Conventional 97 Loan: 3% Down Payment

Conventional loans require anywhere from 3-5% down-payment depending on the specific program. Fannie Mae and Freddie Mac both offer a first time home buyer program which will allow only 3% down for qualified borrowers and USA Mortgage will be granting 2% of that which will make it more affordable for first time home buyers.

3% Down Payment Mortgage in Missouri, Arkansas, Illinois, and Kansas.

Characteristics of 3% Down Mortgage


There are income limits per average median income of counties.

Borrowers don’t have to be first-time homebuyers.

Properties must be owner-occupied.

Borrowers can’t own any other property.


3% Down Payment Mortgage

Conventional loans will have PMI if there is less than 20% downpayment/equity. There are no up-front fees added to the loan and the PMI varies based on credit scores, the amount of down-payment and other factors. Buyers will have options of doing the monthly PMI or buying up-front via lender paid MI or borrower paid MI. Plus 3% down payment program needs Homeowner education.


USA Mortgage Advantage

Full-service Lender serving Missouri and surrounding states.

In-house processing, underwriting and funding.

Accepts some lower and no credit scores for these loans.

Offers competitive mortgage rates and fees.


Apply for 3% Down Mortgage

USA Mortgage Columbia regional office has many locations in Missouri, Arkansas, Illinois, Kansas, and nearby areas. We have all the resources needed to make your dream a reality. Are you ready to move forward with your next home purchase? A local mortgage loan originator will guide you every step of the way. Apply now and find out if you qualify for a 3% down payment conventional loan.


FAQs: Conventional 97 Loan

What are the Conventional 97 loan requirements?

While there are various requirements for a Conventional 97% loan the main requirement is you are a qualifying first-time homebuyer, or you can also qualify if you’re under certain income limits or you are applying with someone who is a first-time home buyer. Contact one of our loan specialists to go over all the requirements for a Conventional 97 loan.

How to get a 3% down payment mortgage?

Applying through a mortgage lender that offers the Conventional 97% loan along with meeting the requirements to qualify.

Who qualifies for a 3% down mortgage?

First time homebuyers who homebuyers or are under certain income limits could qualify with a credit score as low as 620! Contact one of our loan specialists to see if you qualify for a Conventional 97% loan.