Quick Summary: Conventional loans in West Palm Beach typically require a down payment between 3% and 20%, depending on your credit score and occupancy type. Most Palm Beach County homebuyers qualify with credit scores starting around 620, though stronger credit can unlock better rates and lower mortgage insurance costs. Private mortgage insurance (PMI) is required for down payments under 20% but can be removed later. Working with CTC Mortgage helps you understand which requirements apply to your specific situation and how to qualify efficiently.

What Is a Conventional Loan?

A conventional loan is a mortgage not backed by the government, such as FHA or VA. Instead, it follows guidelines set by Fannie Mae and Freddie Mac. In West Palm Beach, buyers often use conventional financing for primary residences, second homes, and investment properties because it offers competitive rates and flexible terms.

CTC Mortgage frequently helps Palm Beach County buyers compare conventional and non-conventional options to ensure they choose the best long‑term fit.

Down Payment Requirements

For most West Palm Beach homebuyers, down payment options include:

• 3% down – First-time buyers or qualifying income-based programs
• 5% down – Standard requirement for many conventional purchases
• 10%–15% down – Common for second homes or condos with stricter guidelines
• 20% down – Eliminates PMI and improves pricing

Your exact down payment requirement may vary depending on property type, credit profile, and whether the loan falls within conforming limits.

Credit Score Requirements

While conventional loans technically allow credit scores as low as 620, borrowers with higher scores typically benefit from lower rates and reduced PMI costs. In Palm Beach County—where many homes fall into mid-to-upper price tiers—stronger credit can make a significant impact on affordability.

CTC Mortgage helps West Palm Beach buyers review credit, identify opportunities for improvement, and estimate rate differences using various scoring tiers.

Conforming vs. High-Balance Loan Limits

The majority of conventional loans fall under conforming loan limits established annually by the Federal Housing Finance Agency (FHFA). Higher-priced areas, including parts of Palm Beach County, may qualify for high-balance conventional loans with increased limits.

Because loan limits change every year, buyers should always verify the current numbers using official sources:

• FHFA (Federal Housing Finance Agency): Provides annual conforming loan limit updates.
• Fannie Mae: Publishes county-by-county limit details.

To confirm today’s West Palm Beach/Palm Beach County loan limits, visit the FHFA website or Fannie Mae’s loan limit lookup tool before applying. CTC Mortgage also provides updated guidance during pre-approval.

Fixed-Rate vs. Adjustable-Rate (ARM) Conventional Loans

Most homebuyers choose between:

• Fixed-rate mortgages: The interest rate remains the same for the full loan term (15-, 20-, or 30-year). Ideal for buyers wanting long-term stability.
• Adjustable-rate mortgages (ARMs): Rates are fixed for an initial period (such as 5, 7, or 10 years) and adjust afterward. Useful for those planning to move or refinance within a predictable timeframe.

In West Palm Beach—where many buyers purchase second homes or investment properties—ARMs can sometimes offer beneficial short-term pricing. CTC Mortgage helps borrowers evaluate both options using personalized scenarios.

What Is PMI and When Does It Apply?

Private mortgage insurance (PMI) protects the lender when a borrower puts less than 20% down. PMI:

• Applies to most conventional loans with under 20% down
• Is influenced by loan amount, credit score, and down payment
• Can be paid monthly, upfront, or split depending on lender options

How to Remove PMI

Conventional loans make it relatively simple to eliminate PMI:

• Automatic removal: When your loan reaches 78% of the original value (based on the original amortization schedule)
• Borrower-requested removal: When you reach 80% loan-to-value (LTV) through regular payments or property appreciation, subject to an appraisal and lender approval

For West Palm Beach homeowners—where property values can rise quickly—PMI removal can happen sooner than expected.

Understanding Costs & Planning Your Budget

CTC Mortgage encourages buyers to estimate costs early using practical tools such as our mortgage calculators. These tools help you compare:

• Payment differences between down payment options
• Fixed vs. ARM scenarios
• Rate impacts across credit tiers
• PMI cost estimates

Explore Conventional Loan Options for West Palm Beach

Learn more about requirements, program highlights, and local guidance:

• West Palm Beach Conventional Home Loans
• Conventional Loan Overview

Request a Quote from CTC Mortgage

If you're purchasing a home in West Palm Beach or anywhere in Palm Beach County, CTC Mortgage can help you compare down payments, credit requirements, and PMI options to find the best conventional loan for your needs. Request a personalized quote today and take the next step toward homeownership with confidence.