Do I need 20% down for a conventional loan?
No. 20% down avoids monthly PMI, but it is not required. Conventional loans are widely available at 3%, 5%, 10%, and 15% down. The 20% myth comes from the PMI threshold — it's optional efficiency, not a requirement.
What this actually means.
The 20% number is widely repeated but inaccurate as a requirement. Below 20% down, conventional charges PMI (which can be removed later under specific rules). The math sometimes favors going in with less down, paying PMI for a few years until it cancels, and keeping the cash liquid for reserves, repairs, or another opportunity. The right structure is a file-level decision, not a one-size answer.
Where this can move.
Gift source, seller credit limits, DPA program rules, source-of-funds documentation, and program eligibility (HomeReady, Home Possible) can change the answer.
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More conventional questions on Down Payment.
Educational only. Conventional loan guidelines, lender overlays, rates, fees, PMI, LLPAs, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with Fannie Mae, Freddie Mac, FHFA, or any government agency.