Down Payments As Low As 3%
Some qualifying conventional programs permit down payments as low as 3%. Availability and eligibility requirements vary by program and borrower profile.
Conventional Home Loans
A flexible mortgage option for many kinds of buyers.
Conventional mortgages are not insured or guaranteed by a federal government program. They include conforming loans that follow Fannie Mae or Freddie Mac guidelines and can offer competitive financing for qualified borrowers.
Low Down Payment OptionsSome qualifying programs start at 3% down
PMI Can Be TemporaryCancellation may be possible when requirements are met
Missouri & KansasLocal mortgage guidance
Why Consider Conventional
Conventional financing can offer flexibility without tying your mortgage to a government loan program.
Conventional loans are among the most common mortgage options. Depending on the loan program, property, down payment and borrower qualifications, they can work for first-time buyers, repeat buyers and a variety of occupancy types.
Private Mortgage Insurance
When a conventional borrower puts less than 20% down, private mortgage insurance is typically required. PMI may later be cancellable when applicable requirements are met.
Broad Property Options
Depending on the program and underwriting requirements, conventional financing may be available for primary residences, second homes and investment properties.
Conforming Loan Options
Many conventional mortgages are conforming loans designed to meet Fannie Mae or Freddie Mac standards, including applicable county loan limits.
Conventional Loan Quote
Tell us about your home purchase.
Complete the form so Juncture Mortgage can better understand your purchase plans, budget and financing needs before following up about conventional loan options.
Your down payment can affect your options.
A larger down payment may reduce your loan-to-value ratio, while qualifying low-down-payment programs may allow you to purchase with less cash upfront.
PMI is not necessarily permanent.
Conventional PMI may be cancellable under applicable federal law, investor rules and servicer requirements once sufficient equity and other conditions are met.
A quote is not a pre-approval.
If you are ready to make an offer, complete the full pre-approval process separately.
Conventional Purchase Loan Quote
Request your conventional loan quote
Tell us a little about yourself and the home you are looking to purchase.
Understanding PMI
Putting less than 20% down does not automatically rule out conventional financing.
Private mortgage insurance, or PMI, is commonly required on conventional loans when the down payment is less than 20%. PMI protects the lender rather than the borrower, but it can make a lower-down-payment conventional purchase possible. Unlike FHA mortgage insurance, conventional PMI may be cancellable when applicable equity and other requirements are met.
3% Down May Be AvailableSome qualifying conventional programs permit up to 97% loan-to-value financing on eligible transactions.
20% Is Not Always RequiredMany conventional borrowers purchase with less than 20% down and pay PMI when required.
PMI May Be CancellableBorrowers may have rights to request or receive cancellation once applicable equity, payment-history and other requirements are satisfied.
Conventional Loan FAQ
Common questions about conventional purchase loans.
What is a conventional mortgage?
A conventional mortgage is a home loan that is not part of a specific federal government mortgage program such as FHA, VA or USDA.
Do I need 20% down?
No. Some conventional programs permit qualifying borrowers to purchase with as little as 3% down. With less than 20% down, PMI is typically required.
What is PMI?
Private mortgage insurance protects the lender if a borrower defaults. It is commonly required on conventional mortgages with less than 20% down and may be cancellable when certain conditions are met.
Is conventional financing only for first-time buyers?
No. Conventional loans can be used by both first-time and repeat buyers, subject to the requirements of the particular loan program.
Can conventional loans finance second homes or investment properties?
Some conventional programs allow second-home and investment-property financing, although down-payment, reserve and underwriting requirements may differ from primary-residence loans.
What is a conforming loan?
A conforming loan is a conventional mortgage that meets applicable Fannie Mae or Freddie Mac standards, including loan limits set for the county where the property is located.
Could conventional financing fit your next home purchase?
Request a conventional loan quote or start the pre-approval process so we can review your down payment, credit profile, purchase plans and available financing options.