Types of Mortgages for Florida Buyers: Conventional, FHA, VA, Jumbo and Condo Loan Rules

The main mortgage types for Florida buyers are conventional, FHA, VA and jumbo loans. Each one has its own down payment, insurance cost and loan limit. In Palm Beach County and Port St. Lucie, two local issues also shape the choice: condo approval rules and home insurance. This guide compares the loans side by side, gives the 2026 limits for both counties, and explains where Florida deals tend to get stuck.

Key takeaways

• The 2026 conforming loan limit for a one-unit home is $832,750 in Palm Beach County and St. Lucie County. A larger loan is a jumbo loan.
• FHA limits for a one-unit home in 2026 are $667,000 in Palm Beach County and $603,750 in St. Lucie County, per HUD.
• VA borrowers with full entitlement have no VA loan limit. The first-use funding fee is 2.15% with less than 5% down.
• Fannie Mae's HomeReady loan allows as little as 3% down for buyers at or under 80% of area median income.
• A condo that fails Fannie Mae or FHA project rules can knock out several loan types at once, so check the building first.

Mortgage types for Florida buyers at a glance

Most buyers choose from four loan families. So it helps to see them together before you look at the details.

• Conventional: a loan that follows Fannie Mae or Freddie Mac rules. Down payments can start at 3% on some programs. Mortgage insurance applies when you put down less than 20%.
• FHA: a loan insured by the Federal Housing Administration. Down payments can be as low as 3.5%, and credit rules are looser than most conventional loans. Mortgage insurance is required on every FHA loan.
• VA: a loan backed by the Department of Veterans Affairs for eligible veterans, service members and some surviving spouses. It needs no down payment and no monthly mortgage insurance.
• Jumbo: a loan above the conforming limit. Lenders set their own rules, and they often ask for more cash and reserves.

Each type also comes as a fixed rate or an adjustable rate in most cases. According to the CFPB, 85% to 95% of buyers chose fixed rates from 2008 to 2022. That share is higher than the long-run norm of about 70% to 75%.

Conventional loans and the 2026 conforming limit

A conventional loan is the most common choice. In fact, the CFPB calls it the majority of loans. If your loan fits under the conforming limit, Fannie Mae or Freddie Mac can buy it from the lender. That usually means better pricing for you.

For 2026, the Federal Housing Finance Agency set the baseline limit for a one-unit home at $832,750. That was up $26,250 from 2025. Palm Beach County and St. Lucie County both use the baseline, according to HUD's limit lookup. Two-unit to four-unit homes have higher limits.

Low down payment conventional options

Many buyers think a conventional loan needs 20% down. It does not. For example, Fannie Mae's HomeReady loan allows a loan-to-value ratio up to 97%, so the down payment can be 3%. However, your income can be no more than 80% of the area median income for the home's location. The loan must also be a fixed rate on a one-unit home you live in.

If you put down less than 20%, you will pay private mortgage insurance. But this cost does not last forever. Under federal law, you can ask to cancel it when your balance is set to reach 80% of the home's original value. Also, the servicer must end it on its own at 78%, as long as you are current. Your lender can show you when that date falls on your loan.

FHA loans: the low down payment mortgage type for Florida buyers

FHA loans help buyers with smaller savings or thinner credit. The down payment can be as low as 3.5%. As a result, many first-time buyers in Greenacres, Lake Worth Beach and Port St. Lucie start here.

The trade-off is mortgage insurance, which the CFPB says is required on all FHA loans. FHA charges it both at closing and as part of the monthly payment. So ask your lender how long it will last on your loan. Then compare the total cost over the years you expect to keep the home, not just the first payment.

2026 FHA limits in our counties

FHA limits vary by county. HUD's lookup shows these one-unit limits for 2026:

• Palm Beach County: $667,000
• St. Lucie County: $603,750

The national floor is $541,287 and the high-cost ceiling is $1,249,125. So both of our counties sit above the floor. Still, an FHA buyer in Boca Raton or Jupiter can hit the cap quickly. For a closer look, read our post on FHA vs. conventional loans in South Florida.

VA loans: no limit with full entitlement

VA loans are often the best deal for buyers who qualify. There is no down payment and no monthly mortgage insurance. In addition, the VA says borrowers with full entitlement have no loan limit, as long as they can afford the loan and the appraisal supports the price.

Most VA buyers do pay a one-time funding fee. On a first-use purchase loan, the fee is 2.15% of the loan with less than 5% down. Then it drops to 1.5% with 5% down and 1.25% with 10% down. Some buyers do not pay it at all, such as veterans who receive VA disability compensation.

Lenders still set their own credit and income rules. So a VA buyer should get pre-approved early, just like anyone else.

Jumbo loans: the mortgage type Florida buyers need above the limit

Any loan above $832,750 on a one-unit home is a jumbo loan in our two counties. That matters more in Palm Beach County than you might think. In August 2026, the county's single-family median was $650,000, per Miami Realtors. Many homes in Boca Raton, Palm Beach Gardens and Jupiter sell well above that.

Jumbo rules vary from lender to lender. In general, though, expect a larger down payment, a higher credit score and more cash left in the bank after closing. Some buyers avoid a jumbo loan by putting down enough to stay under the limit. Others pair a first loan at the limit with a second loan. Ask your lender to price both ways.

Condo rules that limit mortgage types for Florida buyers

In Florida, the building can matter as much as the buyer. Fannie Mae, Freddie Mac and FHA each review condo projects, not just borrowers. If a building fails, some loan types are off the table.

A condo that meets Fannie Mae or Freddie Mac project rules is often called warrantable. A condo that fails them is non-warrantable. For example, Fannie Mae will not buy loans in projects that need critical repairs. It also limits commercial space to 35% of the project, and it caps how many units one owner can hold. In a building with 21 or more units, that cap is 20%.

FHA keeps its own list of approved condo projects. Some single units can also get approval one by one. VA has its own approval process too.

Why this hits South Florida condos hard

Many condo buildings along the coast are decades old. After the state's condo safety laws, many of them face milestone inspections, reserve studies and large repair bills. Those are exactly the issues that can make a project non-warrantable. As a result, a buyer may need a portfolio loan with a bigger down payment.

So ask early. Before you write an offer, have your lender check the project's status. Your agent can also request the association's budget, reserve study and recent minutes.

Insurance rules for every mortgage type Florida buyers use

Every lender will require homeowners insurance, including wind coverage. In Florida, that bill can change your budget more than a small rate difference. The state's average homeowners premium was $3,736 in September 2026, per Florida Realtors. Still, some insurers have cut rates this year.

Flood insurance is the other piece. FEMA says homes in high-risk flood areas with mortgages from government-backed lenders must carry flood insurance. You can check a property's flood zone on the FEMA Flood Map Service Center. Then get insurance quotes during your inspection period, before you are locked in.

Lenders also look at the roof and the age of major systems, because insurers do. An older roof can mean higher premiums or no coverage from some carriers. That, in turn, can delay a closing.

How to choose among mortgage types for Florida buyers

Start with three numbers: your savings, your credit score and the price range you want. Then match them to the loan rules above. Here is a simple way to sort it out.

1. If you are an eligible veteran or service member, price a VA loan first.
2. If your income is at or under 80% of the area median, ask about HomeReady and similar 3% down programs.
3. If your credit is still building, compare FHA and conventional on total cost, including mortgage insurance.
4. If the price puts your loan above $832,750, ask for jumbo quotes and a split-loan quote.
5. If you want a condo, check the building's approval status before you choose the loan.

Also, get pre-approved before you tour seriously. A strong letter helps your offer stand out, especially for single-family homes. In Port St. Lucie, for instance, St. Lucie County homes went under contract in a median of 54 days in August 2026. Our Port St. Lucie page covers that market in more detail.

Frequently asked questions

What are the main mortgage types for Florida buyers?

The main types are conventional, FHA, VA and jumbo loans. Most come with fixed or adjustable rates. Some buyers also use USDA loans or local down payment help, depending on income and location.

What is the 2026 conforming loan limit in Palm Beach County?

It is $832,750 for a one-unit home, which is the national baseline. St. Lucie County uses the same limit. Any larger loan is a jumbo loan.

What is the FHA loan limit in Palm Beach County for 2026?

HUD lists $667,000 for a one-unit home in Palm Beach County. In St. Lucie County, the one-unit limit is $603,750.

Can I use an FHA or VA loan on any Florida condo?

No. The condo project usually needs FHA or VA approval, or a single-unit approval for FHA. Ask your lender to check the building before you make an offer.

Do I need flood insurance to get a mortgage?

You do if the home sits in a high-risk flood area and the loan comes from a government-backed lender. Even outside those zones, many owners still choose to buy it.

Sources

• FHFA, conforming loan limit values for 2026
• HUD, FHA announces 2026 loan limits
• HUD, FHA and GSE mortgage limits lookup
• CFPB, FHA loans
• CFPB, loan options
• CFPB, when can I remove PMI
• Fannie Mae Selling Guide, HomeReady eligibility
• Fannie Mae Selling Guide, ineligible projects
• VA, home loan limits
• VA, funding fee and closing costs
• FEMA, flood insurance
• Florida Realtors, home insurance rate cuts (September 2026)
• Miami Realtors, Palm Beach County August 2026 report
• Miami Realtors, St. Lucie County August 2026 report

This article is general information, not legal, tax or financial advice. Loan limits, fees and lender rules change, so confirm the details with a licensed lender before you commit.

Selling one home to buy the next? Find out what your current home would sell for with a free home valuation, so you know how much you can put down. If you are buying, our agents can set up a buyer strategy call and help you match the right loan to the right property. Talk with our team.