Conventional 97 Loans

What is Conventional 97 Loans?

Conventional 97 Loans is a grant for homebuyers in Georgia.

• The Conventional 97 loan program allows qualified homebuyers to purchase a home with as little as 3% down payment. Offered through Fannie Mae (standard 97% LTV, HomeReady) and Freddie Mac (HomeOne, Home Possible), this program is designed primarily for first-time homebuyers. The 3% down payment may be sourced from personal savings, gifts, or eligible down payment assistance grants. No income limits apply for the standard Fannie Mae 97 LTV; HomeReady and Home Possible require income at or below 80% AMI. Minimum credit score of 620 required.
• Low down payment of only 3%.
• Down payment can come from personal savings, gift funds, or eligible DPA grants.
• No income limits for standard Fannie Mae 97 LTV.
• Available through HomeReady (income limit: 80% AMI) and HomeOne programs.
• Cancellable PMI once equity reaches 20%.
• Competitive interest rates.
• Available for first-time homebuyers who have not owned a home in past 3 years.
• Can be paired with eligible state and local DPA programs.
• Funding comes from Federal.

How much assistance does it provide?

Conventional 97 Loans provides assistance worth 3% of the purchase price, as set by the program.

• The program asks buyers to contribute 3%.
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Conventional 97 Loans is structured as a grant, so it is not repaid.

• The assistance is recorded in 1st Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Conventional 97 Loans is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Conventional 97 Loans sets its income limit as follows: No income limit for Standard 97/HomeOne; 80% AMI limit for HomeReady (Fannie Mae) and Home Possible (Freddie Mac).

• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Conventional 97 Loans caps the purchase price as follows: Must not exceed conforming loan limits: $832,750 (standard); higher in high-cost areas.

• Eligible property types include Single Family, Condo, Townhouse, 2-4 Unit, and New Construction.
• New construction is eligible.

Where does it apply?

Conventional 97 Loans serves buyers purchasing anywhere in Georgia.

How do you apply?

Applications for Conventional 97 Loans go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through Any HUD-approved housing counseling agency. Online courses available at Framework (frameworkhomeownership.org) and eHome America. In-person courses from local HUD-approved counselors also qualify..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved with the provider and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.