How 3% down conventional programs work versus FHA 3.5% down, PMI, and first-time buyer paths. From The 2 Mortgage Guys at Luminate Bank, nationwide.
Home
Conventional Loans
3% Down
Yes. Many first-time homebuyers can purchase with just 3% down using conforming conventional programs. You will carry PMI until you reach 20% equity — and we will show you the exact monthly cost before you shop.
Fannie Mae HomeReady and Freddie Mac HomePossible are the most common paths to 97% financing on a primary residence.
FHA accepts lower credit scores and 3.5% down, but mortgage insurance often lasts much longer. Conventional 3% down can win on total cost if your credit and income are solid.
At 3% down you need $9,000 toward the purchase price (before closing costs). We will also estimate earnest money, prepaid items, and cash-to-close so there are no surprises.
Ryan and Steve confirm eligibility before you fall in love with a listing.
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We will check first-time buyer status, income caps, and real PMI pricing on today’s rate sheet.