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3% Down · Conventional

3% Down Conventional Loan

3% Down Conventional Loan — how it works, what it costs, and who qualifies.

Down Payment %
3%
On a $400K Home
$12,000
Loan Amount
$388,000
Sample Price
$400,000
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NMLS# 1859012 · Equal Housing Lender
3% Down · Conventional

3% Down Conventional Loan in Florida

On a conventional loan, 3% down avoids FHA's upfront premium. It uses PMI that cancels at 20% equity instead of lasting the loan's life. For a buyer with a 680+ score, the conventional route is often cheaper per month. We run it against FHA so you see the real difference.

Three percent down is the minimum on conventional loans like Fannie Mae HomeReady and Freddie Mac Home Possible. It beats FHA for many buyers because the PMI cancels once you reach 20% equity instead of lasting the life of the loan.

On a $400,000 home that is $12,000 down. Because it is conventional, you avoid FHA's upfront mortgage insurance premium, and the monthly PMI drops off automatically as your equity grows. For a buyer with a 680+ score, 3% down conventional often costs less per month than 3.5% down FHA.

HomeReady and Home Possible add income flexibility — you can count a boarder's rent or a co-borrower who will not live in the home. We run both the FHA and the 3% conventional numbers side by side so you see the real monthly difference.

3% Down at a Glance

✓Conventional minimum down payment at 3% of the price.
✓PMI cancels at 20% equity — it is not permanent like FHA.
✓No upfront mortgage insurance premium to finance.
✓HomeReady / Home Possible allow flexible income sources.

Read the full 3% down guide, or compare other loan types: FHA · First-Time Buyers · Florida.

3% Down Snapshot
3%Down Payment %
$12,000On a $400K Home
$388,000Loan Amount
$400,000Sample Price
How It Works
01
Apply Online
5 min · soft credit pull only
02
Match Program
We shop lenders + assistance
03
Processing
Our team handles paperwork
04
Close
Typically 14–21 days
FAQ

3% Down Conventional Loan Questions

Is 3% down better on a conventional loan?

For stronger credit, often yes. Conventional skips FHA's upfront mortgage insurance and its PMI eventually cancels, so the long-run cost can be lower. We compare 3% down on conventional versus FHA for your exact numbers.

Is 3% down conventional better than 3.5% FHA?

Often, yes, for buyers with a 680+ score. You put down slightly less, skip FHA's upfront premium, and your PMI eventually cancels instead of lasting the loan's life. FHA still wins for lower credit scores. We compare both for your exact numbers.

Who qualifies for a 3% down mortgage?

Most buyers with a 620+ credit score and steady income qualify for a 3% down conventional loan. HomeReady and Home Possible add income limits in some areas but also allow flexible income. We check which 3% program fits your file.

Official resources

Verify the details for your own situation against these government and agency sources: Fannie Mae HomeReady and Freddie Mac Home Possible.

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3% Down Conventional Loan?

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Figures are illustrative only and based on a sample purchase price. APR, payments, and assistance amounts vary by credit score, loan amount, income, and market conditions. Subject to credit approval. Not a commitment to lend. NMLS# 1859012. Equal Housing Lender.