VA Mortgage Hub

Florida VA Home Loans

PH: 800-743-7556

  • Home
  • VA Loan News
  • VA Purchase
    • VA Purchase
    • VA Purchase FAQ
  • VA Refinance
    • VA Refinance
    • VA Refinance FAQ
  • Glossary
  • Info Request Form
  • About Us
    • Testimonials

Conventional Home Loans With 3% Down Payment

This page updated and accurate as of March 21, 2023 VA Mortgage Hub

Conventional Loan 3 percent downConventional home loans with 3% down payment are now available for approved home buyers nationwide. 97% Conforming loans are a great tool to help first-time buyers who may not have the resources for a larger down payment loan. The program allows them to receive loans requiring little to no down payment.

Keep in mind there are a few government-backed home loans that still offer 100% financing for eligible home buyers.  However, they come with stipulations regarding approval.  VA loans require the borrower to be military or a Veteran with proper entitlement. With USDA loans, the property must be located in a rural deemed location and there is also income limits.

The 97 Conventional loan program provides a good solution to borrowers that do not meet VA or USDA requirements. Fannie Mae offers guidelines and tools that enhance the benefits of 97% conventional mortgage, the flexibility built into the program are what distinguish it from other programs in the market.

97% Conventional Mortgage Highlights

  • The program provides a maximum loan to value (LTV), Combined Loan to Value (CLTV), and High or Home Equity Combined Loan to Value (HCLTV) is 97%.
  • Cash gifts from family or eligible sources may be used for down payments and reserves.
  • The program caps the upfront monthly costs of mortgages.
  • The program supports the long term success of buyers.
  • Private Mortgage Insurance (PMI) cancels when the loan reaches 80% LTV.
  • Manufactured homes are not eligible for 97% LTV loans.

97% Conventional Loan Requirements

  • Only 30-year fixed rate mortgages are allowed.
  • Only available for low to moderate income families.
  • The program requires a minimum of 3% down payment.
  • May require home buyer education prior to loan closings.
  • Borrowers are required to pay Private Mortgage Insurance (PMI).
  • At least one of the borrowers on the loan must be a first time home buyer.
  • The loan must be used for a 1 unit primary residence (including Condos and PUDs).
  • Borrower must score more than 620 on the Loan Level Price Adjustment (LLPA) chart.

Other than these features, 97% conventional mortgage financing is quite similar to other conventional mortgage types. But because the mortgage insurance goes away at 80% LTV, it can become a better value over time, especially if you are a borrower with high credit scores. The higher your credit scores, the cheaper mortgage costs. You can check your eligibility today by contacting us 7 days a week.

Primary Sidebar

Info Request Form

Questions? Please submit the short form below for fast service, 7 days a week.

  • Trusted secure
  • This field is for validation purposes and should be left unchanged.

Calculate Mortgage Payments

www.mlcalc.com

Follow Us On

equal housing
VA Mortgage Hub is operated by Coast2Coast Mortgage NMLS# 376205
9050 Cypress Green Dr. Suite #403
Jacksonville, FL 32256
Please visit us at www.Coast2CoastMortgage.com
www.VAMortgageHub.com is not affiliated with any government agency.

Have questions? Please submit the Info Request Form here 7 days a week for assistance.