Purchase loan
Put down 3%. Drop the PMI later.
A conventional loan is not backed by the government, which gives it room to flex. For buyers with solid credit, it is often the most cost-effective path, whether the home is a residence, a second home or a rental.
- Down payment from
- 3%
- Credit score from
- 620+
- Mortgage insurance
- Removable PMI
- Property use
- Primary, second, rental
How a conventional loan works
Conventional loans follow guidelines set by Fannie Mae and Freddie Mac. They are not insured by FHA or guaranteed by VA. Loans up to the conforming limit fall into this category. Above that limit, you are in jumbo territory.
Pricing rewards strong files. A higher credit score and a larger down payment generally mean better pricing and lower mortgage insurance costs.
Down payment and PMI
Qualifying first-time buyers may put as little as 3% down on a primary residence. Many other buyers start at 5%. Second homes generally need at least 10% down, and investment properties more.
Put less than 20% down and you will pay private mortgage insurance (PMI). Unlike FHA mortgage insurance, PMI is not built to last:
- You can generally request cancellation once your balance reaches 80% of the home's original value.
- It generally ends automatically at 78%, as long as your payments are current.
- If your home gains value, you may be able to remove it sooner with a new appraisal and lender approval.
What lenders look at
- Credit score, generally 620 or higher, with better pricing at higher tiers.
- Debt-to-income ratio, your monthly debts compared with your gross monthly income.
- Reserves, the savings you have left after closing.
- The property, including the condo project review, which matters a lot in Miami.
This is where working with a broker pays off. We price your file across multiple lenders instead of one. In a 30-minute consultation we learn what matters most to you, whether that is the lowest payment, the least cash to close or the fastest payoff. Then we spend two to three hours building options around it.
Fixed or adjustable
Most buyers choose a 30-year or 15-year fixed rate. Adjustable-rate mortgages (ARMs) start with a fixed period, commonly 5, 7 or 10 years, and then adjust. An ARM can make sense if you expect to sell or refinance before the fixed period ends. It carries more risk if you do not.
We show you both structures in real numbers so you can compare the payment today against the cost over time. Once you choose, you can lock for up to 120 days, and we keep monitoring the market while your loan is in process.
Run your own scenarios in our mortgage calculator, or request a quote and we will run them with you.
Questions we hear
What is the minimum credit score for a conventional loan?
Most conventional programs generally require a score of 620 or higher. Higher scores typically get better pricing and lower PMI costs. Exact requirements depend on the lender and your overall file.
Can I really put only 3% down?
Yes, if you qualify. Programs with 3% down are generally available to first-time buyers and to some buyers under income limits. The home must be your primary residence.
When can I remove PMI?
You can generally ask to cancel PMI once your loan balance reaches 80% of the original value, and it generally ends automatically at 78% if your payments are current. Some lenders allow earlier removal based on a new appraisal, subject to seasoning and payment-history rules.
Can I use a conventional loan for a rental property?
Yes. Conventional loans can finance investment properties, typically with 15% to 25% down depending on the number of units, plus stricter reserve requirements. Rental income may help you qualify.
Can I use gift funds for my down payment?
Generally yes for a primary residence or second home, from an acceptable donor such as a family member, with a signed gift letter and proof of the transfer. Gift funds are generally not allowed for investment properties.
Related programs
First-Time Home Buyer
A guided path to your first Miami home, with low-down-payment options and a real pre-approval.
FHA Loan
Government-insured financing with 3.5% down and flexible credit guidelines for primary homes.
VA Loan
$0 down and no monthly PMI for eligible veterans, service members and surviving spouses.
Thirty minutes. Your goals. Real options.
Start with a goal consultation. No credit pull, no obligation. We come back with the strongest structures on the market for your situation.