Down Payment Rates
3% Down Mortgage Rates - Live Wholesale Pricing
3% down is the floor for Conventional first-time buyers (HomeReady, Home Possible). FHA requires 3.5%. Both require mortgage insurance until the loan reaches 80% LTV.
Conventional Loan Facts
- Down payment as low as 3% for first-time homebuyers, 5% for others
- Down payment assistance programs available to fully cover the 3% down payment
- Private Mortgage Insurance (PMI) required below 80% LTV - automatically removed at 78%
- Maximum DTI typically 45%, up to 50% with strong compensating factors
- Minimum credit score generally 620; best rates at 740+
- Available for primary residence, second home, or investment property
- No upfront mortgage insurance premium - only monthly PMI if applicable
Down Payment by Home Price
3% down at common purchase prices:
| Home price | Down payment | Loan amount |
|---|---|---|
| $300,000 | $9,000 | $291,000 |
| $400,000 | $12,000 | $388,000 |
| $500,000 | $15,000 | $485,000 |
| $600,000 | $18,000 | $582,000 |
| $750,000 | $22,500 | $727,500 |
Frequently Asked Questions
Can I buy a house with 3% down?+
Yes. 3% down works for Conventional first-time buyer programs (Fannie HomeReady, Freddie Home Possible) and FHA 3.5%. VA and USDA require zero down if you qualify. The pricer above shows live rates across all options.
Is 3% down enough to avoid mortgage insurance?+
No - to avoid Conventional mortgage insurance you need at least 20% down (80% LTV). At 3% down, MI is required until the loan amortizes to 80% LTV (or, on owner-occupied loans, you request removal at 80% based on current value with a new appraisal).
What does 3% down on a $400,000 house look like?+
Down payment: $12,000. Loan amount: $388,000. LTV: 97%. The pricer above is preset to this scenario - see live rates in seconds.
Will my rate be higher with 3% down vs 20% down?+
Slightly. Conventional loans use risk-based pricing adjustments that include LTV. Each LTV bucket (95, 90, 85, 80) is a meaningful pricing step. The difference between 3% down and 20% down can be 0.125% to 0.5% in rate equivalent, depending on FICO. FHA is less LTV-sensitive in pricing.
Is FHA or Conventional better at 3% down?+
Often FHA at low FICOs (<700), often Conventional at higher FICOs (>720) because FHA's monthly mortgage insurance is not removable for the life of the loan unless you put 10%+ down. The pricer compares both side by side.
Is the $2,000 Best Price Guarantee available at 3% down?+
Yes. The Loan Factory $2,000 Best Price Guarantee applies to qualifying fixed-rate Conventional, FHA, and VA loans of $200,000+ regardless of down payment.
Apply with 3% down
Same-day Loan Estimate. Wholesale pricing, $2,000 guarantee on qualifying loans.
Start my application