Ogden Mortgage Loans offers first time home buyer loans for 3% down payment (97% LTV) conventional mortgage loans to Utah home buyers with as little as 3% down payment.

The 3% down conventional mortgage loans are:

  1. Fannie Mae – HomeReady 3% Down (Fannie Mae HomeReady Mortgage)
  2. Freddie Mac – HomeOne Mortgage & Home Possible 3% Down

What is the Fanie Mae HomeReady mortgage?

This is a program that requires 3% down. It has flexibilities built in, such using income from non-borrowing household members to qualify.

What is the Freddie Mac Home Possible Mortgage program?

This is Freddie Mac’s 3% down home buying program. It is a lot like the HomeReady program. Borrowers must not make more than set income limits, and it is for first-time homebuyers purchasing a primary residence.

97% LTV overview

The 97% loan-to-value (LTV) purchase program allows homebuyers to purchase a single family home, condo, co-op, or PUD without coming up with a full 5% down payment, that’s lower than FHA 3.5% down payment requirement.

Conventional 97% LTV Home Buying

The 3% down loan is similar to conventional loan programs.

Three 3% down loans have the following characteristics:

  • Fixed rate mortgage loan (No ARM’s allowed).
  • One-unit (single family property/home), co-op, PUD, or condo.
  • At least one buyer has not owned a home in the last three years.
  • The home Must be the owner’s primary residence
  • The loan amount is the conventional loan limit or lower.

These features typical for first-time homebuyers.  For example, most buyers today are looking for a one-unit home (as opposed to a duplex or triplex), or a condo that they plan to live in as their primary residence.

According to the National Association of Realtors, today’s average home price is around $250,000, putting most homes nationwide in reach with just a 3% down payment.

Apply for the 3% down Mortgage
97% LTV Home Purchase Q&A
  1. Is there a minimum credit score for the 3% down payment program?

The minimum credit score required by both Fannie Mae and Freddie Mac is a 620 middle Fico score.

The exception would be those with who have no credit score to have non-traditional credit.

2. Can I use down payment gift funds?

Yes. Fannie Mae & Freddie Mac both allow gift funds may be used for the down payment and closing costs.

There is no minimum amount the borrower has to put toward the purchase from their own funds.

3. Can I buy a condo or townhome?

Yes, Buyers can purchase a condo, townhome, house, or co-op as long as it is a one unit property.

4. Can I buy a manufactured home with 3% down?

No. Manufactured homes are not allowed with this program.

5. Can I buy a second home or investment property?

No. The 97% loan program may only be used for the purchase of a primary residence.

6. I owned a home two years ago but have been renting since. Will I qualify?

Yes. Borrowers are not required to be a first-time buyers.

7. Will mortgage insurance companies provide PMI for the 97% LTV home loan?

Yes. Mortgage insurers are on board with the program. You do not have to find a PMI company since your lender will order mortgage insurance for you.

8. How much is mortgage insurance?

Mortgage insurance varies widely based on credit score, from $75 to $125 per $100,000 borrowed, per month.

9. Can I get a conforming jumbo loan with 3% down?

No. Maximum loan amounts are $484,400.

10. I’m already approved putting 5% down, but I’d like to make a 3% down payment instead. Can I do that?

Yes. Your lender can re-underwrite your loan if they offer the program. Keep in mind your debt-to-income ratio will rise with the higher loan amount and potentially higher rate.

11. What’s the maximum debt-to-income (DTI) ratio for the 97% LTV program?

Your overall profile including credit score determines your DTI maximum. While there’s no hard-and-fast number, most lenders set a maximum DTI at 43%. This means that your future principal, interest, tax, insurance, and HOA dues plus all other monthly debt payments (student loans, credit card minimum payments) can be no more than about 43% of your gross income.

12. Can I use the 3% down program to refinance?

Yes. If you have an existing Fannie Mae loan, you may be able to refinance up to 97% of the current value.

12. Are accessory units allowed?

Yes, with Fannie Mae Home Path, One-unit properties with accessory units are eligible, including instances in which the accessory unit does not comply with zoning requirements. The appraisal report must meet the specified requirements.

13. Are there income limits?

For Fannie Mae Home Ready:  No income limits in low-income census tracts & for all other census tracts (areas), 100% of area median income (AMI)

The standard 3% down program requires the borrower to be at or below either 100% area’s median income, depending on property location.

Apply for the 3% down Mortgage

Those interested in the new 3% down programs can apply today. This mortgage type is available immediately from lenders across the country.

A seemingly small rule change means that borrowers can achieve their homeownership goals sooner, with less money up front.

Click here to apply for the 97% LTV home buying program.