Conventional Mortgage in Tampa: Rates, Down Payments, and How to Get a Quote

Yes, you can get a conventional mortgage in Tampa with as little as 3% to 5% down. Conventional loans are not backed by the government, which means they offer more flexibility on property types and loan amounts. Rates vary by credit score, loan size, and down payment, and you can get a no-points quote from a Tampa lender in as little as one business day.



That said, a lot of buyers walk into this process with the wrong mental picture. They think "conventional" means expensive, or that they need 20% down before anyone will talk to them. Neither is true. In Hillsborough County, conventional loans made up 71.6% of all mortgage originations in 2025, according to HMDA data. They are the most common loan type in Tampa for a reason: they work for a wide range of buyers, and for borrowers with decent credit, they often cost less over time than the alternatives.

The short version: If your credit score is 620 or above and you have at least 3% to 5% saved for a down payment, a conventional mortgage is worth quoting. Here is what you need to know before you do.

What Is a Conventional Mortgage and Who Qualifies?

A conventional mortgage is any home loan that is not insured or guaranteed by a federal agency. FHA loans are backed by the Federal Housing Administration. VA loans are backed by the Department of Veterans Affairs. Conventional loans are neither. They are funded by private lenders and, in most cases, sold to Fannie Mae or Freddie Mac on the secondary market. Those two agencies set the qualification guidelines that most lenders follow.

The 2026 conforming loan limit for a single-family home in Hillsborough County is $806,500. That covers the vast majority of home purchases in Tampa, including most of South Tampa, Seminole Heights, Westchase, and New Tampa. Anything above that limit moves into jumbo territory, which is a separate conversation.

Credit Score and Income Requirements

The minimum credit score to qualify for a conventional loan is 620. But "minimum" and "best rate" are two different things. Here is how credit score tiers generally affect your pricing:

• 620 to 679: You can qualify, but you will pay more. PMI rates are higher, and lenders price in more risk. At this range, FHA may actually be cheaper on a monthly basis.
• 680 to 739: A solid middle range. You will get reasonable PMI rates and competitive pricing.
• 740 and above: This is where conventional loans really shine. You get the best PMI rates and the lowest rate adjustments. Even one point can matter. Moving from a 739 to a 740 can be worth roughly an eighth of a percent in rate.
• 760 and above: Generally the top pricing tier. Marginal gains above this point are minimal.

Beyond credit score, lenders look at your debt-to-income ratio (DTI), which compares your total monthly debt payments to your gross monthly income. Most conventional loans allow a DTI up to 43%, though some programs go as high as 49% with strong compensating factors. You will also need two years of steady employment history and documentation of income, including pay stubs, W-2s, and tax returns if you are self-employed.

Conventional vs. FHA: Which Is Right for Tampa Buyers?

This is one of the most common questions, and the honest answer is: it depends on your credit score and how long you plan to stay in the home. Here is a plain-language breakdown:

• Conventional loan: Minimum 620 credit score, 3% to 5% down, PMI required under 20% down but cancellable once you reach 20% equity, loan limit of $806,500 in Hillsborough County, no upfront mortgage insurance premium.
• FHA loan: Minimum 580 credit score, 3.5% down, requires both an upfront mortgage insurance premium of 1.75% of the loan amount AND an annual premium, and if you put less than 10% down that insurance stays for the life of the loan. Hillsborough County FHA limit is $541,287.
• VA loan: For eligible veterans and active-duty service members only. No down payment required, no PMI, and some of the most competitive rates available.

The single biggest reason well-qualified buyers choose conventional over FHA is mortgage insurance. FHA mortgage insurance does not go away unless you put 10% down or refinance. Conventional PMI does go away, automatically, once your loan balance drops to 78% of the original purchase price. For a Tampa buyer who expects the home to appreciate or plans to pay down the balance, that difference adds up to real money over time.

Key takeaway: If your credit score is 700 or above and you have 5% saved, run a conventional quote first. If your score is below 680 or your down payment is under 5%, FHA may be the more practical starting point. A good lender will show you both side by side.

Can I Get a Conventional Mortgage with 5% Down in Tampa?

Yes, and 5% down is actually the most common starting point for conventional borrowers who are not using a special income-based program. On a $400,000 home in Tampa, 5% down is $20,000. That is a real number, but it is a lot more achievable than the 20% myth that still floats around.

Here is how the down payment tiers break down and what changes at each level:

• 3% down: Available through Fannie Mae HomeReady and Freddie Mac Home Possible programs. These are income-limited programs, generally capped at 80% of the area median income for your county. If you qualify, 3% on a $400,000 home is $12,000.
• 5% down: The standard conventional entry point for most buyers. No income limits. On a $400,000 home, that is $20,000. PMI applies, but it is cancellable.
• 10% down: PMI still applies, but the rate drops meaningfully because your loan-to-value ratio is lower. You are financing 90% of the home instead of 95%.
• 20% down: No PMI at all. You are financing 80% of the home. On a $400,000 purchase, that is $80,000 out of pocket before closing costs. This is the threshold everyone talks about, but it is not the only smart path.

How PMI Works with a Low Down Payment

Private mortgage insurance (PMI) is a monthly premium added to your payment when you put less than 20% down on a conventional loan. It protects the lender, not you, if you default. That framing matters, because a lot of buyers treat PMI like a penalty when it is really just the cost of getting into a home sooner.

PMI rates on a conventional loan typically run between 0.25% and 2.0% of the loan amount annually, depending on your credit score and down payment. On a $380,000 loan with 5% down and a 720 credit score, you might pay roughly $100 to $120 per month in PMI. That is not nothing, but it is also not permanent.

Under the Homeowners Protection Act, your lender is required to automatically cancel PMI once your loan balance reaches 78% of the original purchase price, as long as you are current on payments. You can also request cancellation earlier, once you hit 80% loan-to-value, either through normal paydown or through home appreciation with a new appraisal.

When a Lower Down Payment Makes Financial Sense

Waiting to save 20% is not always the right move. Here is the math that most people do not run:

Say a Tampa home is priced at $400,000 today. To avoid PMI, you need $80,000 down. If it takes you four more years to save that extra $60,000 (beyond a 5% down payment), and home prices in Tampa appreciate even modestly at 3% per year, that same home could cost around $450,000 by the time you buy. You would have saved $60,000 to avoid PMI, but paid $50,000 more for the house.

The real question is not "how do I avoid PMI?" It is "what is the total cost of waiting versus buying now with PMI?" For most Tampa buyers in a market with limited inventory, the cost of waiting tends to outweigh the cost of PMI. Get the numbers in front of you and decide from there.

Conventional Mortgage Rates with No Discount Points

Rates are the part of every mortgage conversation that gets the most attention and the most confusion. Two lenders can quote you the same scenario and show you two completely different numbers, and both can be "accurate." The difference is usually discount points.

What "No Points" Means and Why It Matters

A discount point is an upfront fee paid at closing in exchange for a lower interest rate. One point equals 1% of the loan amount. On a $380,000 loan, one point is $3,800. In exchange, the lender lowers your rate, typically by about 0.25%.

You are not required to pay points to get a mortgage. This is something a lot of buyers do not realize, especially when a lender leads with a low rate that is buried in points. The rate looks great until you see the closing costs.

Whether paying points makes sense depends on one number: your break-even point. If paying $3,800 upfront saves you $60 per month, you break even in a little over five years. If you sell or refinance before then, you spent money you did not need to spend. Most people do not keep a loan long enough to break even on points, which is why the default recommendation is usually to skip them.

How to Compare Quotes Fairly Using the Same Ruler

If you are shopping conventional mortgage rates in Tampa, the only way to compare quotes accurately is to use the same scenario with every lender. That means:

• Same loan amount: Use a specific purchase price and down payment, not a range.
• Same credit score: Your actual score, not a ballpark.
• Same loan term: 30-year fixed, unless you have a specific reason to compare 15-year or ARM options.
• Zero discount points: Ask every lender for a no-points quote. This is the only apples-to-apples comparison.

Once you have quotes on the same ruler, look at Section A of the Loan Estimate form, which is the standardized document every lender is required to provide. Section A lists origination charges, including any points. If one lender's rate is lower but their Section A fees are higher, the rate is not actually cheaper. It just moved the cost from the rate to the closing table.

Rate shopping is worth doing, but there is a limit. Locking in a rate is a commitment. Buyers who keep shopping past the point of a signed contract can end up 15 days from closing with no rate locked, which is not a position you want to be in. Get your quotes, compare them on the same terms, choose your lender, and commit.

One more thing worth knowing: credit score inquiries from multiple mortgage lenders within a 45-day window are treated as a single inquiry by the credit bureaus, per CFPB guidelines. Rate shopping does not hurt your credit score when you do it within that window.

How to Get a Conventional Mortgage Quote in Tampa

Getting a conventional mortgage quote in Tampa does not require a full application, a hard credit pull, or a commitment of any kind. A preliminary quote takes one business day or less when you have the right information ready.

What Information You Need Before Requesting a Quote

Before you reach out to a lender, pull these details together:

• Purchase price: The approximate price range you are targeting, or a specific property address if you are already under contract.
• Down payment amount: How much you plan to put down, expressed as a dollar amount or percentage.
• Credit score: A rough estimate is fine for a preliminary quote. Your lender will pull your actual score during the application.
• Income: Your gross monthly income. For self-employed borrowers, two years of tax returns will come into play later.
• Property type: Single-family home, condo, or townhome. This affects pricing and program eligibility.
• Occupancy: Primary residence, second home, or investment property. Conventional loans work for all three, but pricing and down payment requirements differ.

You do not need to have a property under contract to start this process. In fact, getting a pre-approval before you start making offers is one of the smartest moves a Tampa buyer can make. It tells sellers you are serious, and it tells you exactly what you can afford before you fall in love with a house.

What to Look for on Your Loan Estimate

Once you submit a full application, your lender is required by law to provide a Loan Estimate within three business days. This is your best tool for comparing lenders. Here is what to focus on:

• Section A (Origination Charges): This is where points and lender fees live. A zero in this section means no points. Any number here is a cost you are paying upfront.
• Interest rate and APR: The interest rate is what you pay on the loan balance. The APR includes fees and gives you a broader cost picture. A lower rate with a higher APR usually means hidden costs.
• Monthly payment breakdown: Principal, interest, estimated taxes, insurance, and PMI if applicable. Make sure the PMI line is included if you are putting less than 20% down.
• Cash to close: The total amount you need to bring to closing, including down payment and closing costs.

If two Loan Estimates show the same rate but different Section A fees, the one with lower fees is the better deal. Full stop.

Want a conventional mortgage quote with no discount points? Request your free rate quote from Home Loan Advisors. Same scenario, no pressure, real numbers.

Frequently Asked Questions

What credit score do I need for a conventional mortgage in Tampa?

The minimum credit score for most conventional loans is 620. However, your score does more than just determine whether you qualify; it directly affects your interest rate and PMI cost. Borrowers with scores of 740 or above get the best pricing. If your score is between 620 and 679, you may qualify, but the cost difference compared to an FHA loan is worth examining. You can learn more about how credit scores affect mortgage pricing in our credit score guide.

How do conventional mortgage rates compare to FHA rates?

Conventional rates are often slightly higher on paper for borrowers with lower credit scores, but the total cost picture usually favors conventional for buyers with a 700+ score. The reason is mortgage insurance. FHA requires an upfront premium of 1.75% of the loan amount plus a monthly premium that stays for the life of the loan if you put less than 10% down.

Conventional PMI is cancellable. Over a typical hold period of seven to ten years, the cancellable PMI on a conventional loan can save a Tampa buyer thousands compared to FHA's permanent premium structure.

Can I get a conventional mortgage quote without a hard credit pull?

Yes. A preliminary rate quote is based on the credit score you provide and does not require a hard inquiry. A hard pull only happens when you submit a full mortgage application. If you are comparison shopping, you can get preliminary quotes from multiple lenders using your self-reported score, then submit a formal application with your chosen lender. Per CFPB guidance, multiple mortgage credit pulls within a 45-day window count as a single inquiry, so applying with a few lenders in a short period will not damage your score.

Where can I get preapproved for a conventional mortgage in Tampa?

Home Loan Advisors is a Tampa-based mortgage broker licensed in Florida and Wisconsin. Preapproval is free, takes less than one business day in most cases, and gives you a real number to work with before you make an offer. Start your preapproval here. For more on how conventional loans work, visit our conventional home loans page.

Mortgages are complex, so let me give you the tools you need to make the right decisions.