Conventional Loans Requirements

It’s possible for first-time home buyers to get a conventional mortgage with a down payment as low as 3%. 

However, the down payment requirement can vary based on your personal situation and the type of loan or property you’re getting:

• If you’re not a first-time home buyer or making no more than 80% of the median income in your area, the down payment requirement is 5%.
• If the house you’re buying is not a single-family home (i.e., it has more than one unit), you may need to put down 15%.
• If you’re buying a second home, you’ll need to put at least 10% down.
• If you’re getting an adjustable-rate mortgage, the minimum down payment requirement is 5%.

If you’re refinancing a conventional loan, you’ll need more than 3% equity. In all cases, you’ll need at least 5% equity. If you’re doing a cash-out refinance, you’ll need to leave at least 20% equity in the home.

Our mortgage calculator can help you figure out how your down payment amount will affect your future monthly payments.