Buy a Townhome with Just 3% Down Using a Conventional Loan
- By Jim Blackburn
- on
Client Profile
- Name: Emily R.
- Age: 28
- Profession: Graphic Designer
- Location: Raleigh, NC
- Income: $68,000/year
- Credit Score: 720
- Home Type: Townhome
- Purchase Price: $290,000
- Loan Type: Conventional 97 (3% down)
- Down Payment: $8,700
The Challenge
Emily was tired of paying $1,700/month in rent and wanted to build equity. She assumed she’d need 10–20% down to buy a home, but with student loans and living expenses, she hadn’t saved much. She also didn’t want to pay monthly mortgage insurance for the rest of her loan term.
The Strategy
We helped Emily qualify for a Conventional 97 Loan—a first-time homebuyer program that requires just 3% down and offers competitive rates.
Key benefits:
- Low down payment (gifted from parents)
- Monthly mortgage insurance was temporary, unlike FHA
- Seller covered 2% of closing costs
- Locked in a competitive fixed rate at 6.375%
The Outcome
- Emily moved into her own 2-bed, 2.5-bath townhome
- Her total payment was $142/month less than her rent
- She’s now building equity, and plans to refinance into a no-MI loan in 3 years
- She now refers friends to “stop renting and start building wealth”
Quote from Emily:
“I always thought buying a home meant 20% down. I’m glad I asked the question—this loan made it real for me.”
Ready to Take Your First Step?
Skip the guesswork. Take our quick Discovery Quiz to uncover your top financial priorities, so we can guide you toward the wealth-building strategies that fit your life.
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