Typically, conventional loans require PMI when you put down less than 20 percent. … Most lenders offer conventional loans with PMI for down payments ranging from 5 percent to 15 percent. Some lenders may offer conventional loans with 3 percent down payments. A Federal Housing Administration (FHA) loan.

What is the minimum down payment on a conventional loan?

The minimum down payment required for a conventional mortgage is 3%, but borrowers with lower credit scores or higher debt-to-income ratios may be required to put down more. You’ll also likely need a larger down payment for a jumbo loan or a loan for a second home or investment property.

What kind of loan requires 20% down?

Conventional loans come with very low rates, plus no mortgage insurance is required when you put 20% down. Conventional loans are sponsored by Fannie Mae and Freddie Mac and available at your local lender.