Conventional Home Loans in Tampa and Across Florida
A conventional home loan, also known as a conventional mortgage, is one of the most popular financing options for homebuyers in Tampa and throughout Florida State. Conventional loans are mortgage loans offered by non-government-sponsored lenders.
Conventional loans are subject to a conforming loan limit, which is the maximum amount that can be borrowed and is set by the Federal Housing Finance Agency (FHFA).
At The Associates Home Loan of Florida, Inc., we offer competitive rates and personalized service to help you achieve your homeownership goals. Whether you’re purchasing your first home, a vacation property, or an investment property, a conventional loan could be the perfect fit.
Why May a Conventional Home Loan be Right For You?
If you’ve got a great credit score, conventional loans provide numerous benefits for borrowers in Tampa and throughout Florida.
Lower Interest Rates
Borrowers with strong credit can secure lower rates compared to government-backed loans.
Flexible Terms
Options for fixed or adjustable-rate mortgages with various term lengths.
No Private Mortgage Insurance (PMI)
Avoid private mortgage insurance (PMI) by putting down at least 20%.
Wide Availability
Conventional loans are widely offered for various property types.
Versatility
Perfect for primary residences, second homes, or investment properties!
Down Payment Options
Variety of down payment options, including low down payment loans that require as little as 3% down, depending on the situation.
Eligibility Requirements for Conventional Loans in Florida
How to Qualify for a Conventional Mortgage
In general, most borrowers with solid credit and a down payment of at least 3% will satisfy conventional loan qualification requirements.
However, since traditional loans aren’t insured or guaranteed by the government, eligibility requirements are usually tougher to meet than the requirements for government-backed mortgages (i.e., Federal Housing Administration or FHA loans, VA loans, or USDA loans). Conventional loans typically require a higher credit score and a standard down payment.
To qualify for a conventional loan with Associates Home Loan, you must meet the following requirements:
- Credit Score: A minimum credit score of 620 is typically required.
- Debt-to-Income (DTI) Ratio: A DTI ratio of 43% or less is preferred, but exceptions may apply.
- Down Payment: At least 3% for first-time homebuyers and 20% to avoid PMI.
- Income and Employment: Proof of stable income and employment history.
- Property Requirements: The property must meet appraisal and condition standards.
What Types of Conventional Loans Can You Get?
There are several conventional loan options available to borrowers in Tampa, FL. These loan types include:
- Fixed Rate Mortgage Loan
- Adjustable Rate Loans (ARMs)
- Combination (Hybrid) Loans
- Balloon Mortgages and Pledge Asset Loans
- Reversible Mortgage
Additionally, conventional loans can be used for various loan programs, such as the bank statement loan program, which is designed for self-employed borrowers who may not have traditional income documentation.
Fixed Rate Mortgage Loan
One popular option is the fixed-rate mortgage, which offers predictable monthly mortgage payments and a fixed interest rate for the life of the loan. This stability can particularly appeal to those who prefer consistent payments and want to avoid the risk of fluctuating interest rates.
Adjustable Rate Mortgages
Another option is the adjustable-rate mortgage (ARM), which allows borrowers to take advantage of lower initial interest rates. However, it’s important to note that the interest rate can change over time, potentially increasing monthly payments. For those who are comfortable with some level of risk or perhaps only intend to hold a property for a short period of time and want to capitalize on ROI with a lower payment, ARMs can be a cost-effective choice.
Private Mortgage Insurance (PMI)
Private mortgage insurance (PMI) is required for conventional loans with a down payment of less than 20%. PMI protects the lender in case the borrower defaults on the loan. The cost of PMI varies depending on factors such as the loan amount, credit score, and down payment size. PMI can be paid monthly or annually, adding to the overall cost of the loan.
However, one advantage of PMI is that it can be removed once the borrower has paid down the loan to 80% of the original purchase price. This can result in significant savings over time. It’s important to note that PMI is different from mortgage insurance premiums (MIPs), which are required for FHA loans and cannot be removed in the same way.
Work With Tampa’s Most Trusted Conventional Loan Lender
Get Started With Associates Home Loan Today!
We would love to help you navigate the conventional loan application process with confidence. Whether you’re purchasing a home or refinancing anywhere in Florida, we’re committed to helping you find the best loan solution.
At Associates Home Loan, we specialize in offering tailored conventional loan solutions for all kinds of borrowers with many types of properties. Here’s what makes us stand out:
- Competitive Rates: Enjoy some of the best rates available in Tampa and across Florida.
- Local Expertise: We understand the unique needs of Florida’s real estate market.
- Streamlined Process: Our application process is fast and straightforward.
- Dedicated Support: Our team is here to guide you every step of the way.
If you’re ready to explore your options for a conventional home loan in Tampa or anywhere in Florida, we’re here to help. At Associates Home Loan, we offer personalized solutions, competitive rates, and expert guidance to make your home financing experience seamless.
Apply today, and one of our loan experts will reach out to you. Let us help you secure the financing you need to achieve your real estate goals.
Recently Closed Loans in Florida
| Credit Score | LTV | Loan Amount |
|---|---|---|
| 572 | 55% | $115,000 |
| Credit Score | LTV | Loan Amount |
|---|---|---|
| 452 | 57% | $335,000 |
| 495 | 17% | $30,000 |
| 522 | 38% | $85,000 |
| None | 36% | $145,000 |
| Credit Score | LTV | Loan Amount |
|---|---|---|
| 517 | 20% | $30,000 |
| 626 | 12% | $40,000 |
| Credit Score | LTV | Loan Amount |
|---|---|---|
| 591 | 53% | $285,000 |
| 727 | 60% | $575,000 |
| Credit Score | LTV | Loan Amount |
|---|---|---|
| 645 | 42% | $1,750,000 |
FAQs About Conventional Loans
Conventional home loans, or conventional mortgages, are mortgages not backed by the government, often requiring a higher credit score but offering competitive rates and flexible terms.
Eligibility includes a minimum credit score of 620, a manageable DTI ratio, and a down payment starting at 3%. You must also provide proof of income and meet property appraisal standards.
Yes, conventional loans are versatile and can be used for primary residences, second homes, and investment properties.
The Associates Home Loan of Florida, Inc. has local expertise, positive reviews, and competitive rates. Associates Home Loan offers tailored solutions to meet your needs.
Conventional loans offer lower interest rates for qualified borrowers, no PMI with 20% down, and greater flexibility in property types. VA loans, for example, which are available to veterans and active military members, offer benefits such as no down payment and no private mortgage insurance but come with different requirements. Associate Home Loan can help you decide on your options when you apply!
