Current conventional guidelines, updated from one source.
Treat these as the program’s fixed points rather than an offer: the minimum down payment for a first-time buyer and for everyone else, the credit floor behind these pages, the leverage at which mortgage insurance begins and the points at which it ends, and the ratio an automated approval allows.
First-time buyer; 5% standard; 97% loan-to-value at the top
The agencies set the floor at 3% down for a first-time buyer and 5% for a repeat buyer, on a principal residence; the whole down payment may be a gift from a relative on a one-unit home, and twenty percent down removes mortgage insurance from the payment entirely.
Priced on the score; no agency minimum with an automated approval
A 620 decision score opens the program on the wholesale side; the agencies set no minimum for an automated approval and 620 to 640 for manual underwriting by loan type. The strongest effect of the score is on cost, through loan-level adjustments and the mortgage insurance premium.
Required above 80% LTV; removed at 80% by request, 78% automatically
Above 80% loan-to-value the loan carries private mortgage insurance; at or below it, none. The insurance cancels on request at 80% of the original value and automatically at 78%, which is the single largest structural difference from FHA, whose premium at full leverage lasts for the term.
With an automated approval; 36% to 45% on a manual file
Lenders compare total debt against gross income, with limits up to 50% on an automated approval and 36% to 45% on a manual file. The housing payment counted includes the mortgage insurance while it applies, which is why cancellation changes the ratio as well as the payment.
| Purpose | Occupancy and program | Maximum LTV |
|---|---|---|
| Purchase | One-unit principal residence, first-time buyer (fixed rate) | 97% |
| Purchase | One-unit principal residence, standard | 95% |
| Purchase | HomeReady / Home Possible (income limits apply) | 97% |
| Purchase | Two- to four-unit principal residence | 95% |
| Purchase | Second home | 90% |
| Purchase | Investment property, one unit | 85% |
| Purchase | Investment property, two to four units | 75% |
| Refinance | Limited cash-out (rate-and-term), one-unit principal residence | 95% |
| Refinance | Cash-out, one-unit principal residence | 80% |
| Refinance | Cash-out, two to four units, second home or investment | 75% |
| Combined LTV | Maximum contribution |
|---|---|
| above 90 percent | 3% of the sales price |
| 75.01 to 90 percent | 6% of the sales price |
| 75 percent or less | 9% of the sales price |
| investment property (any) | 2% of the sales price |
| Event | Waiting period |
|---|---|
| Chapter 7 or 11 bankruptcy | four years from discharge or dismissal (two years with documented extenuating circumstances) |
| Chapter 13 bankruptcy | two years from discharge; four years from dismissal (two with extenuating circumstances) |
| Multiple bankruptcy filings | five years when more than one filing within the past seven years |
| Foreclosure | seven years (three with extenuating circumstances, then limited to a principal residence or second home at 90 percent LTV, purchase or limited cash-out) |
| Deed-in-lieu, short sale or mortgage charge-off | four years (two with extenuating circumstances) |
Mortgage insurance: Fannie Mae reports that private mortgage insurance typically ranged from 0.58%–1.86% of the loan amount a year; the premium on a specific loan is priced by the insurer on the score, the leverage, and the coverage, and is never quoted here. Gifts from relatives may fund the entire down payment on a one-unit principal residence. HomeReady and Home Possible lend to 97% with income at or below 80% of the area median; HomeOne lends to the same leverage with a first-time buyer and no income limit.
Current conventional snapshot · updated October 3, 2026 · principal residences occupied within sixty days, second homes, and one- to four-unit investment properties · conforming limits apply by county and are confirmed by a Lendmire loan officer · above the limit, see the jumbo program · no prepayment penalty · Lendmire is a broker, never the lender.
For informational purposes only. This is not a commitment to lend or extend credit, an offer, or a quote. Program parameters shown are Fannie Mae and Freddie Mac guidelines and wholesale lender overlays, are subject to change without notice, and every figure depends on the borrower, the property, the occupancy, the automated underwriting finding, and full underwriting. Mortgage insurance figures are published typical ranges and editable estimates, not premium quotes. Conforming loan limits apply by county. Lendmire is a mortgage broker, not a lender. Licensed in sixteen states for consumer mortgages. NMLS #2371349.
What a conventional loan is — and how the file is qualified.
The difference between a conventional loan and a government loan is who stands behind it. No agency insures a conforming loan; a private insurer covers the top slice above the threshold, and the agencies buy the loan on their rules. That structure explains each of the four pieces below for a Clearwater buyer.
For the program overview, see Lendmire’s conventional loan program, or the statewide guide at Conventional Loans in Florida; for the mortgage insurance cancellation rules, see the CFPB.
Leverage by occupancy and buyer
Leverage on a Clearwater conventional loan is a table rather than a single number: purchase against refinance, principal residence against second home against rental, one unit against several. Each cell has its own maximum, a cash-out refinance sits below the purchase ceiling for the same occupancy, and the snapshot shows the whole table.
Credit scores and automated underwriting
The automated system reads the score and the credit events together, and a derogatory event does not end eligibility; it starts a clock. Bankruptcies, foreclosures, short sales, and deed-in-lieu transfers each carry a waiting period in the agencies’ guides, shortened by documented extenuating circumstances, and the snapshot shows each one for a Clearwater buyer.
Mortgage insurance that cancels
Twenty percent down means no mortgage insurance at all, and anything less means insurance for a while. The calculator on this page shows the Clearwater payment with the estimated premium and the payment after it ends, along with the month on the amortization schedule when the request and automatic thresholds arrive.
Ratios, reserves, and the DU finding
Total debt-to-income is the ratio that counts: the full housing payment, insurance included, plus every monthly obligation, against gross income. Automated approvals reach the higher ceiling in the snapshot; manual files are held to the lower pair, with the higher of the two needing the matrix’s credit and reserve criteria.
None of this is a decision. The appraisal can come in under the price, the rate is set at lock, the premium is set by the insurer, and the automated finding sets the reserves. What stays fixed is the structure the calculator reproduces: price, down payment, leverage, insurance, payment.
Where Clearwater buyers borrow — and how a conforming loan fits.
Three Census figures frame a Clearwater conventional file. Ownership says how much of the market the program reaches, the median value says what a low-down-payment loan typically comes to, and household income says what ratio that payment produces.
Citywide figures provide general market context, not an appraisal or an income calculation. Read the figures as ranges, not predictions. The lender appraises one home, documents one income, and lets the automated system read one credit file.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Distinct Clearwater neighborhoods, distinct conventional files.
No single conventional file describes Clearwater. The submarkets below differ in housing stock, price, occupancy mix, and the appraisal questions they raise, and each one shapes how a conforming loan is put together.
Two-to-four-unit homes
The owner-occupied multi-unit Clearwater file is a conventional specialty with its own leverage, its own rent-counting rules, and its own reserve requirement. The buyer in one unit qualifies on the combined picture. Roughly 29,287 Clearwater households own their homes on the latest Census estimate — 59% of all households, the pool a conventional purchase joins.
Newer infill and recent construction
New rows and recent infill in Clearwater tend to appraise cleanly, so the loan amount is the question: a contract near the conforming limit is checked against the county figure before the offer, and a loan above it needs a larger down payment or the jumbo program. The median owner-occupied home value in Clearwater runs near $361,300 on the latest Census estimate.
Higher-value homes
The higher-value Clearwater file is a limit question, not an eligibility question. The conforming limit caps the loan amount, and the buyer either adds down payment to fit under it or chooses the jumbo route for the whole purchase. On a one-unit principal residence at Clearwater’s median value, the first-time buyer’s minimum down payment comes to about $10,800 and the standard minimum to about $18,100 — before closing costs, and before the mortgage insurance that comes with either; a second home, a multi-unit home, or a rental starts higher, as the leverage table shows.
Investor and second-home purchases
Clearwater rentals and pied-à-terre purchases run on conventional loans because FHA and VA finance principal residences only. Conventional terms include investment and second-home leverage in the snapshot, reserves for each financed property, and adjustments for the occupancy. Median household income in Clearwater sits near $66,381 on the latest Census estimate.
Established close-in neighborhoods
An older Clearwater house is a routine conventional purchase; the appraisal is lighter on condition than a government appraisal, which is one reason buyers of older homes often choose this program. The value against the contract price is the usual question. Clearwater is home to about 117K people and sits within the Tampa-St. Petersburg-Clearwater, FL area.
Condominiums and townhomes
A Clearwater condominium in an established project is a conventional file with the project review added. Established projects usually pass; new or investor-heavy ones draw questions, and a project that fails goes to a portfolio lender on different terms. About 41% of Clearwater’s households rent — roughly 20,711 renter households on the latest Census estimate.
Across all of Clearwater, five questions settle a conventional loan: what the appraisal supports, whether the property passes the agencies’ review, how the home will be occupied, what the score costs, and what the ratio and reserves allow.
Four ways Clearwater buyers put a conforming loan to work.
Clearwater borrowers use conforming loans for reasons that repeat, from the first purchase at the first-time-buyer minimum to the refinance on a home with equity, and the cards below take up the ones that come up most often.
Buy with twenty percent down and no insurance
The move-up Clearwater buyer selling one home and bringing twenty percent to the next usually lands here: no mortgage insurance, the strongest cost tier the score earns, and a loan the automated system reviews with the equity brought forward counted in the file.
Buy a condominium in a warrantable project
A Clearwater condominium is a conventional purchase when the project passes the agencies’ review: owner-occupancy mix, budget and reserves, litigation, commercial space, and ownership concentration. The dues enter the ratio, and the leverage follows the occupancy as it would on a house.
Buy a second home
Conventional financing is the consumer program that reaches a second home: a Clearwater buyer brings the down payment the leverage table shows for that occupancy, qualifies on the full payment of both homes, and shows the reserves the finding requires. The home must be for the owner’s use, not a rental business.
Buy a first home at the first-time-buyer minimum
The first purchase on a conventional loan starts at the first-time buyer’s minimum in the snapshot, with the whole amount allowed as a family gift. A Clearwater buyer with a solid score may pay less each month than on FHA because the insurance is priced on the score and ends; the comparison is run on the actual numbers.
Estimate the payment on a Clearwater price before requesting a quote.
The program’s own math on your Clearwater inputs: price less the down payment, amortized at the benchmark, with the insurance estimate added while the leverage is above the threshold and the escrows added throughout. The actual rate, premium, payment, and costs come in writing from a licensed loan officer.
Clearwater conventional payment estimate
Use the Clearwater defaults as a starting point and change the price, the down payment, the buyer type, the term, the insurance estimate, and the escrows to fit.
Editable benchmark: 7.28% as of October 1, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not a conventional loan quote.
Estimate seeded at the low end of Fannie Mae’s published range (0.58%–1.86% a year); the insurer prices the actual premium on the score and the leverage. Applies only above 80% loan-to-value.
Illustrative starting assumptions: a $360,000 price near Clearwater’s median owner-occupied home value, the first-time buyer’s minimum down payment, a thirty-year term at the current Freddie Mac benchmark, mortgage insurance at the low end of Fannie Mae’s published range, property taxes and insurance estimated for Florida (U.S. Census Bureau). Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not a conventional loan quote; your rate is set by the lender at lock. The mortgage insurance figure is an editable estimate seeded from Fannie Mae’s published typical range, not a premium quote; the insurer prices the actual premium, and the cancellation month assumes scheduled payments with no extra principal and no change in value. Taxes, insurance and dues are editable estimates; closing costs are not included. Conforming loan limits apply by county. Licensed in sixteen states for consumer mortgages.
Same buyer, three very different closings.
The score, the down payment available, VA eligibility, and the expected length of the loan decide which program wins. Here are the three, one next to the other.
Conventional, FHA, or VA.
The program’s strengths are the cancellable insurance, the breadth of occupancies, and a cost structure that rewards a strong score; its weakness is the same structure applied to a weak one. A Clearwater buyer with a strong score usually pays less each month here than on FHA.
Where conventional prices the score, FHA prices by schedule. FHA fits the buyer whose score would be priced heavily on a conventional loan, or who needs the room FHA’s ratio tiers allow; it rarely wins for a Clearwater buyer with strong credit and a down payment above the minimum. See Lendmire’s FHA loan program.
For an eligible veteran, service member, or surviving spouse, the VA loan drops the down payment and monthly insurance for a one-time funding fee that many disabled veterans do not pay. Where eligible, it usually beats conventional for a Clearwater principal residence; conventional still wins the second home and rental. See Lendmire’s VA loan program.
Conventional for the solid score, the move-up buyer, the second home, and the rental; FHA for the modest score and the small investment; VA for the eligible borrower buying a principal residence. The Clearwater file is priced on all three before one is recommended. Above the conforming limit, see the jumbo loan program.
What to prepare for a Clearwater scenario review.
What a lender reads on a Clearwater conventional loan, and what you can have ready before anyone asks.
This is a general preparation guide, not a universal checklist. The selected lender may request additional information based on the transaction, the property, the automated underwriting finding, and the income picture. Nothing here is legal or tax advice.
Local details that can change the loan.
The percentages tell only part of the story. What a Clearwater conventional loan actually becomes depends on the score, the appraisal, the project review, and the automated finding, and these are the details that move it.
Use these checks to keep the Clearwater file clean and fundable.
Before asking for a quote, know three answers: how much insurance the leverage carries and for how long, what the score does to the price, and whether the property and the loan amount fit the conforming program.
- Plan the insurance: twenty percent down carries no insurance at all.
- Confirm the score: the score sets the loan-level adjustments and the insurance premium more than it gates the loan.
- Match the occupancy: second homes and investment property carry their own leverage and reserves.
Mortgage insurance: how much, and until when
The premium on a Clearwater loan can be paid monthly, paid by the lender in exchange for a different price, paid as a single premium at closing, or split. The monthly structure cancels under the federal rules, and the others are set by the lender. The calculator shows the monthly structure and the month the thresholds arrive on scheduled payments.
The score sets the cost
The score does two jobs on a Clearwater file: it feeds the automated assessment alongside the rest of the credit file, and it sets the cost of the loan and the insurance. A buyer close to a cost tier sometimes gains more from a short wait and a paid-down balance than from any other change.
Occupancy and its leverage
Each occupancy has its own leverage limit and loan-level adjustments: a principal residence occupied within sixty days of closing reaches the top of the table, a second home is lower, an investment property lower still. A Clearwater buyer who states one occupancy and uses another has misrepresented the loan.
Second homes, rentals, and financed-property limits
A Clearwater household can hold several conventional loans at once, but each financed property adds reserves to the next file and the agencies cap the number of financed properties a borrower may have. Second homes and rentals are leveraged lower than a principal residence and priced for the occupancy.
Waiting periods after a credit event
The agencies season credit events rather than barring them: each bankruptcy chapter, a foreclosure, a deed-in-lieu, and a short sale carry their own period, shortened by documented extenuating circumstances. The snapshot table shows each one for a Clearwater buyer planning the timing.
From a Clearwater pre-approval to keys in hand.
Underneath, the Clearwater process is any mortgage process; what makes it conventional is the automated finding, the project review where it applies, the leverage by occupancy, and the insurance threshold. Each step below says what happens and what the buyer does.
Pre-approval
The first conversation settles the shape: whether the buyer counts as a first-time buyer, what leverage the occupancy allows, how much insurance the down payment carries, and whether conventional is the right program next to FHA and VA for the Clearwater purchase.
Contract and appraisal
The Clearwater contract sets the price and the contributions; the appraisal, or the system’s value acceptance, sets the value. Both feed the loan amount, and the lender confirms the project review and the conforming limit before underwriting begins.
Underwriting
The underwriter verifies what the automated finding assumed: income, assets and reserves, credit and any seasoning, occupancy, and the property. A manual file follows the lower ratio pair instead. Conditions are issued, documented, and cleared before final approval.
Closing
At closing the loan funds at the chosen leverage, mortgage insurance starts with the first payment if the loan is above the threshold, and escrows for taxes and insurance are set up. A Clearwater buyer signs the note and security instrument, occupies the home within the occupancy window, and the agency buys the loan.
A brokerage that prices the whole market.
The case for a brokerage on a conventional loan is candor with numbers: the same file priced across programs, the insurance premium and its cancellation month stated outright, the leverage checked against the occupancy, and the terms in writing.
Several programs, one set of numbers
Before any recommendation, the Clearwater file is priced across the wholesale programs Lendmire works with and run against FHA and VA on the same price, score, and down payment. The buyer sees the payment, the insurance line, and the cash to close for each, and the choice follows the figures.
The insurance explained before the offer
The premium and its exit are decided by the leverage and the score, and a buyer should know both before signing a contract. Lendmire states the structure for the Clearwater purchase, shows the payment before and after cancellation, and explains the request and automatic thresholds.
Licensed, consumer-purpose, in writing
Lendmire carries the license for the state the Clearwater home is in, delivers the disclosures a consumer mortgage requires, and commits the terms to paper. The program figures on this page are read from one guideline source built on the agencies’ published guides.
Trusted by buyers & families alike.
Clearwater conventional loan FAQs
The questions below come up on nearly every Clearwater conventional conversation. The answers are general; the figures in the snapshot above are the program’s current parameters.
What is a conventional loan, and who is it for?
The general-purpose mortgage: conforming to the agencies’ guides, priced on the credit score, insured privately only while the leverage is above the threshold. It is the program most Clearwater buyers compare first and, of the three compared here, the one that reaches a second home or an investment property.
How much do I need to put down on a conventional loan in Clearwater?
It depends on who is buying and how the home will be used. A first-time buyer starts at the lowest figure in the snapshot, a repeat buyer slightly higher, and a Clearwater second home or rental higher still. Twenty percent down removes mortgage insurance entirely.
What credit score do I need for a conventional loan?
The practical answer is the floor in the snapshot, and the useful answer is that every tier above it lowers the cost. A Clearwater buyer with a modest score should run FHA beside conventional, because FHA prices its insurance by schedule rather than by score.
How does private mortgage insurance work, and when does it end?
It is temporary insurance for the lender, paid by the borrower while the loan sits above the threshold. On a Clearwater loan with scheduled payments the calculator shows the month the balance reaches the request point and the automatic one; extra principal or a rise in value, recognized by the servicer, can bring the request point sooner.
What is the conforming loan limit in Clearwater?
The limit is the first thing confirmed on a Clearwater file near the top of the market. These pages state the program’s structure rather than a number that changes every year; the current figure comes from a loan officer.
Can I get a conventional loan after a bankruptcy or foreclosure?
Each event has its own period counted from a specific date, and the lender confirms it from the documents. Clean credit since the event and a rebuilt score carry weight once the period has run.
What does the appraisal check on a conventional loan?
Value against the contract price, and condition against the lender’s standard of safe, sound, and marketable. Older Clearwater homes draw condition notes more often; most are settled before closing.
What debt-to-income ratio does a conventional loan allow?
It depends on the underwriting path. The snapshot shows the automated maximum and the manual pair; enter income in the calculator to see where a Clearwater scenario lands against the automated figure.
Can I buy a rental property with a conventional loan?
Yes, one to four units, at the investment leverage in the snapshot table, with the rental income counted toward qualifying under the agencies’ rules and reserves required for each financed property. The agencies also cap the number of financed properties one borrower may hold, and the loan is written under their investment-property rules rather than as an investor DSCR loan.
Should I choose a conventional loan or FHA?
Conventional tends to fit the buyer with a strong score, because its insurance cancels and carries no upfront premium; FHA tends to fit the buyer with a modest score, because its ratios stretch further. The answer for a Clearwater buyer comes from the numbers, not the label.
A Clearwater conventional loan sized to the price, the score, and the leverage.
Put your Clearwater figures into the calculator, then ask for a review. The leverage, the insurance structure, the cost tier, and the conforming limit are confirmed against the agencies’ rules, and a licensed loan officer provides the terms in writing.
This guide covers Clearwater — for the statewide guidelines, markets, and scenarios, see Conventional Loans in Florida, part of Lendmire’s conventional loan program.
Nearby markets in Florida: Largo · Pinellas Park · St. Petersburg · Tampa · Anna Maria · Bradenton · Lakewood Ranch · Sarasota
Related programs: FHA Loans · Jumbo Loans · Refinance Loans