The everyday mortgage, shopped across 40+ lenders instead of one.
A conventional loan is the mortgage most Cape Coral and Fort Myers buyers end up with — and the one where lender competition matters most, because pricing varies more than people think. We shop it, price it against FHA, and do the Lee County tax and insurance math properly so the payment you're approved for is the one you'll live with.
Not government-insured. Priced on your file, not a program.
"Conventional" means a mortgage that isn't insured by the FHA, VA, or USDA. Most conventional loans are "conforming": they follow Fannie Mae and Freddie Mac's rules so the lender can sell them on, which is what keeps the rate competitive. Above the conforming loan limit for the county you're in jumbo territory.
Because there's no government guarantee, the lender prices your file on its own merits — credit score, down payment, debt ratio, property type. That cuts both ways. A strong file gets rewarded with better pricing and cheaper, cancellable mortgage insurance than FHA offers. A thinner file gets charged for it, and past a point FHA becomes the better deal. Knowing where that line falls for you is most of our job.
We're a broker. One application goes out to the wholesale lenders whose pricing and rules fit your file, and they compete. On a conventional loan that competition shows up directly in your rate and closing costs.
Conventional at a glance
- Minimum down payment
- 3% on a primary residence through first-time-buyer and income-based programs; 5% for most other primary purchases. Second homes and investment properties require more.
- Credit
- Agency minimum 620. Pricing and PMI cost improve in tiers above that.
- Mortgage insurance
- Private mortgage insurance (PMI) only when you put less than 20% down. Cancellable at 80% of original value; drops automatically at 78%.
- Loan limits
- Conforming limits are set each year per county. Lee County follows the baseline national limit — we'll confirm the current figure for the home you're looking at.
- Property
- Primary residences, second homes, and 1–4 unit investment properties. Condos need a project review — see our condo page.
- Seller help
- Seller contributions to closing costs are capped by down payment: 3% of the price under 10% down, rising to 6% and then 9% with larger down payments.
Rules summarized from Fannie Mae / Freddie Mac guidelines and subject to change; lender overlays vary. Not a commitment to lend.
The three Lee County numbers a national lender gets wrong.
Your rate is only part of the payment. In Cape Coral and Fort Myers, taxes and insurance can be a third of it, and out-of-state underwriters routinely estimate both badly.
Your property taxes reset at closing. The seller's bill is a decoy.
Florida's homestead exemption and Save Our Homes cap keep a long-time owner's assessed value from rising more than a few percent a year. The moment the home sells, the assessment resets to market value — so a seller paying a modest bill after fifteen years can hand you one that's dramatically higher.
We estimate your future bill from the Lee County Property Appraiser's numbers, not the listing sheet, and file your homestead application reminder for the following year.
Flood, wind, and roof age decide your insurance — and your approval.
Canal and gulf-access homes across Cape Coral commonly sit in FEMA zone AE, where flood insurance is required by federal law. Wind coverage is its own line. And Florida carriers increasingly decline roofs past a certain age, which can turn a great deal into an uninsurable one.
All three premiums count in your debt-to-income ratio. We want the quotes before your offer, not in week three. Start with the flood guide.
Wells, septic, seawalls, and utility assessments.
Northwest Cape Coral still has well-and-septic homes, which conventional financing handles fine but the appraisal treats differently. City utility expansion assessments attach to the tax bill and count in your payment. On canal lots, a seawall's condition can show up in the appraisal.
None of it is a problem. All of it is a surprise to a lender in another state. We ask the questions up front.
Good credit, some savings, and anyone buying a second home or rental.
Conventional is usually the winner for buyers with a credit score in the high 600s or better and at least 5% down — the PMI is cheaper than FHA's and it goes away. It's the only mainstream option for a snowbird second home in Cape Coral or a long-term rental in Fort Myers. And it's what most FHA borrowers eventually refinance into to drop mortgage insurance.
Below 620, or with a debt ratio conventional won't stretch to, FHA usually wins. We show you both.
- Ten-minute pre-qualification.No credit pull to start. We price conventional against FHA with real Lee County tax and insurance estimates.
- Documents and a real approval.Two years of income history, recent pay stubs, two months of bank statements, ID. Self-employed? Your list is different.
- Property check before you offer.Flood zone, roof age, condo project status, utility assessments, whether the seller's tax bill is homesteaded.
- Lender shop and lock.Your file goes to the lenders whose pricing fits it. You pick; we lock in writing. Float-down locks available from some lenders.
- Appraisal, underwriting, closing.Three to four weeks on a clean purchase; some files qualify for an appraisal waiver, which shortens it.
What Cape Coral and Fort Myers buyers ask about conventional loans.
If yours isn't here, text (239) 790-PURE and we'll add it.
How much do I need down for a conventional loan in Florida?
When does PMI go away on a conventional loan?
What credit score do I need for a conventional mortgage?
Why will my property taxes be higher than the seller's?
Can I use a conventional loan for a second home or a rental in Cape Coral?
Is a conventional loan better than FHA?
Ten minutes. No credit pull. Conventional and FHA, side by side.
If you're still shopping, get the quote anyway. It's the cheapest second opinion in real estate.