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.
What this actually means.
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.
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.