First-Time Buyers · Conventional

Conventional 97 & HomeOne Mortgages

Want just 3% down without an income cap? Conventional 97 (Fannie Mae) and HomeOne (Freddie Mac) are built for first-time buyers who earn too much for HomeReady or Home Possible but still want a low-down conventional loan.

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Conventional 97 / HomeOne at a glance

3% down with no income limit

3%
Minimum down payment on a 97% loan-to-value conventional mortgage.
No cap
Unlike HomeReady and Home Possible, there's no household income limit.
Cancellable
Private mortgage insurance cancels at 20% equity — it doesn't last the life of the loan.

At least one borrower is typically required to be a first-time buyer. Terms are set by Fannie Mae, Freddie Mac, and the lender and change periodically — confirm current details with Bond Street.

Why buyers choose it

When income limits rule out HomeReady

No income ceiling

Earn above 80% of area median income? This is the 3%-down conventional path that still works for you.

Lower long-term cost than FHA

Cancellable PMI means your mortgage insurance can drop off, unlike FHA's typically lifelong MIP.

Two engines, one goal

Conventional 97 runs through Fannie Mae and HomeOne through Freddie Mac — your lender picks whichever qualifies you best.

Gift-friendly down payment

The 3% down can come from eligible gift funds, helping first-time buyers get in sooner.

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Eligibility

What it takes to qualify

  • At least one borrower is generally a first-time buyer (no ownership in the past three years)
  • 3% minimum down payment on a primary residence
  • No household income limit — the key difference from HomeReady and Home Possible
  • Homeownership education may be required when all borrowers are first-time buyers
  • Credit and underwriting guidelines are set by the lender

Common questions

Conventional 97 & HomeOne FAQs

What's the difference between Conventional 97 and HomeOne?

Both are 3%-down conventional loans with no income limit. Conventional 97 is Fannie Mae's; HomeOne is Freddie Mac's. Your lender uses whichever approves you on the best terms.

How is this different from HomeReady or Home Possible?

Same 3% down, but Conventional 97 and HomeOne have no income limit, while HomeReady and Home Possible cap income at 80% of area median income. If you earn above that cap, these are your low-down options.

Do I need to be a first-time buyer?

Generally at least one borrower must be a first-time buyer — meaning no homeownership in the past three years. Start your pre-approval to confirm.

Will I pay mortgage insurance?

Yes, PMI applies with less than 20% down, but it's cancellable once you reach 20% equity — unlike FHA's mortgage insurance, which usually stays for the life of the loan.

Our trusted lending partner

Bond Street Mortgage

We work hand-in-hand with Bond Street Mortgage, serving Bergen, Passaic, Morris, Hudson, and Essex counties. Their team coordinates with us from pre-approval through closing.

Talk to the team

Is 3% down right for you?

Reach out and we'll connect you with the right loan path and a pre-approval that holds weight in a competitive market.

(201) 240-5200  ·  chopper@chopperrussoteam.com
Check your buying power

RE/MAX Select — Chopper Russo Team. Thomas "Chopper" Russo, 392 Ramapo Valley Rd, Oakland, NJ 07436. Not a commitment to lend. Loan products, rates, mortgage insurance, and approval are provided by Bond Street Mortgage subject to its terms and qualification.

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