97% LTV Conventional Purchase
Most PopularBest For: First Time Homebuyers, Low Down Payments
The popular 97% LTV Purchase Program from Fannie Mae helps first time homebuyers by allowing for down payments as low as 3%.
Program Description
The 97% loan-to-value (LTV) financing option from Fannie Mae is a popular program for first-time home buyers who would otherwise qualify for a mortgage, if it weren't for the lack resources for a larger down payment. With as little as 3% down, borrowers can take advantage of the benefits of a conventional loan and cancellable mortgage insurance.
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97% LTV Conventional Purchase
Min. Credit Score
620
Min. Down Payment
3%
Max Loan Amount
$766,550
Qualification variables shown here are for 1-Unit Primary Residences, and loan amount ranges vary based on US County. Register Now to see if this loan program is a good fit for you, find your county limits, and find more options for purchasing a home.
Pros & Cons
- Down payments as low as 3%
- No income or purchase price limits
- No funding fee or permanent mortgage insurance
- No high-balance loan program available in high-cost areas
- Only available for 1-unit primary residences
- Not available for manufactured homes
Program Availability
97% LTV Conventional Purchases are available in all 50 states, Washington D.C., Puerto Rico, and the U.S. Virgin Islands.
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“Ready to purchase your first home, but don't have the funds for larger down payments AND closing costs? This Fannie Mae mortgage option may help you keep that money in the bank!"
Occupancy & Property Types
Qualification factors for this program can vary based on how you intend to occupy the property and what type of property you are purchasing. By registering for a free account , you can check program limits for all property and occupancy types.
Occupancy Types
Available Property Types for Primary Residence
Income & Purchase Price Limits
Your Debt-to-Income Ratio (DTI), as well as purchase price and income limits, are important factors when qualifying for a home loan program. By registering for a free account , you can find the exact program limits for this program and others in your area and for your unique scenario.
Debt-to-Income Limit
45.00%
Purchase Price Limit
No Limits
Income Limit
No Limits
Qualification variables shown here are for 1-Unit Primary Residences, and loan limit ranges vary based on US County. Amounts may be rounded. Exact amounts can be accessed by registering for a free account.
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Key Features
- Specifically designed for first-time homebuyers with small down payments
- All borrowers must occupy the property as their primary residence
Additional Conditions
- At least one borrower must be a first-time home buyer
- If all occupying borrowers are first-time homebuyers, then at least one borrower is required to take homeownership education from a qualified provider
Other Limitations
In some circumstances, there are specific requirements you must meet or homebuyer education courses you must attend in order to be eligible for the loan program.
No other program limitations
A Homebuyer Education Class may be required for this loan program.
Class Name: Fannie Mae's HomeView™
If all borrowers on the loan are first-time homebuyers, at least one of them will need to take a homeownership education class (Fannie Mae's HomeView™ class can satisfy this requirement).
Mortgage Insurance & Fees
Most mortgage programs require mortgage insurance when you are financing more than 80% of the purchase price or appraised value. Some programs may also have an associated funding fee, paid at the time of closing, or an annual fee. Learn all about the different fees here.
Required with less than 20% Down Payment
Type: Private Mortgage Insurance (PMI)This program requires Private Mortgage Insurance (PMI) if you are putting down less than 20% on the home you are purchasing or refinancing.
Type: No Funding Fee
This program does not have a funding fee.
Type: No Annual Fee
This program does not have an annual fee.
Estimated Closing Costs: 2.5%
These amounts are just an estimate. Your closing costs include things like loan origination fees, discount points, appraisal fees, title insurance, taxes, deed recording fees, and other charges.
Similar Loan Programs
If you think this home loan program may be a good fit for you, you may also want to check out the following programs that share many similarities with the current program.
HomeReady® Purchase Loan
Best For: First Time Homebuyers, Low Down Payments
Competitive pricing, affordable mortgage insurance and flexible qualification for buying a home with limited income and funds.
Related Resources
Knowing Your Mortgage Insurance Options (Conventional Loan PMI)
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First Time Homebuyer Guide
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Tips for a Simple Loan Approval
Believe it or not, following these simple tips can not only make or break your home buying experience, but it can also either save or cost you valuable time and money. If you aren’t completely sure if something you’re planning to do will help or hurt the status of your loan approval, you should always contact your loan officer to advise before you act.
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A Rundown On Closing Costs and How They Affect You
It can be tricky to sift through all the figures , so we broke down what they are, how much they cost, who's responsible and how to minimize your expenses.
Read MoreVisit our Mortgage Education Center for more resources.
* Some loan programs may not be offered by all featured lenders of ReviewMyMortgage.com and qualification guidelines may vary between them. Our team makes their best effort to keep loan program information up to date. Loan programs may change without warning. ReviewMyMortgage.com does not guarantee or offer any loan products. ReviewMyMortgage.com is strictly an educational resource hub for consumers
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