Tim Lyons NMLS# 2182927
Self Employed Home Loan Expert
🏡 The Ultimate Guide to Conventional Loans in Florida (2025)
Created by Tim Lyons - Senior Mortgage Loan Originator, Certified FHA Mortgage Professional - Licensed in Florida & Ohio | NMLS# 2182927
🟩 Introduction: Why Conventional Loans Still Dominate in 2025
When it comes to buying a home in Florida — especially as a move-up buyer — conventional loans remain one of the most powerful and flexible tools available. Whether you're selling your current home and trading up, purchasing a second property, or simply exploring options beyond FHA or VA, this guide breaks it all down for you. I’m Tim Lyons, a Certified Mortgage Advisor based in Lakewood Ranch, and I built this guide to help you confidently navigate conventional loan options in today’s market.
💡What Is a Conventional Loan?
A conventional loan is a home loan that’s not insured or guaranteed by the federal government. These loans conform to standards set by Fannie Mae and Freddie Mac, which means lenders can offer competitive rates and flexible terms for well-qualified borrowers.
They’re ideal for:
Move-up buyers
Buyers with strong credit
Borrowers with at least 3%–5% down
Buyers who want to remove PMI once they reach 20% equity
✅ Why Florida Buyers Choose Conventional Loans
Here’s why conventional loans are a top choice in 2025:
Low Down Payment Options: As low as 3% down for qualified buyers
No Upfront Mortgage Insurance: Unlike FHA, there’s no upfront MIP
PMI Can Be Removed: Once you hit 20% equity, your private mortgage insurance can go away
No FHA Property Restrictions: More flexibility on condos, appraisals, and repairs
Stronger Loan Terms: Especially if you have higher credit or more down
🧠 Who Qualifies for a Conventional Loan?
To qualify, lenders typically look for:
➡️ Bonus: Gift funds and seller concessions are allowed.
📊 2025 Florida Conventional Loan Limits (by County)
Loan limits vary based on county and property type. For example:
📥 [Download Full 2025 Loan Limit Chart by County] (PDF coming soon)
💥 Loan-Level Price Adjustments (LLPAs): What to Know in 2025
LLPAs are fees built into your rate based on your risk profile — like credit score, down payment, and occupancy. These fees were revised in recent years to reduce penalties for lower-income or first-time buyers.
We’ll review your scenario together to structure your loan for the
best possible rate and lowest cost.
🏠 3% Down Options: Who Qualifies?
Conventional loans have multiple low down payment options:
HomeReady – for income-eligible borrowers
Home Possible – for first-time and moderate-income buyers
Standard 97% LTV – anyone can use this, no income cap
You don’t need to be a first-time buyer to qualify — but it helps.
⚖️ Conventional vs. FHA in Florida
📥 [Download Comparison Chart] (PDF coming soon)
🔁 Refinancing Into a Conventional Loan
You may want to refinance:
From FHA to conventional to remove MIP
To pull cash out from equity
To shorten your term or lock a better rate
Let’s evaluate whether it makes sense for your goals — especially in 2025’s rate environment.
❌ Common Conventional Loan Myths
You can combine FHA loans with programs like:
“You need 20% down”→ Nope. 3%–5% is enough for many borrowers.
“Conventional loans are harder to qualify for”→ They just have different criteria.
“You can’t use gift funds”→ You can — up to 100% of your down payment can be gifted.
🧮 How Much Home Can You Afford?
Let’s run a sample:
A borrower earning $95,000/year with minimal debt→ Could qualify for a conventional loan up to ~$425,000 with 5% down (varies by debt & location) Want to see your own numbers?
👉 Let’s run a free pre-approval.
📞 Ready to Explore Your Options?
I’m Tim Lyons — a Certified Mortgage Advisor and expert in helping Florida buyers understand their options, make smart moves, and save money.
Whether you’re moving up, refinancing, or buying again, this guide is your first step — and I’m here to walk you through the rest.
📥 [Download the Guide]
📧 [email protected] | 📞 216-496-2375
🤖 Frequently Asked Questions
Can I get a conventional loan with 5% down in Florida?
Yes — many buyers qualify with just 5% down, especially move-up buyers.
Does a conventional loan have PMI?
Yes, but it can be removed once you reach 20% equity.
Are conventional loans only for perfect credit?
No. Minimum credit is typically 620, and higher scores unlock better rates.
Can I use a conventional loan to buy a second home or investment property?
Yes — conventional loans are often used for second homes and non-owner-occupied properties.
What’s the difference between HomeReady and standard conventional loans?
HomeReady is a 3% down option with income caps and special pricing — ideal for first-time or moderate-income buyers.
✍️ Authored by Tim Lyons, NMLS# 2182927 Certified FHA Mortgage Professional. Serving Lakewood Ranch, Manatee County, and all of Florida
Want help figuring it all out? Let’s talk — no pressure, just real answers.
Contact Info
Pioneer Mortgage Funding, Inc.
3001 North Rocky Point Drive East Suite 238
Tampa, FL 33607
Pioneer Mortgage Funding Inc. NMLS# 1936558
is an Equal Housing Opportunity mortgage broker. Rates and terms vary depending on eligibility. Approval subject to review of information.
All loan approvals are conditional, not guaranteed, and subject to lender review of all information. A loan is conditionally approved when the lender has issued an approval in writing, but until all conditions are met, a loan cannot be funded. Specified rates may not be available for all borrowers. Rate subject to change with market conditions. Pioneer Mortgage Funding, Inc is an Equal Opportunity Mortgage Broker headquartered in Tampa, Florida. This licensee is performing acts for which a mortgage broker license is required. Pioneer Mortgage Funding, Inc is licensed by the Florida Office of Financial Regulation, NMLS# 1936558. Pioneer Mortgage Funding, Inc. is approved to originate Conventional, FHA, VA, and USDA loans, and has the ability to broker such loans to Conventional, FHA, VA, and USDA approved lenders. Pioneer Mortgage Funding, Inc. is not acting on behalf of or at the direction of HUD/FHA or the VA.