Quick Answer: You can get a conventional loan with just 3% down through HomeReady or Home Possible programs. These require 620+ credit score, meet income limits, and complete homebuyer education. The biggest advantage? PMI can be removed at 20% equity, while FHA's MIP is permanent.
Low Down Payment, High Value
With 3% down conventional programs, you get all the benefits of conventional financing with minimal upfront cash. Better rates for good credit, removable PMI, and lower long-term costs.
Perfect for first-time buyers and anyone who wants to preserve cash while getting superior loan terms.
Why 3% Down Beats FHA 3.5%
3% Conventional
- ✓ Removable PMI at 20% equity
- ✓ No upfront fee
- ✓ Lower rates with good credit
- ✓ Less down required (3% vs 3.5%)
- ✓ Higher loan limits
FHA 3.5%
- ✗ Permanent MIP for life of loan
- ✗ 1.75% upfront fee added to loan
- ✗ Same rate regardless of credit
- ✗ More down required
- ✗ Lower loan limits
💰 Real Savings: $300,000 Purchase, 700 Credit
3% Conventional ($9,000)
Monthly PMI: ~$150
PMI drops: Year 8
Total PMI: ~$14,400
FHA 3.5% ($10,500)
Upfront MIP: $5,250
Monthly MIP: ~$216
Total MIP: ~$83,000
Savings: $68,000+ over 30 years!
Two Programs to Choose From
HomeReady
Fannie Mae Program
Key Features
- • 3% minimum down payment
- • 620 minimum credit score
- • Income limits apply
- • Homebuyer education required
Income Limits 2025:
Phoenix: ~$113,000
Tucson: ~$95,000
Home Possible
Freddie Mac Program
Key Features
- • 3% minimum down payment
- • 620 minimum credit score
- • Income limits apply
- • Homebuyer education required
Income Limits 2025:
Phoenix: ~$90,000
Tucson: ~$76,000
How to Qualify
Credit Score
620+
700+ for best rates
Down Payment
3%
$9,000 on $300k
Income Limit
Varies
By area
Education
Required
Complete online
Monthly Payment Example
$300,000 Purchase with 3% Down
Cash at Closing
~$12,000
PMI Drops After
7-8 Years
New Payment
$2,214
Common Questions
Can I really buy with only 3% down?
Yes! You'll need 3% down plus closing costs (2-3%). On a $300k home, expect $12,000-15,000 total.
Do I have to be a first-time buyer?
No! These programs don't require first-time buyer status.
How long does PMI last?
Typically 7-8 years, but can be removed sooner if your home appreciates or you make extra payments.
Ready to Buy with Just 3% Down?
Find out if you qualify for HomeReady or Home Possible
Get Pre-Approved
Know exactly how much you can borrow
Verify Income Limits
We'll check if you qualify for your area
Calculate Savings
See how much you'll save vs FHA