Guidelines & Requirements 2025
What is the standard 97 loan program?
The Conventional 97 program enables property buyers to get a conventional mortgage loan with only 3% down.
The program is named for the 97% of the home worth that is funded by the lender after the purchaser makes a 3% deposit.
The loan program can fund a single-family home or condominium unit - as long as the purchaser plans to utilize the home as a primary house.
Conventional 97 uses an alternative to FHA loans, which require a comparable 3.5% down payment.
In this article:
Conventional 97 loan standards
Credit rating requirements
Conventional 97 mortgage rates
Conventional 97 vs FHA and other loan types
Conventional 97 loan FAQ
How to get a Conventional 97 Loan
2025 conventional 97 standards
Aside from needing just 3% down, Conventional 97 loans work a lot like other conventional mortgage loans.
But this loan program works only for newbie home purchasers - specified as buyers who have not owned a home in the previous three years. For borrowers looking for a low down payment mortgage, it can be an excellent mortgage alternative.
Here are some other Conventional 97 loan certifications:
- The loan should be a fixed-rate mortgage
- The residential or commercial property needs to be a one-unit single-family home, co-op, PUD, or apartment
- A minimum of one purchaser must not have actually owned a home in the last three years
- The residential or commercial property needs to be the owner's main home
- A minimum of one borrower should take a homebuyer education course
- The loan amount need to be at or listed below $806,500
These functions line up well with the common first-time homebuyer's profile.
For instance, a lot of buyers today are searching for a one-unit home - as opposed to a duplex or triplex - or a condo that they plan to live in as their main house.
What is the standard 97 loan program?
The Conventional 97 program enables property buyers to get a conventional mortgage loan with only 3% down.
The program is named for the 97% of the home worth that is funded by the lender after the purchaser makes a 3% deposit.
The loan program can fund a single-family home or condominium unit - as long as the purchaser plans to utilize the home as a primary house.
Conventional 97 uses an alternative to FHA loans, which require a comparable 3.5% down payment.
In this article:
Conventional 97 loan standards
Credit rating requirements
Conventional 97 mortgage rates
Conventional 97 vs FHA and other loan types
Conventional 97 loan FAQ
How to get a Conventional 97 Loan
2025 conventional 97 standards
Aside from needing just 3% down, Conventional 97 loans work a lot like other conventional mortgage loans.
But this loan program works only for newbie home purchasers - specified as buyers who have not owned a home in the previous three years. For borrowers looking for a low down payment mortgage, it can be an excellent mortgage alternative.
Here are some other Conventional 97 loan certifications:
- The loan should be a fixed-rate mortgage
- The residential or commercial property needs to be a one-unit single-family home, co-op, PUD, or apartment
- A minimum of one purchaser must not have actually owned a home in the last three years
- The residential or commercial property needs to be the owner's main home
- A minimum of one borrower should take a homebuyer education course
- The loan amount need to be at or listed below $806,500
These functions line up well with the common first-time homebuyer's profile.
For instance, a lot of buyers today are searching for a one-unit home - as opposed to a duplex or triplex - or a condo that they plan to live in as their main house.