Understanding conventional loan requirements in Florida is the foundation for most homebuyers purchasing across Collier and Lee counties. It's the most common type of mortgage, and for a borrower with steady income and decent credit, it's often the most cost-effective. Still, "conventional" covers a lot of ground, and the requirements can surprise people, especially when their income has recently changed. Here's what lenders look at in 2026.

What makes a loan conventional

A conventional loan is a mortgage that isn't insured or guaranteed by a government agency like FHA or VA. Most conventional loans follow guidelines set by Fannie Mae and Freddie Mac so they can be sold to one of them after closing. Those are called conforming loans.

The 2026 loan limit in Collier and Lee counties

To be conforming, the loan amount has to be at or below the limit set each year by the Federal Housing Finance Agency. For 2026, that limit is $832,750 for a one-unit home in both Collier County and Lee County. Two- to four-unit properties have higher limits. A loan above the limit is a jumbo loan, which comes with its own rules. If you want more detail, we wrote a full post on the 2026 conforming loan limits in Collier County.

Key Conventional Loan Requirements in Florida That Lenders Review

On a conventional loan, the lender looks at four main areas.

Credit. Your credit history and scores affect whether you qualify and what your rate and mortgage insurance cost. Higher scores generally mean better pricing.

Income and employment. The lender needs to see income that is stable and likely to continue. For salaried borrowers, that usually means pay stubs, W-2s and a verification of employment. For self-employed borrowers, it usually means tax returns.

Debt-to-income ratio. The lender adds up your new housing payment and your other monthly debts and compares the total with your gross monthly income. In Southwest Florida, property insurance and HOA dues can push this number up, so we include real figures early.

Down payment and reserves. You don't need 20% down for a conventional loan. Borrowers who put down less than 20% usually pay private mortgage insurance. The lender will also want to see where your down payment came from and, depending on the loan, some money left over after closing.

Private mortgage insurance doesn't last forever

This is one of the advantages of a conventional loan. Under federal rules explained by the Consumer Financial Protection Bureau, you can ask your servicer in writing to cancel PMI once your balance is scheduled to reach 80% of the home's original value, or sooner if extra payments get you there, as long as you meet requirements like a good payment history. If you don't ask, the servicer generally has to end PMI automatically when the balance is scheduled to reach 78% of the original value, as long as you're current on your payments. Our guide to mortgage insurance covers how PMI works in more detail.

When your income changes: a W-2 to 1099 story

Here's a situation that comes up with self-employed buyers. A couple I worked with had recently moved from W-2 jobs to 1099 income. They were earning a good living, but on paper their new income was short on history, and that created a qualification problem with the usual guidelines.

Lenders want to see that income is stable. When someone moves from a salaried job to independent contractor work, many conventional guidelines want to see a track record of the new income, usually documented with tax returns. That can leave a gap where a borrower who is doing well doesn't qualify the standard way yet.

In their case, I found a financing option that allowed their 1099 income to be considered, and I helped them get approved. That doesn't mean every 1099 borrower will qualify for every loan. It means self-employment or 1099 income doesn't automatically rule out your mortgage options. It just means we have to look in the right places.

If your income has changed recently, or is about to, talk with me before you apply. Sometimes the order you do things in matters. Our post on how to document income for a mortgage in Florida explains what lenders usually ask for.

Fixed or adjustable?

Most conventional borrowers choose a fixed rate, and the 30-year fixed is the most familiar. A 15-year fixed builds equity faster with a higher payment. An adjustable-rate loan starts with a fixed period and then adjusts, which can make sense if you expect to move or refinance. I'm happy to compare the payments side by side for you.

Every situation is different, and that's why experience matters. I've been working in mortgages since 2002, and setting up a conventional loan the right way from the start saves a lot of stress later.

Frequently asked questions

What is the conventional loan limit in Naples for 2026?

The 2026 conforming loan limit for a one-unit home in Collier County is $832,750, set by FHFA. Lee County has the same limit.

Do I need 20% down for a conventional loan in Florida?

No. You can put down less than 20%, but you'll usually pay private mortgage insurance until you reach enough equity to remove it.

Can I get a conventional loan with 1099 income?

Often, yes, though lenders usually want to see a history of that income on your tax returns. If your 1099 income is new, there may still be options, and I can help you sort through them.

When does PMI come off a conventional loan?

You can request cancellation once your balance is scheduled to reach 80% of the home's original value, if you meet the requirements. PMI generally ends automatically when the balance is scheduled to reach 78%, as long as you're current.

If you are buying in Naples, Fort Myers or anywhere in Collier or Lee County and want to review conventional loan requirements in Florida, request a quote today.