What is the minimum down payment for a conventional loan?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
The minimum conventional down payment is 3% for eligible first-time buyers through programs like Conventional 97 and HomeReady. Repeat buyers typically need 5%.
With under 20% down you'll carry PMI, which drops off at 20% equity. We'll compare a low-down conventional against FHA to see which costs less monthly for you.
As low as 3%
The minimum down payment on a conventional loan is 3% for many first-time buyers through programs like Conventional 97. Repeat buyers often start at 5% down.
On a $300,000 home, 3% down is just $9,000. The old belief that you need 20% simply is not true for conventional loans.
The insurance trade-off
With less than 20% down, you pay private mortgage insurance until you reach 20% equity, then it drops off. That makes low-down conventional loans a temporary-cost option.
We will compare 3%, 5%, and 20% down so you see the real numbers. Reach out and we will find the down payment that fits your budget.