Updated almost 5 years ago on . Most recent reply
Conventional mortgage for 3% down ?
I've recently spoke with a loan officer from a local mortgage company in my market and explained to him that I wanted to get pre approved for a FHA loan. He asked me why I wanted to go with FHA instead of conventional since everything on my finances and credit checks out good and I told him that I wanted to pay as little as down payment as I can, and with conventional you need on the average of 20%-25% of down payment. So he informed me that I can get a conventional loan for low as 3% down. I never heard of a conventional mortgage that only requires 3% down. This will be my first property I buy and I'm planning to house hack for a year Than repeat. Any answers would be appreciated thanks.
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Yes, some lenders can do 97% conventional financing if the property meets their criteria- I know of a lender in my area too. It just depends on what loan products they lend on. Typically, lenders will do conventional with 5% and up at most major banks.