---
title: What is Conventional 97 (Fannie 97, Freddie 97) Mortgage?
description: Both government-sponsored enterprises, Fannie Mae and Freddie Mac offer a conventional mortgage for first-time homebuyers with as little as 3% down as a more affordable way to enter the housing market
---
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1. [Frequently Asked Questions](https://blog.capcenter.com/migration/faq?hsLang=en)
2. [Mortgage](https://blog.capcenter.com/migration/faq/mortgage?hsLang=en)
# What is Conventional 97 (Fannie 97, Freddie 97) Mortgage?
Both government-sponsored enterprises, Fannie Mae and Freddie Mac offer a conventional mortgage for first-time homebuyers with as little as 3% down as a more affordable way to enter the housing market while allowing borrowers to keep more money in their pockets for other expenses.
These mortgages are eligible to purchase a 1-unit primary residence, utilizing a fixed rate with a maximum term of 30 years. Mortgage insurance is required.
Only one borrower must be a first-time homebuyer, but all borrowers must occupy the property as their primary residence. If all borrowers are first-time homebuyers, an online homebuyer education course must be completed prior to closing.
There is no maximum income limit, but there is a reduction in interest rate or cost if the qualifying income is below 100% of the Area Median Income.
The Conventional 97 program, also known as 97% Conventional, Fannie 97, and/or Freddie 97, usually has a higher mortgage insurance premium than [Fannie Mae's HomeReady and Freddie Mac's Home Possible® products](https://23282485.hs-sites.com/knowledge/does-capcenter-offer-homeready-and-home-possible-products?hsLang=en),
- [General Questions](https://blog.capcenter.com/migration/faq/general-questions?hsLang=en)
- [Mortgage](https://blog.capcenter.com/migration/faq/mortgage?hsLang=en#main-content)
- [Glossary](https://blog.capcenter.com/migration/faq/mortgage?hsLang=en#glossary)
- [CapCenter Product Offerings](https://blog.capcenter.com/migration/faq/mortgage?hsLang=en#capcenter-product-offerings)
- [Zero Closing Costs Questions](https://blog.capcenter.com/migration/faq/mortgage?hsLang=en#zero-closing-costs-questions)
- [Loan Qualification](https://blog.capcenter.com/migration/faq/mortgage?hsLang=en#loan-qualification)
- [Technology](https://blog.capcenter.com/migration/faq/mortgage?hsLang=en#technology)
- [Pre-approvals](https://blog.capcenter.com/migration/faq/mortgage?hsLang=en#pre-approvals)
- [Applying for a Mortgage](https://blog.capcenter.com/migration/faq/mortgage?hsLang=en#applying-for-a-mortgage)
- [Process Questions](https://blog.capcenter.com/migration/faq/mortgage?hsLang=en#process-questions)
- [General](https://blog.capcenter.com/migration/faq/mortgage?hsLang=en#general)
- [Real Estate](https://blog.capcenter.com/migration/faq/real-estate?hsLang=en#main-content)
- [Buying a home](https://blog.capcenter.com/migration/faq/real-estate?hsLang=en#buying-a-home)
- [Selling a home](https://blog.capcenter.com/migration/faq/real-estate?hsLang=en#selling-a-home)
- [Glossary](https://blog.capcenter.com/migration/faq/real-estate?hsLang=en#glossary)
- [General Questions](https://blog.capcenter.com/migration/faq/real-estate?hsLang=en#general-questions)
- [Insurance](https://blog.capcenter.com/migration/faq/insurance?hsLang=en)
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