
  • Conventional Renovation Loan: Designed for homebuyers purchasing a rehab property.  
  • Subprime Loan: A loan available to borrowers with less-than-stellar credit.

How to Apply for a Conventional Loan

To apply for a Florida conventional loan, home buyers will need to gather documentation (think: pay stubs, W-2s, bank statements, etc.) and submit an application with their mortgage lender. Your lender will use this information to assess your creditworthiness, or the risk associated with lending you money.  

When you apply for a conventional loan with Dash, you’ll be amazed by how quick and easy mortgage pre-qualification3 is.

Our Mortgage Coaches in Florida will walk you through each step, deciphering legalese and keeping paperwork to a minimum.

Are you ready for a surprisingly pleasant experience?

Apply now

Timeline

Applying for a Florida conventional loan only takes a few minutes. However, some lenders can take more than three months just to process your information.

At Dash, we don’t think homebuyers should have to bite their nails for 90 days. That’s why we move fast. 

Documents & Paperwork to Submit

Another way to expedite the mortgage financing process is to gather all the necessary paperwork before applying. This documentation includes:

  • Proof of Income: To verify your income, you’ll need pay stubs, two years of federal tax returns, W-2 forms, alimony and child support documents, and more. 
  • Asset and Debt Verification: To assess your creditworthiness, lenders will request proof of monthly debt payments like car loans, credit cards, and existing mortgages. They will also need to see proof of your assets.
  • Identification: To confirm your identity, you’ll need to submit a copy of your driver’s license or State ID and confirm your Social Security number.

All of this information is needed to confirm your loan eligibility.   

Get Approved for a Conventional Loan With Dash Today

Still not sure if you’ll qualify for a Florida conventional loan? Want to learn more about what makes Dash not suck? Contact us to connect with one of our Mortgage Coaches. 

Ready to get started? Wonderful! Click “Apply now” below to start your application.

Apply now
Homeowners refinancing their home online

Get Approved for a Conventional Loan With Dash Today

Still not sure if you’ll qualify for a Florida conventional loan? Want to learn more about what makes Dash not suck? Contact us to connect with one of our Mortgage Coaches.

Ready to get started? Wonderful! Click “Apply now” below to start your application.

Apply now

Florida Conventional Loan FAQs

What’s the difference between an FHA loan and a conventional loan?

An FHA loan is a type of government-backed mortgage designed for borrowers with less-than-perfect credit. Comparatively, a conventional loan is a mortgage offered by private lenders like banks, credit unions, and mortgage lenders. 

What credit score do I need for a conventional loan?

Most private lenders require a credit score of 620 or higher. However, you’ll secure a better interest rate if you have a 740 or higher.  

How is PMI calculated on a conventional loan?

PMI is a percentage of your original loan amount. This percentage varies from lender to lender but is normally between 0.22% and 2.25%.

How long does it take to close on a house with a conventional loan?

Conventional loans typically close in 30 to 45 days.  

Legal information

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1 VA Disclaimer: VA home loan purchases, have options for 0% down payment, No private mortgage Insurance requirements, competitive interest rates, with specific qualification requirements. VA Interest rate reduction loans (IRRRL) are only for Veterans who currently have a VA loan, current loan rate restrictions apply, and limits to recoupment of costs and fees apply. VA Cash-out Refinances are available for Veterans with or without current VA loans. Policies and guidelines may vary and are subject to the individual borrower(s) qualification. Program and Lender overlays apply.

2 Lending Disclaimer: Mortgage rates are subject to change and are subject to borrower(s) qualification. APR rate(s) quoted is/are based upon a (loan amount), (loan term, including whether fixed or ARM) year. Lending Disclaimer: Mortgage rates are subject to change and are subject to borrower(s) qualification. APR rate(s) quoted is/are based upon a (loan amount), (loan term, including whether fixed or ARM) year.

3 Pre-Qualification Disclaimer: Pre-approvals are given to clients who have met qualifying approval criteria and specific loan requirements at the time of applications. Results may vary.

Dash Loan Closing Guarantee Disclaimer: Guarantee is based on loan closing; restrictions apply.

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Florida Office of Financial Regulation: MLD646.

For refinance advertisements that state a reduction on monthly payment, please note: the total finance charges may be higher over the life of the loan.