What Is The Conventional 97 Mortgage Loan?
The Conventional 97 is a three-percent down payment mortgage loan for first-time home buyers. It's backed by Fannie Mae.
To use the Conventional 97 as a first-time buyer, you must meet three criteria:
- Your credit score must be above average
- You must purchase a detached home or a condo
- You must use a fixed-rate mortgage for financing
Your down payment can come from savings or a retirement fund or it can be a cash gift for down payment from a family member.
The Conventional 97 isn't the only low-down payment mortgage for first-time buyers. It's best for buyers with steady household income, and strong credit.
There are no interest rate discounts with the Conventional 97, and no subsidies for private mortgage insurance costs, either. However, as compared to other low-down payment loans, the Conventional 97 can be least expensive.
Ask us your question about qualifying to use a three-percent down payment in the chatbox. We're here to help.