Question 1

How little can I put down on a conventional loan?

Accepted Answer

As little as 3% through Conventional 97, HomeReady (Fannie Mae), or Home Possible (Freddie Mac), or 5% on a standard conventional loan. HomeReady and Home Possible are built for low-to-moderate-income buyers and often price better, but they have income limits. We'll check which one you qualify for and which is actually cheaper.

Question 2

What's the difference between HomeReady, Home Possible, and Conventional 97?

Accepted Answer

All three let qualifying buyers put down 3%. HomeReady (Fannie Mae) and Home Possible (Freddie Mac) are income-based programs that usually come with reduced mortgage insurance and better pricing when your income is at or below the area limit. Conventional 97 is the fallback 3%-down option when your income is too high for those. We run all three and show you the lowest payment.

Question 3

When does the PMI come off a conventional loan?

Accepted Answer

It isn't permanent. Conventional mortgage insurance automatically ends once your balance reaches about 78% of the original value, and you can usually request removal earlier at around 20% equity. That's a key difference from FHA, where the mortgage insurance often stays for the life of the loan.

Question 4

What credit score do I need for a conventional loan?

Accepted Answer

Most conventional approvals start in the low-to-mid 600s, and stronger credit earns a better rate and lower PMI. If your score isn't there yet, an FHA loan may fit better for now — we'll compare both honestly instead of forcing one.

Question 5

What property types can I buy with a conventional loan?

Accepted Answer

Conventional financing is flexible: single-family homes, warrantable condominiums, townhomes and PUDs, and 2–4 unit buildings where you live in one unit. Second homes and investment properties qualify too, usually with a larger down payment. Condos need to be warrantable (the HOA and building have to meet guidelines), and manufactured homes are possible through specific programs. We'll confirm what the lender will approve for the exact property before you write an offer.

Today's sample conventional loan rates