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.
Most 3% programs target buyers who have not owned a home in the last three years — or meet other first-time definitions.
Some products have area median income (AMI) caps. Others do not. We check your census tract and household income early.
Expect mid-600s credit as a practical floor, with DTI commonly targeted under 45–50% with compensating factors.
Many low-down programs require a short homebuyer education course — easy to complete online before closing.
You pay private mortgage insurance while LTV stays above 80%. It can be removed later as you build equity.
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.
Step 1
Verify ownership history and which 97% products fit your profile.
Step 2
Credit score and LTV drive monthly PMI — we use live pricing grids.
Step 3
A strong letter helps your low-down offer compete with cash buyers.
Step 4
Keep cash for closing costs and post-closing reserves after the 3% down.
Related guides to help you compare options and move toward pre-approval.
2MG Daily
Recent articles from our blog on conventional loans, credit, and homebuying.
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Typically first-time homebuyers (or buyers who have not owned in the last three years) who meet credit, income, and DTI guidelines on HomeReady, HomePossible, or similar 97% LTV products.
No, but stronger scores lower your rate and PMI. Many programs start around 620, with better pricing at 680–740+.
Yes. Private mortgage insurance is required until you reach roughly 20% equity. Conventional PMI can later be cancelled — a big advantage over FHA.
Usually not on standard 97% programs. Most repeat buyers need at least 5% down, unless a specific lender product allows otherwise.
We will check first-time buyer status, income caps, and real PMI pricing on today’s rate sheet.