Conventional 97 Down Payment Calculator 2027

Calculate Conventional 97 loan: 3% down payment, no first-time-buyer requirement, PMI required. Compare with FHA 3.5% and standard 5% down for 2027 home purchase.

Conventional 97 Eligibility

Requires 620+ FICO. Must occupy as primary residence. Loan limit capped at conforming ($766,550 baseline 2027). At least one borrower with no homeownership in past 3 years OR completed homeownership education.

Conv 97 vs FHA Differences

Conv 97 PMI cancels at 80% LTV automatically. FHA MIP usually lasts entire loan (with 3.5% down). FHA accepts lower credit (580). Conv 97 needs cleaner credit but cheaper long-term.

PMI Cancellation

By Homeowners Protection Act, lender MUST cancel PMI at 78% LTV (based on original value). At 80% you can REQUEST cancellation. Improvements + appraisal can accelerate.

Closing Cost Difference

Conv 97 closing costs 2-3% of loan. FHA adds 1.75% upfront MIP. VA has funding fee 2.15-3.6%. Compare APRs not just rates.

Source: fanniemae.com HomeReady, freddiemac.com Home Possible. Last updated: May 2026.

Frequently Asked Questions

Is Conv 97 first-time-only?

No. The earlier 97% LTV programs were FTB-only but HomeReady/Home Possible now accept repeat buyers with ownership gap or low income.

What's the income cap?

HomeReady: 80% of area median income (AMI). Home Possible: also 80% AMI. Some markets have no income cap. Check Fannie/Freddie eligibility lookup.

Can I use gift funds?

Yes. 100% of down payment can be gift. Lender requires gift letter showing no repayment expected.