Conventional 97 (3% Down)
A conventional loan that lets qualified first-time buyers put down just 3%. Unlike FHA, the mortgage insurance drops off once you build enough equity.
- Down payment
- 3% down for many first-time buyers.
- Credit context
- Usually needs a credit score around 620 or higher. Private mortgage insurance applies below 20% down and cancels once you reach about 20% equity.
- Income rules
- No income limit on the standard version. Credit, down payment, and debt-to-income drive approval.
Individual lenders set the interest rate, fees, mortgage-insurance treatment, and final approval requirements. Compare written Loan Estimates before choosing.
How repayment works
Your monthly housing payment usually includes principal and interest, and may also include property taxes, homeowners insurance, mortgage insurance, and association fees. Your lender’s written Loan Estimate and Closing Disclosure control the actual costs and terms.
A lower advertised down payment does not necessarily mean the lowest monthly payment or lowest total cost.
Who it may fit
- Households balancing two credit profiles
- First-time buyers who want a clearer path
These are situations worth exploring, not a qualification decision.
What could rule it out
HomeBase does not yet have enough structured issuing-body rules to screen this loan reliably. Confirm credit, income, occupancy, property, and borrower requirements with the lender.
Costs and terms to confirm
- Cash needed
- 3% down for many first-time buyers.
- Credit
- Usually needs a credit score around 620 or higher. Private mortgage insurance applies below 20% down and cancels once you reach about 20% equity.
- Income
- No income limit on the standard version. Credit, down payment, and debt-to-income drive approval.
Ask each lender for the interest rate, annual percentage rate, lender fees, mortgage insurance, cash to close, and total payment using the same assumptions.
Can I combine this with assistance?
Conventional loans pair with assistance through "Community Seconds"-style rules
- Fannie Mae and Freddie Mac publish rules (Community Seconds / Affordable Seconds) under which a qualifying assistance second lien can sit behind a conventional first mortgage.
- The assistance program must meet those published criteria — most established government and nonprofit programs are structured to.
- Low-down-payment conventional options designed for first-time buyers (3%-down programs) commonly combine with assistance, subject to the lender's approval of the specific pairing.
Family gift funds: Gift funds from family are broadly allowed, with documentation requirements similar in spirit to FHA's.
Confirm: Whether a specific program is approved as a Community Second is a lender-and-program question — ask the program for its participating-lender list, and the lender which programs they close with.
Source: CFPB — Buying a House (conventional loan options). The lender and program administrator make the final decision for a specific pairing.