Can I get a conventional loan with 3% down?
Yes — through HomeReady (Fannie Mae), Home Possible (Freddie Mac), or standard 97% LTV conventional. Income limits may apply on HomeReady and Home Possible. PMI applies because LTV is above 80%, but PMI on these programs is often lower than standard conventional.
Plain-English explanation
Three main 3%-down conventional paths: 1) HomeReady — Fannie's program for borrowers at or below area median income (AMI), with reduced PMI; 2) Home Possible — Freddie's parallel program, similar AMI rules; 3) Standard 97% LTV conventional — available without income limits but with standard PMI factors. First-time-buyer status is required on some 97% products. Subject to program eligibility and lender overlays.
What can change the answer?
Gift source, seller credit limits, DPA program rules, source-of-funds documentation, and program eligibility (HomeReady, Home Possible) can change the answer.
Want the real answer for your conventional file?
Conventional guidelines are the rule. Your credit, income, DTI, PMI, LLPAs, and Florida payment math are what decide the actual answer.
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.