What is a Conventional 97 loan?
The Conventional 97 is a Fannie Mae and Freddie Mac program allowing just 3% down for qualifying buyers, mostly first-timers. It's a low-down alternative to FHA with removable PMI.
Because PMI cancels at 20% equity, it can beat FHA over time for borrowers with solid credit. We'll check your eligibility and compare the monthly cost to FHA.
Just 3% down
A Conventional 97 loan lets you buy with only 3% down, financing 97% of the home's value. It is Fannie Mae and Freddie Mac's answer to FHA for buyers with good credit.
On a $300,000 home, that is a $9,000 down payment on a conventional loan with cancelable mortgage insurance.
Who qualifies
The program targets first-time buyers, though repeat buyers can qualify on some versions. You generally need a 620-plus score, and at least one borrower should be a first-time buyer.
Its big edge over FHA is that the mortgage insurance drops off at 20% equity. Apply now and we will see if Conventional 97 beats your other options.
Verify the details for your own situation against these government and agency sources: Fannie Mae HomeReady and Freddie Mac Home Possible.