Conventional loans are otherwise known as "conforming" and offer high loan limits vs FHA loans There are also established guidelines for borrower credit scores, income requirements and minimum down payments. For example, most conventional loans require somewhere between 3 percent and 20 percent down. Conventional loans can be conforming or nonconforming. Loans above the lending limits set by Fannie Mae and Freddie Mac are called nonconforming or jumbo loans. Conventional loans either have fixed or adjustable interest rates. Fixed interest rate loans have terms of 15 or 30 years. Shorter-term loans usually results in a lower interest rate. Adjustable-rate mortgages, or ARMs, fluctuate in relation to the rate of a standard financial index, such as the LIBOR. Monthly payments can go up or down accordingly. Conventional Loans may be Cheaper If you plan on using a 20% down payment to avoid PMI. You may have no choice but to get conventional financing. FHA loans will require mortgage insurance regardless how much your down payment is. If you have a 20% down and are seeking a 80% LTV loan-to-value mortgage. Then a conventional mortgage will be cheaper than FHA. Some Conventional Mortgage Benefits Higher maximum loan limits No up-front private mortgage insurance (PMI). Flexible guidelines on the homes condition PMI payments cancel when the LTV reaches 78% NO PMI with 80% loan-to-value ratio Mortgage insurance is less expensive (0.51% vs 0.85% with FHA) 3% down payment for conventional 97% LTV loan FHA Loan Disadvantages Lower maximum loan limits MIP required for the life of the loan if a borrower puts down less than 10% Mortgage insurance required even if putting 20% down Can only purchase condominiums that are FHA approved. Mortgage insurance monthly cost is higher Comparing Credit Scores FHA vs Conventional FHA Loan: 500-579 credit score (10% down payment) FHA Loan: 580+ credit score (3.5% down payment) Conventional Loan: 620+ credit score (5% – 20% down payment) Conventional 97: 640+ credit score (3% down payment) ​Ask us about our 1% down program
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* Disclaimer: All Loan programs, rates and terms can change without notice and are subject to credit and underwriting approval. Loan charts highlight min/max constraints, assumptions & random scenarios only. We will always work hard to approve your loan but there are no guarantees of any kind expressed or implied that any loan we be approved. Licensed in Florida Only © 2007 - 20211st Florida Lending Corp. - All rights reserved I Privacy Policy I Terms of Use I
Carlos Matos I Florida Direct Lenders

Florida’s Top Rated DIRECT Lender I 48 Programs

1st Florida Lending


800-655-1345 I CALL us 407-300-2558

1st Florida Lending Corp., a registered Mortgage Lender Orlando servicing only the State of Florida, offering over 48 loans programs

including Conventional Loans, Non-Conforming Loans, FHA Loans, VA Loans, USDA Loan, Self-Employed Loans, Bank Statement

Loans, No-Doc Loans, Reverse Mortgage Loans, ITIN Loans, Rental Investment Loans, to name a few and specializing in Bank

Statement Loans or “stated loans” requiring no Tax Return verification and much more. * No broker or lender fees are for FHA,VA, USDA

and Conventional loan types Main Office: 2151 Consulate Dr. * Suite 8 * Orlando, FL., 32837 * Telephone (800) 655-1345 * (407)

300-2558 * Fax (877) 401-9955We are approved lenders for all Government Loans and registered with the Florida Office of Financial

Regulation - # MLD106When Banks Say No ! We Say YES ! ® is a registered trademark owned by 1st Florida Lending Corp.