What a Conventional 97 Loan Is
The Conventional 97 program lets qualified buyers purchase with 3% down on a conventional loan. Unlike FHA, its mortgage insurance can be cancelled at 20% equity, which can make it more cost-effective over time for buyers with solid credit.
Who It's For
- First-time and repeat buyers with limited down-payment savings
- Borrowers with good credit avoiding FHA mortgage insurance
- Buyers who plan to build equity and cancel PMI later
- Those wanting a conventional loan with a low entry point
How It Works
You put 3% down and finance 97%. PMI applies until you reach 20% equity, then it can be cancelled — a key advantage over FHA, where insurance often lasts the loan's life. Credit and income follow conventional standards.
Frequently Asked Questions
Can I really buy with just 3% down?
Yes, if you qualify. Conventional 97 allows a 3% down payment for eligible buyers, with PMI until you reach 20% equity.
How is this different from FHA?
Conventional 97's mortgage insurance can be cancelled at 20% equity; FHA insurance often lasts the loan's life. For buyers with good credit, Conventional 97 can cost less over time.
Do I need to be a first-time buyer?
Not necessarily — repeat buyers can qualify too, though some terms favor first-time buyers. We can confirm your eligibility.