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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CONVENTIONAL  LOANS VS. FHA LOANS
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1st Florida Lending Corp., a registered Mortgage Lender Orlando servicing all 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) 401-9955 We are approved lenders for all Government Loans and registered with the Florida Office of Financial Regulation - # MLD106 When Banks Say No !  We Say YES !  ®  is a registered trademark owned by 1st Florida Lending Corp.
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