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Conventional Loans
A conventional loan is any type of home loan that isn’t insured or guaranteed through a government agency. Many conventional loans conform to government-set loan limits as well as income and credit score minimums
There are two main categories of conventional loans: Conforming loans and Non-conforming loans. Conforming loans have maximum loan amounts that are set by the government. Conventional loans typically cost less than FHA loans but can be more difficult to get.
The FHFA sets the limit for conforming loans every year. For 2025, the limit for a Single Family Home is $806.500 in most parts of the US. In areas with a higher cost of living, the limit goes up to a ceiling of $1,209,750. Non-Conforming (Jumbo) limits vary depending on county as well.
Typical conventional loan requirements include:
- Minimum credit score of 620
- Minimum down payment of 3-5%
- Debt-to-income ratio below 43%
- Loan amount within local conforming loan limits
- Proof of stable employment and income
- Clean credit history (no recent bankruptcy or foreclosure)The FHFA sets the limit for conforming loans every year. For 2025, the limit is $806,500 in most parts of the US. In areas with a higher cost of living, the limit goes up to a ceiling of $1,209,750. Non-Conforming (Jumbo) limits vary depending on county as well.
FHA LOANS
An FHA loan is a mortgage insured by the Federal Housing Administration (FHA).
It’s designed to help first-time homebuyers and those with lower credit scores or smaller down payments.
Borrowers can qualify with credit scores as low as 500 and down payments as low as 3.5%.
The interest rates are competitive, and there’s no prepayment penalty. However, borrowers must pay mortgage insurance premiums, which protect the lender if a borrower defaults.
The loan amounts are also limited, based on the cost of living in the area where the borrower is buying.In Florida, for 2025, the maximum loan limit for a Single-Family home is $654,350 and for a Quad-plex is $1,258,400.
