How much down payment is required for a conventional loan?
As little as 3% down for eligible primary-residence borrowers (HomeReady, Home Possible, and standard 97% LTV programs). 5% down is common on standard conventional. 10% on second homes. 15-25% on investment properties. 20% down avoids monthly PMI.
What this actually means.
Conventional down payment minimums by occupancy and program: 1) Primary residence — 3% on HomeReady, Home Possible, or 97% LTV (income limits may apply); 5% on standard conventional; 2) Second home — typically 10% minimum; 3) Investment property — typically 15% on a 1-unit, 25% on 2-4 unit. Larger down payments improve pricing through LLPAs and reduce or eliminate PMI. Subject to Fannie/Freddie programs and lender overlays.
What this looks like on a real file.
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.