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What is a conventional 97 home loan?

The program is named for the 97% of the home value that is financed by the lender after the buyer makes a 3% down payment. The loan program can finance a single-family home or condo unit — as long as the buyer plans to use the home as a primary residence. Conventional 97 offers an alternative to FHA loans, which require a similar 3.5% down payment.

What types of lenders offer conventional 97 loans?

Different types of lenders offer Conventional 97 loans. These include banks and credit unions, mortgage companies, mortgage brokers, and online lenders. In addition to this loan, some lenders offer other 3% down conventional programs like HomeReady and Home Possible.

What is the difference between a conventional 97 and FHA loan?

Both Conventional 97 mortgages and FHA loans make it easier for people to buy a home without a large down payment. The Conventional 97 home loan requires a 3% down payment, and you’ll need a minimum 3.5% down for an FHA loan. Here are some other differences.

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