Conventional loans reward strong credit with competitive terms and the ability to eliminate mortgage insurance entirely once you build enough equity — unlike FHA's often-permanent MIP.
Conventional loans require Private Mortgage Insurance (PMI) below 20% down, but — unlike FHA's often-permanent MIP — PMI can be removed once the loan reaches 80% of original value (by request) or is automatically terminated at 78% under federal law, subject to payment history. For buyers who expect to build equity or pay down principal, that can mean real long-term savings.
Conforming loan limits are set annually and vary by county; most Florida counties follow the baseline limit while some high-cost areas carry higher limits.
Conventional guidelines accommodate bonus, overtime, and commission income (with a two-year history), rental income from a departing residence or accessory dwelling unit, and self-employment income via two years of tax returns — worth reviewing directly since calculation methods vary by scenario.
Typically a minimum around 620, though the best pricing generally goes to borrowers with scores of 740+.
Once your loan balance reaches 80% of the original home value (by request), or automatically at 78% under federal law, subject to payment history.
Limits are set annually and vary by county — most Florida counties follow the baseline limit, with some high-cost areas higher. Confirm the current figure for your county directly.
Yes, though down payment and reserve requirements are typically higher than for a primary residence.
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