3% down conventional loans are back!


It has been about two and a half years since a conventional loan was available in Georgia with less than a 5% down payment. Those days are gone with Fannie Mae now allowing the FLEX 97 loan program.

Borrowers looking to buy a home who didn’t have a 5% down payment, but great credit, had to go with an FHA loan. Now I’m not saying FHA is a bad program (it definitely isn’t), but it does have that pesky up front mortgage insurance fee that is rolled into the loan amount. Since the FLEX 97 program is back, borrowers only need 3% down to go with a conventional loan and can avoid paying the up front mortgage insurance required on FHA loans.

Outside of the standard documenting of income, assets, etc., to qualify for the FLEX 97 loan program, one needs to have:

  • 3% down payment (FHA requires 3.5% down)
  • credit score must be 700+
  • purchase/refinance for primary residence only

Some of the advantages of using the FLEX 97 conventional program:

  • only need 3% down
  • no up front mortgage insurance premium required
  • allows borrowers with 700+ credit to obtain a lower total monthly payment using FLEX 97 instead of an FHA loan
  • loan amounts up to $417,000 instead of $346,250 (the max FHA loan amount for metro ATL counties)

As you can see, there are several advantages to using the FLEX 97 loan program for borrowers that qualify. Do you need to know if you qualify for this loan? If you are in Georgia, contact me and we’ll get started!


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