Conventional 97 Loan
“I want a low down payment loan that's not backed by the FHA.”
The Conventional 97 loan lets qualified buyers purchase with just 3% down — a low-down-payment conventional option that isn't backed by the FHA, so mortgage insurance can be canceled once you reach 20% equity.
What Is a Conventional 97 Loan?
Conventional 97 is a conventional mortgage that allows a down payment as low as 3% of the purchase price. Unlike an FHA loan, it isn't government-insured, which means your private mortgage insurance can be removed once you build 20% equity — potentially lowering your long-term cost.
It's a strong fit for buyers with solid credit who want to keep their upfront cash low.
Who a Conventional 97 Loan Is Right For
- First-time and repeat buyers with good credit
- Buyers who want just 3% down
- Those who prefer a conventional loan over FHA
- Borrowers who want the option to cancel mortgage insurance later
- Buyers keeping upfront costs low
Frequently Asked Questions
How is Conventional 97 different from FHA?
Both allow low down payments, but Conventional 97 isn't FHA-insured, so its private mortgage insurance can be canceled at 20% equity — whereas FHA mortgage insurance often lasts the life of the loan.
What credit score do I need?
Conventional 97 generally requires good credit. Your loan officer can review your profile and confirm eligibility.
Explore other loan programs
Let’s talk numbers.
Talk to a Dream Team loan officer about the Conventional 97 and find out if it’s your best option.
ALCOVA Mortgage, LLC — NMLS #40508 (www.nmlsconsumeraccess.org). Equal Housing Lender. Informational only; not a commitment to lend. All loans subject to underwriting approval.