Conventional Loans Available with 3% Down Payment. The minimum down payment for conventional mortgage loans is now 3%. FHA Reduces Annual Mortgage Insurance, 2017, the annual FHA mortgage insurance is lowering to 0.60% from 0.85% for most FHA loans.
The minimum down payment is 5% with conventional loans. Although, Fannie Mae offers a 3% down payment program called Conventional 97 . This program is only available to first time home buyers, or in the case of joint applicants (i.e. husband and wife, partner/partner, etc.), one of the applicants must be a first time home buyer.
If you are not eligible for the low down payment scenario because the loan is over the maximum conventional loan requirements, you will likely need to put 10 to 20 percent down.
Loans sold to Fannie Mae and Freddie Mac require a minimum 5% down payment. A conventional loan requires a 20% down payment in order.