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Mortgage Glossary

Conventional 97

Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker

Conventional 97 is a Fannie Mae and Freddie Mac program allowing a 3% down payment on a primary residence.

What Conventional 97 means

It lets buyers use conventional financing with minimal down, paying PMI until they reach 20% equity. It's often cheaper than FHA for borrowers with solid credit.

Florida example

A Florida first-time buyer with a 740 score uses Conventional 97 to put just 3% down on a $350,000 home, paying $10,500 down plus PMI that cancels once they reach 20% equity.

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