What are conventional loans that only require 3% to 5% down?

Conventional loans backed by Fannie Mae and Freddie Mac allow first-time and repeat buyers to put down as little as 3%–5%. Programs like HomeReady and Home Possible target lower- and moderate-income buyers with 3% down and reduced PMI, while standard conventional loans often start at 5%. You'll pay private mortgage insurance until you reach 20% equity, but PMI on conventional loans automatically cancels at 78% loan-to-value and you can request removal at 80% — unlike FHA, where mortgage insurance often lasts the life of the loan. Conventional loans generally need a credit score around 620 or higher, and a stronger score lowers both your rate and PMI cost. These loans are a strong option if your credit is decent and you don't want permanent mortgage insurance. Compare options at wealthserene.com/tools/loan-program-finder.