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Conventional 97 Calculator

Conventional 97 (Fannie/Freddie) allows 3% down on a primary residence for first-time buyers. Uses conventional PMI (no upfront MIP like FHA, and PMI drops off at 20% equity). Often cheaper than FHA for high-credit borrowers.

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Total monthly P&I + PMI

$2,576

3% down payment

$11,400

Loan amount

$368,600

Monthly P&I

$2,330

Monthly PMI

$246

Year-1 total cost

$30,906

How the math works

$380K price, 3% down = $11,400. $368,600 loan at 6.5% = $2,330/mo P&I + $246 PMI = $2,576/mo total.

PMI drops off at 80% equity (~year 11 on schedule alone, faster with appreciation). Compare with FHA: 3.5% down, upfront MIP 1.75%, annual MIP 0.55% permanent. Run both; decide based on FICO and market.

How to Use

  1. Enter home price and rate.
  2. See loan size, monthly payment, and PMI cost.
  3. Compare quick against FHA math.

Frequently Asked Questions

Who qualifies for Conv 97?

First-time homebuyer (no ownership in past 3 years) OR one of Freddie Mac's Home Possible / Fannie's HomeReady programs with income limits. Minimum 620 FICO for most programs.

Is Conv 97 cheaper than FHA?

Usually for 700+ FICO. Conv PMI drops off; FHA MIP is permanent at <10% down. Plus no upfront FHA fee. At 680-700 FICO, FHA and Conv 97 are similar. Below 680: FHA cheaper.

What are loan limits?

Conforming — $766,550 baseline 2026, up to $1,149,825 in high-cost areas. Above requires jumbo (no 3% down jumbo programs exist).

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