Why it matters
This is the plain-vanilla loan: no government guarantee, run by Fannie Mae and Freddie Mac rules. Here are its real minimums — the down payment, the credit, the property — and the exact line where it stops being conventional and becomes jumbo.
What it is: the loan the government does not guarantee
A conventional loan is one a lender makes without any government agency guaranteeing it (that is what separates it from FHA, VA and USDA). Most are sold afterward to Fannie Mae or Freddie Mac, the two federally backed companies that buy loans: that is why their rules — published in Fannie's Selling Guide — are the ones that rule in practice, even when your lender adds its own on top.
- Conforming: your loan fits your county's amount limit and the Fannie or Freddie rules. That is the normal conventional loan.
- Non-conforming / jumbo: the amount goes over the county limit. Fannie and Freddie cannot buy it, so the lender keeps it or sells it to private investors, under tougher rules.
- No government premium: there is no agency upfront charge like FHA's or USDA's. What there can be, with a small down payment, is private mortgage insurance (PMI).
The down payment: the real minimum is 3%, with conditions
Fannie Mae's matrix allows financing up to 97% on the purchase of a one-unit primary home: that is where the 3% down payment comes from. But that 3% is not the general door: you enter through one of these paths.
| The path | The down payment | The condition |
|---|---|---|
| Conventional 97 | 3% | At least one buyer must be a first-time buyer (no home owned in the last 3 years) |
| HomeReady (Fannie) / Home Possible (Freddie) | 3% | Your income cannot exceed the cap tied to your area's median (looked up by address); HomeReady allows gifts and grants to complete the down payment |
| Standard conventional | 5% in practice | Without the first-time condition or the income cap of the 3% paths |
| No PMI | 20% | At 20% there is no PMI: that is the line the law uses for the insurance |
Second homes and investment properties are also financed conventionally, with more money down (the matrix lowers financing to 90% and 85% respectively, and less on cash-out refinances) and more reserves. And part of the down payment can come from a family gift, with its letter and its rules.
With your numbers, not the example. With five questions and no credit check: how many properties for sale are within your reach and what you'd pay a month.
I want to see what I can buyCredit and the rest of what they look at
In its eligibility matrix, Fannie Mae publishes a 620 credit score floor for the fixed-rate loan — and the matrix itself raises it according to how much you finance when underwriting is manual: the more you finance, the more score and reserves it asks for. Each lender's automated system decides case by case, and almost every lender adds its own floor above Fannie's.
- Debts against income: under manual review, Fannie's matrix caps the ratio between your debts and your income at 45%. With automation and strong factors it can go past that; with high debts, the price you reach drops anyway (see why they approve you for less).
- Reserves: depending on your case, the lender may require that several house payments stay saved after closing — more for second homes and investment properties.
- The property gets reviewed too. It must be in livable condition and appraise at what you pay or more. And if it is a condo, the building goes through a project review: Fannie can lower what is financeable depending on the review type, and in Florida that weighs — the same topic FHA handles in its own guide.
The full map of the score is in the credit score you actually need.
The 2026 limit and the jumbo: the Miami-Dade and Broward line
The FHFA, the agency that regulates Fannie and Freddie, sets the conforming loan limit every year: the maximum loan amount they may buy. For 2026 (published November 25, 2025, effective January 1) the one-unit baseline is $832,750, and the FHFA's own county list puts Miami-Dade and Broward at that same baseline value — they are not "high-cost" counties. The only Florida county with a higher limit is Monroe (the Keys), at $990,150.
- The limit is on the loan, not the price. A $900,000 home with a solid down payment can stay inside; an $850,000 home with 3% down crosses to the other side.
- Over the limit, your loan is jumbo. There is no official table: it is market practice for lenders to ask for a bigger down payment (often 10–20%), a higher score (often from 700), documented reserves of several payments and full documentation; on very large amounts, sometimes two appraisals.
- The limit changes every year. The FHFA announces the next one every November. If you buy across the turn of the year, confirm which one applies to your closing.
Jumbo does not mean a worse loan: it means a loan outside the Fannie and Freddie mold. For large amounts with strong credit it can compete well; what it lacks is the conforming world's uniform rulebook.
The programs, for your case. Answer the basics — where you want to buy, the price, how many live in the home and your income — and see which Miami-Dade and Broward programs could fit you, with their amount and whether they are open today.
I want to see my programsAdvantages and disadvantages, no brochure
| In favor | Against | |
|---|---|---|
| The cost | No government upfront premium; PMI can be removed once you reach 20% equity | With less than 20% down you pay PMI meanwhile, at the rate the insurer sets from your credit |
| Who gets in | No income cap and no area gate; 620 at the published floor | Tougher than FHA with bruised credit: the 3% asks for a first-time buyer or income under the median cap |
| The property | Works for a primary home, a second home and an investment property | The condo goes through project review; investment and second homes ask for more down and more reserves |
| The amount | Up to $832,750 in our counties without leaving the mold | Over the limit it is jumbo, with each lender's rules and more paper |
The other programs are in FHA minimum requirements, the VA loan and the USDA loan; the insurance that rides with this one, in private mortgage insurance (PMI).
Sources
- Federal Housing Finance Agency (FHFA), conforming loan limit values for 2026 (announcement of November 25, 2025) and its county list: $832,750 for one unit in Miami-Dade and Broward; $990,150 in Monroe: fhfa.gov
- Fannie Mae, eligibility matrix of its Selling Guide (August 2026): 97% financing on a primary residence, the 620 floor, reserves and condo project reviews: fanniemae.com
- Fannie Mae, the official HomeReady page: down payments as low as 3%, flexible sources for the down payment and the income cap by area: fanniemae.com
We tell you which path is yours and what you need.
With your credit, your income and the price you are looking at, we will tell you whether you come in through the 3% path, the 5% path, or whether another program fits you better — and how much cash you need in total. Leave us your number and we will go over it with you.
This guide orients you, it does not advise you. The ranges are estimates, and final terms are set by the lender, the insurance company, or the homeowners or building association, based on your specific case.
Whenever you want to move ahead, we handle it with you.