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How To Get a Mortgage With Just 3% Down in 2026
Yahoo Finance· 2026-02-14 14:00
Core Insights - Rising home prices have made traditional down payments a significant barrier to homeownership, with the median U.S. home price exceeding $400,000, necessitating an approximate $80,000 down payment for a 20% contribution [1] - Many buyers can qualify for conventional mortgages with as little as 3% down, making homeownership more accessible, as a 3% down payment on a $400,000 home amounts to $12,000 [2] Mortgage Options - A 3% down mortgage allows borrowers to finance up to 97% of a home's purchase price, differing from the traditional 80% limit, and is backed by Fannie Mae or Freddie Mac [3] - Borrowers typically need a solid credit profile, stable income, and sufficient cash reserves, although requirements can vary by lender [4] Specific Programs - The Conventional 97 program permits buyers to finance up to 97% of the purchase price, requiring at least one borrower to be a first-time homebuyer, defined as someone who has not owned a home in the past three years [6] - The HomeReady program also allows a 3% down payment without the first-time buyer requirement, but household income must generally be below 80% of the area median income, offering flexible income sourcing [8]