Loan Programs
Conventional Loans
Conventional loans are the most common mortgage program in the United States. They follow guidelines set by Fannie Mae and Freddie Mac, and eligibility depends on automated underwriting approval, borrower qualifications, occupancy, property type, reserves, and lender guidelines.
Unlike government-backed loans (FHA, VA, USDA), conventional loans are not insured or guaranteed by a federal agency. They offer competitive interest rates for borrowers who meet the qualification requirements.
For Florida Keys buyers, the standard conforming loan limit is $832,750 for a one-unit property in most areas for 2026. Loan limits vary based on units and high-cost area designation. Properties above this threshold require jumbo loan financing. Many condos and properties in the Lower Keys may fall within conventional limits.
Down Payment
Down payment requirements vary. Some programs may allow as little as 3 percent for qualified first-time buyers. Putting 20 percent or more down may eliminate the need for private mortgage insurance. Your actual requirement depends on underwriting approval, credit profile, and the specific loan program. Eligibility depends on automated underwriting findings, credit profile, occupancy, property type, reserves, mortgage insurance structure, loan amount, and lender guidelines.
Credit Score
Eligibility depends on automated underwriting approval, borrower qualifications, and lender guidelines. Borrowers with higher credit scores typically qualify for better rates, but credit score alone does not determine approval. Eligibility depends on automated underwriting findings, credit profile, occupancy, property type, reserves, mortgage insurance structure, loan amount, and lender guidelines.
Debt-to-Income Ratio
DTI guidelines vary by program and underwriting findings. The maximum allowed ratio depends on the borrower's complete financial profile, including credit score, reserves, and compensating factors. Eligibility depends on automated underwriting findings, credit profile, occupancy, property type, reserves, mortgage insurance structure, loan amount, and lender guidelines.
Private Mortgage Insurance (PMI)
When the down payment is less than 20 percent, private mortgage insurance is generally required. PMI costs vary based on credit score, down payment, and loan program. PMI may be eligible for cancellation once the borrower reaches sufficient equity in the property, subject to lender guidelines and investor requirements. Eligibility depends on automated underwriting findings, credit profile, occupancy, property type, reserves, mortgage insurance structure, loan amount, and lender guidelines.
Keys Considerations
The conforming loan limit for a one-unit property is $832,750 for a one-unit property in most areas for 2026. Loan limits vary based on units and high-cost area designation. Properties above this limit require jumbo financing. Conventional loans for condos require the project to meet warrantability requirements. Second homes and investment properties have different down payment and rate guidelines than primary residences.