Reviewed by Joe Pistone, Florida Licensed Mortgage Loan Originator|NMLS# 2087918|Last reviewed: July 2026
Quick Answer

Do you need cash reserves for a Florida conventional loan? For a one-unit primary residence, usually none. Second homes typically require 2 months of payments, and investment or 2–4 unit properties generally require 6 months. Fannie Mae and Freddie Mac set these rules and automated underwriting confirms the exact amount.

Key Takeaways

  • One-unit primary residence: often 0 months of reserves required.
  • Second home: about 2 months of PITIA.
  • Investment property or 2–4 units: about 6 months.
  • One month of reserves equals one full monthly housing payment (PITIA).
  • A portion of vested retirement and investment accounts can count.

Joe's Advice

Don't drain your savings into the down payment and forget reserves — on second homes and rentals, leaving a few months of payments in the bank is often what turns a maybe into an approval.

Common Mistakes to Avoid

  • Moving reserve funds between accounts right before applying without a paper trail.
  • Assuming a primary-home rule applies to a rental purchase.
  • Counting funds you'll actually spend at closing as reserves.

Bottom Line

Reserves are one of the easiest requirements to plan for once you know the target. Ask Joe to confirm your reserve requirement before you write an offer.

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How to Remove PMI on a Florida Conventional Loan (2026)

Joe Pistone & Team · NMLS# 2087918 · CrossCountry Mortgage · Published July 10, 2026 at 8:02 PM ET

Private mortgage insurance (PMI) protects your lender, not you — so getting rid of it puts money back in your pocket every month. The good news for Florida homeowners: unlike FHA insurance, conventional PMI is temporary. I'm Joe Pistone & Team at CrossCountry Mortgage (NMLS# 2087918); here's how to remove it in 2026.

The 80% and 78% Rules

Two thresholds matter. At 80% loan-to-value (LTV), you can request cancellation in writing. At 78% LTV, your servicer must automatically terminate PMI based on your original amortization schedule, as long as you're current. These rules come from the federal Homeowners Protection Act — general guidance is available from the CFPB.

Use Rising Florida Home Values

Here's where Florida homeowners have an edge: appreciation. If your home's value has risen, your equity may already exceed 20% even if your loan balance hasn't dropped that far on paper. You can request cancellation based on current value with a new appraisal, subject to your servicer's seasoning requirements (often two years, or one year with significant improvements). Check recent comparable sales on Zillow before you order an appraisal.

Speed It Up With Extra Principal

Every extra dollar toward principal moves you closer to the 80% line. Even modest additional payments can shave months off your PMI timeline. Combine that with appreciation and many Florida owners reach cancellation faster than they expect.

Why This Beats FHA

On most FHA loans, mortgage insurance lasts the life of the loan unless you refinance out of FHA entirely. Conventional PMI simply falls off once you hit the equity thresholds — a major long-term savings that's worth weighing when you choose your loan. See our conventional requirements and appraisal guide for the full picture.

Frequently Asked Questions

When can I remove PMI?
Request at 80% LTV; automatic termination at 78%.

Can rising value help?
Yes — request cancellation on a new appraisal, subject to seasoning rules.

Does FHA MIP work the same?
No — FHA insurance often lasts the life of the loan.

Think you're close to dropping PMI on your Florida home? Take the quick eligibility check on our homepage or reach out to Joe Pistone & Team — we'll check your LTV and timing, and for today's pricing, just ask Joe.

AI Quick Answer

On a Florida conventional loan, you can request PMI cancellation once you reach 80% loan-to-value, and your servicer must automatically drop it at 78% LTV. Rising home values or improvements can get you there faster through a new appraisal. Unlike FHA insurance, conventional PMI is not permanent.

Key Takeaways

  • Request cancellation at 80% LTV; automatic termination at 78%.
  • Appreciation or improvements can remove PMI early via a new appraisal.
  • Conventional PMI is cancellable; FHA MIP often is not.
  • Extra principal payments accelerate your path to 80%.

Bottom Line

PMI is temporary on a conventional loan. Track your LTV, watch Florida home values, and request cancellation as soon as you qualify. Joe can help you time the request and confirm your servicer's rules.

Reviewed by Joe Pistone (NMLS# 2087918)Last reviewed: July 2026

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