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Get a Conventional Loan With as Little as 3% Down
Compare 100+ lenders and find the conventional mortgage option that fits your down payment, income, credit profile, and long-term goals.
- Down payments as low as 3%
- Fixed & adjustable-rate options
- PMI can be removed when eligible
- First-time and repeat buyer options
- No impact on credit
- Takes 1 min
- No docs needed
3%
Minimum down payment
for qualifying borrowers
97%
Maximum financing
for qualifying borrowers
7–21
Days to close
for eligible loans
100+
Wholesale lenders shopped
for your scenario
3%
Minimum down payment
for qualifying borrowers
97%
Maximum financing
for qualifying borrowers
7–21
Days to close
for eligible loans
100+
Wholesale lenders shopped
for your scenario
Is a Conventional
Loan Right for You?
Conventional loans can be a strong option for buyers who want flexible financing, competitive mortgage terms, and the ability to remove private mortgage insurance as they build equity.
A conventional loan may be a good fit if you:
- want to put as little as 3% down
- have stable qualifying income
- want the option to remove PMI later
- are buying a primary residence, second home, or investment property
- want to compare fixed and adjustable-rate options
- want an alternative to FHA financing
500+ Reviews from
Conventional Loan Requirements
You don’t need to figure out every conventional guideline before getting pre-approved. Find out how much you qualify for today
500+ Reviews from
Conventional Loan Requirements
Down Payment
As little as 3% for eligible borrowers and qualifying primary-residence programs.
Credit Profile
Conventional underwriting considers your overall credit history, score, debt obligations, assets, and other risk factors.
Debt-to-Income Ratio
Your allowable DTI depends on the strength of your overall application and underwriting findings.
Income and Employment
Stable, verifiable qualifying income is generally required.
Cash to Close
You’ll need sufficient funds for your required down payment, closing costs, prepaid expenses, and any applicable reserves.
Mortgage Insurance
Private mortgage insurance is generally required when financing more than 80% of the property’s value. PMI may later be cancellable when eligibility requirements are met.
Property
Property eligibility depends on the conventional program, occupancy type, and underwriting requirements.
Loan Limits
Conforming loan limits apply to standard Fannie Mae and Freddie Mac conventional loans. Higher loan amounts may require jumbo financing.
You don’t need to figure out every conventional guideline before getting pre-approved. Find out how much you qualify for today
More Conventional Options. More Ways to Qualify.
Traditional Conventional
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BEST FOR: Qualified borrowers buying a primary, second, or investment property
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RATES: Fixed or adjustable
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PMI: May be removable
Conventional 97
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DOWN PAYMENT: As little as 3%
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BEST FOR: Qualifying first-time buyers
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PMI: Potentially cancellable
HomeOne®
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DOWN PAYMENT: 3%
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INCOME LIMIT: No HomeOne program limit
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BEST FOR: Qualifying first-time buyers
HomeReady®
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DOWN PAYMENT: As little as 3%
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INCOME LIMIT: Generally 80% AMI
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BEST FOR: Eligible lower-income buyers
Home Possible®
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DOWN PAYMENT: As little as 3%
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INCOME LIMIT: Generally 80% AMI
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BEST FOR: Eligible lower-income buyers
Fixed Rate or Adjustable Rate?
Choosing a conventional program is only part of the decision. You’ll also need to decide how you want your interest rate structured.
Fixed-Rate Conventional Loan
Your interest rate stays the same for the life of the loan, giving you predictable principal-and-interest payments.
Apply NowA fixed-rate mortgage may make sense if you:
- plan to keep the home long term
- value predictable payments
- don’t want your interest rate changing with the market
Adjustable-Rate Conventional Loan
An ARM provides an initial fixed-rate period before the interest rate becomes eligible to adjust.
Apply NowAn ARM mortgage may make sense if you:
- expect to move within several years
- plan to refinance before the adjustable period
- want to compare the available initial payment against a fixed-rate option
- are comfortable with future rate changes
Which 3% Down Conventional Program Is Right for You?
FEATURE
Conventional 97 & HomeOne
HomeReady & Home Possible
Minimum Down Payment
3%
3%
First-Time Buyer Requirement
Generally yes for purchase
Not always required
Mortgage Insurance
Typically required above 80% LTV
Reduced MI features available
Primary Residence
Required for applicable purchase transactions
Generally required
Income Limit
No program-specific AMI limit
Generally 80% AMI
Best For
First-time buyers with limited down payment
Eligible lower-income buyers
Why Choose a Conventional Loan?
Flexible financing with low down payment options, competitive rates, removable PMI, and more without the added requirements of a government-backed loan.
Get a free rate quotePut As Little As 3% Down
You don’t necessarily need a 20% down payment to get a conventional mortgage. Certain conventional programs allow qualified borrowers to finance up to 97% of a home’s value, meaning you may be able to purchase with just 3% down.
Your Mortgage Insurance Doesn’t Have to Last Forever
If your conventional loan requires private mortgage insurance, or PMI, you may be able to request its cancellation once you meet applicable equity and payment-history requirements. That’s different from some government-backed mortgage insurance structures that may remain in place much longer.
Choose Between Fixed and Adjustable Rates
Conventional financing isn’t limited to one rate structure. Depending on your goals, you may choose a fixed-rate mortgage for long-term payment stability or an adjustable-rate mortgage with an initial fixed period followed by potential rate adjustments.
More Flexibility for Different Property Types
Conventional financing can potentially be used for more than a primary residence. Depending on the program and your qualifications, conventional loans may also be available for primary residences, second homes, investment properties, single-family homes, condominiums, and certain multi-unit properties. Eligibility and down-payment requirements vary by property and occupancy type.
Options for First-Time and Repeat Buyers
Some low-down-payment conventional programs are specifically designed for first-time homebuyers, while others don’t require you to be purchasing your first home. That means being a repeat buyer doesn’t automatically rule out low-down-payment conventional financing.
Put As Little As 3% Down
You don’t necessarily need a 20% down payment to get a conventional mortgage. Certain conventional programs allow qualified borrowers to finance up to 97% of a home’s value, meaning you may be able to purchase with just 3% down.
Mortgage Insurance Doesn’t have to Last Forever
If your conventional loan requires private mortgage insurance, or PMI, you may be able to request its cancellation once you meet applicable equity and payment-history requirements. That’s different from some government-backed mortgage insurance structures that may remain in place much longer.
Choose Between Fixed and Adjustable Rates
Conventional financing isn’t limited to one rate structure. Depending on your goals, you may choose a fixed-rate mortgage for long-term payment stability or an adjustable-rate mortgage with an initial fixed period followed by potential rate adjustments.
More Flexibility for Different Property Types
Conventional financing can potentially be used for more than a primary residence. Depending on the program and your qualifications, conventional loans may also be available for primary residences, second homes, investment properties, single-family homes, condominiums, and certain multi-unit properties. Eligibility and down-payment requirements vary by property and occupancy type.
Options for First-Time and Repeat Buyers
Some low-down-payment conventional programs are specifically designed for first-time homebuyers, while others don’t require you to be purchasing your first home. That means being a repeat buyer doesn’t automatically rule out low-down-payment conventional financing.
A Better Conventional Loan Experience
More Options. More Ways to Get to Yes.
Getting a conventional loan isn’t only about meeting minimum guidelines. The lender reviewing your file matters too.
Get a rate quoteShop 100+ Lenders
You're not limited to one bank's pricing or one set of lending options.
In-House Underwriting
Your file is reviewed by an underwriting team we can work with directly instead of being passed between outside companies.
More Ways to Structure the Loan
From Conventional 97, HomeOne, HomeReady and Home Possible to fixed and adjustable-rate structures, we compare more than one path before deciding which works best.
Dedicated Loan Officer
You have one person who knows your scenario and stays involved from pre-approval through closing.
Austin Capital Mortgage vs. Other Lenders
A better conventional loan experience starts with better support, broader options and fewer delays. See how Austin Capital Mortgage compares.
Other lenders/Banks
Other
Lenders shopped
100+
Limited to 1
Conventional loan options
Multiple
Limited
3% down programs
Yes
May be limited
Fixed & ARM options
Yes
Yes
Non-QM alternatives
Yes
Limited
Fast-track underwriting
Yes
Varies
Closing time
7–21 days*
Often longer
Dedicated Loan Officer
Yes
Varies
Availability
7 days a week
Limited
Average response time
<1 hour
Varies
How the Conventional Loan Process Works
Get Free Rate Quote
Get Pre-Approved
Make Your Offer
Complete Underwriting
Close on Your Home
Today's Live Conventional Rates
See live lender rates from 100+ wholesale lenders. Customize your details to compare conventional mortgage options based on your purchase price, down payment, credit profile, and loan structure.
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30 years of 5-star mortgage service
For over 30 years, we’ve built our reputation on excellent service and a mortgage experience that puts borrowers first.
Conventional Loan FAQs
What is a conventional loan?
A conventional mortgage is a home loan that isn't insured or guaranteed by a government agency such as the FHA, VA, or USDA. Many conventional mortgages follow guidelines established by Fannie Mae or Freddie Mac.
How much do I need to put down on a conventional loan?
Qualified borrowers may be able to purchase with as little as 3% down through eligible conventional programs. Your actual minimum depends on the loan program, occupancy, property, and borrower qualifications.
Do I need 20% down for a conventional loan?
No. A 20% down payment may allow you to avoid private mortgage insurance, but it isn't required for every conventional mortgage. Some eligible programs allow as little as 3% down.
What credit score do I need for a conventional loan?
There isn't one credit-score number that applies to every conventional loan. Your eligibility depends on the program, underwriting method, credit history, income, assets, debts, and overall financial profile.
What is the difference between Conventional 97, HomeOne, HomeReady and Home Possible?
All can provide low-down-payment conventional financing, but they have different eligibility requirements. Conventional 97 and HomeOne are particularly relevant for qualifying first-time buyers. HomeReady and Home Possible are designed for qualifying borrowers within applicable income limits. We'll compare the programs you're eligible for rather than expecting you to choose one yourself.
Can I remove PMI from a conventional loan?
Potentially, yes. Conventional PMI may generally be requested for cancellation once applicable equity, payment-history, and other requirements are met. Automatic termination rules can also apply.
Is a conventional loan better than FHA?
It depends on your scenario. Conventional financing may be attractive for borrowers who want potentially cancellable PMI, broader property options, or strong conventional pricing. FHA may offer more flexibility for some borrowers with lower credit scores or different qualification needs. Comparing both is often the best way to make the decision.
Can a first-time homebuyer get a conventional loan?
Yes. Several conventional programs are specifically designed to help first-time buyers, including Conventional 97 and Freddie Mac HomeOne. Eligible borrowers may be able to purchase with as little as 3% down.
Can I use a conventional loan for an investment property?
Yes, conventional financing can be available for eligible investment properties. However, the 3% down programs described above are generally designed for qualifying primary residences. Investment-property down payments and underwriting requirements are different.
Can self-employed borrowers qualify for a conventional mortgage?
Yes. Self-employed borrowers can qualify for conventional financing when their income can be documented and meets applicable underwriting requirements. If traditional income documentation doesn't work for your situation, Austin Capital Mortgage can also compare alternative mortgage programs.
Start Your Pre-Approval
Start your pre-approval to view live rates and see which conventional mortgage options you may qualify for.
- No impact on credit
- Takes 1 min
- No docs needed
