3% Down Conventional Loans

HomeReady and Home Possible programs let you buy with just 3% down — no FHA mortgage insurance and PMI cancels at 80% equity.

Key Features

• 3% down payment (97% LTV)
• HomeReady (Fannie Mae): income limits apply, extra credit for ADU income
• Home Possible (Freddie Mac): income limits apply, flexible sources
• PMI cancels at 80% LTV (unlike FHA MIP)
• No upfront mortgage insurance premium
• Income limits based on area median income
• Homebuyer education course required

Who Is This For?

• First-time buyers who want less than 5% down without FHA
• Moderate-income buyers who qualify under income limits
• Buyers who want PMI to cancel (FHA MIP is permanent)

Florida-Specific Considerations

• Florida income limits vary by county — check your area
• Combine with FL Hometown Heroes for closing cost assistance
• Lower total cost than FHA over the life of the loan (no permanent MIP)
• Ideal for Florida buyers just above FHA comfort zone