Mortgage Navigator • Conventional • 3% Down

3% down conventional is not one program.

Fannie Mae and Freddie Mac each have multiple 97% LTV pathways. Choosing the right one depends on first-time-buyer status, income, property and other eligibility rules—not simply the down payment.

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Fannie Mae

Fannie offers eligible 97% LTV purchase executions through its standard 97% option and HomeReady. The exact first-time-buyer, income and transaction requirements depend on the path used.

Freddie Mac

Freddie offers HomeOne and Home Possible 97% LTV pathways. HomeOne is designed around eligible first-time-homebuyer purchase transactions, while Home Possible is its income-limited affordable offering.

Agency Difference: don't use “3% down conventional” as though it identifies the program. Fannie standard 97%, HomeReady, Freddie HomeOne and Home Possible have distinct eligibility rules.
Credit reminder: 97% LTV does not by itself create a blanket 620 agency minimum on an AUS-approved Fannie/Freddie loan. The file must receive the required AUS result and meet product, MI and lender requirements.

Official sources

Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide · FHFA Conforming Loan Limits

Agency guides control over summaries. Lender and mortgage-insurer overlays can be more restrictive.