Conventional Investment Property Loans in Florida
Standard Fannie Mae / Freddie Mac investment-property mortgages. Cheapest cost of capital but capped at 10 financed properties and gated by personal income.
What Conventional loans are
Conforming residential mortgage for non-owner-occupied 1-4 unit properties, sold to Fannie Mae or Freddie Mac. Standard 30-year amortization. The lowest-cost real-estate financing available to most investors.
Underwriting and qualifying
Lender requires: 680+ FICO, 20-25% down, DTI typically under 45% including the new mortgage, 2 years of W-2 + tax returns, 6 months of reserves per property. Closing in 30-45 days.
Florida-specific considerations
Florida: no state income tax. No state income tax improves an investor's after-tax return on rental cash flow, indirectly raising the value of conventional rental investing here.
What financing looks like at Florida price points
West Palm Beach's $400k typical home value at 25% down requires $100k cash + ~$5k closing for a conventional investment-property loan. At 7% interest, monthly P&I runs about $2k — model this against $2,327/mo median rent to project cash flow.
Florida lender ecosystem
No state income tax improves after-tax conventional rental returns. Insurance premiums have risen 30-60% post-2022 in many Florida metros and should be modeled aggressively.
Best fit
New investors building their first 1-10 rental properties with verifiable W-2 income and clean credit.
When to use something else
Anyone past 10 financed properties. Self-employed borrowers with low taxable income. Time-sensitive acquisitions (30-45 day close).
Top Florida metros for Conventional-financed investing.
Common questions.
What's a typical Conventional rate in Florida?
6-7.5% is the broad national range. Florida-specific pricing reflects the local lender ecosystem and judicial, ~6-12 months — longer judicial foreclosure timelines extend lender exposure and tend to push pricing toward the upper end of the national range. Always collect 5+ term sheets before committing.
Which Florida metros are best for Conventional-financed investing?
Based on our investor score across Florida markets we cover: West Palm Beach, Fort Myers, Fort Lauderdale, Miami, Naples top the list. Top pick West Palm Beach runs $400k median with 6.99% gross rent yield — strong yield supports DSCR + rental holds.
How does Florida's wholesale-assignment law affect Conventional deals?
Wholesale assignment is permitted in Florida. This indirectly affects conventional availability because wholesaler-sourced deals — common acquisition channels for hard-money and DSCR borrowers — flow through the local assignment-law framework. Investors closing wholesale-sourced properties should verify their title company handles assignment closings in compliance with Florida's rules.
Financing options in Florida.
The Weekly Deal Memo
One market memo, one off-market playbook, one tool review. Every Friday. Free.
No spam. Unsubscribe anytime.