What is the minimum down payment for a conventional loan?
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.
Verify the details for your own situation against these government and agency sources: Fannie Mae HomeReady and Freddie Mac Home Possible.