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Zero MI 3/6

3% Down + 6% Seller Concession + Zero Mortgage Insurance

A conventional loan with 3% down, 6% seller concessions, and no MI.

Check Eligibility

How Zero MI 3/6 Works

Break the 10% Down Barrier

Get 6% seller concessions with just 3% down. Conventional loans normally require 10% down for this level of seller assistance.

True Conventional Strength

This is a genuine conventional mortgage with competitive rates, flexible terms, and investor confidence.

Zero Mortgage Insurance

Eliminate PMI completely, saving hundreds every month. This benefit typically requires 20% down, not with Zero MI 3/6.

Maximum Purchasing Power

Use seller concessions for closing costs, buydowns, repairs, and other expenses to maximize your negotiating power.

Program At-A-Glance

FeatureZero MI 3/6Traditional Conventional
Down Payment3%3-20%
Seller ConcessionsUp to 6%3% (unless 10%+ down)
Mortgage InsuranceNone RequiredRequired until 20% equity
Loan TypeConventionalConventional
Monthly Savings$200-500+Standard rates + PMI

*Seller concessions may only be applied toward actual closing costs and prepaid items. They cannot be used for the down payment.

Eligibility Requirements

Property & Loan Details

  • Loan Amount: Up to $806,500 (up to $1,209,750 in high-cost areas)
  • Property Types: Single-family homes, condos, PUDs only
  • Occupancy: Primary residence only
  • Purpose: Purchase transactions only

Borrower Qualifications

  • Credit Score: Minimum 620 with clean credit history (no recent collections, judgments, or bankruptcies)*
  • Income: Individual income within 80% of Area Median Income**
  • DTI: Maximum 43% debt-to-income ratio
  • Citizenship: U.S. citizen or permanent resident (green card holders accepted; work permits not eligible)
  • Employment: Minimum 12 months full-time employment history

*Any collections placed within the past 36 months must be paid in full prior to closing.

**Income limit waived if property is in Low or Moderate income census tract per FFIEC

Geographic Availability

Exclusively available in:

  • Washington, DC
  • Maryland
  • Virginia
  • Delaware

Required Documentation

Standard Requirements

  • Homebuyer education certificate (Framework or HUD-approved program)
  • Most recent 30 days pay stubs
  • Previous 2 years W-2s
  • Previous 2 years tax returns with all schedules
  • 2 months bank statements
  • Property appraisal (interior/exterior inspection required)

Additional Items

  • Income verification per FFIEC geocoding requirements
  • Verification of employment within 10 days of closing
  • Proof of homebuyer education completion

Why Zero MI 3/6 Changes Everything

The Traditional Reality:

  • Want 6% seller concessions? Put down 10%+
  • Want to avoid PMI? Put down 20%+
  • Low down payment? Accept 3% seller concessions maximum

The Zero MI 3/6 Reality:

  • 3% down + 6% seller concessions + No PMI
  • More cash for closing costs, rate buydowns, or move-in expenses
  • Competitive conventional loan terms without FHA limitations
  • Maximum flexibility in negotiations

Perfect For

First-Time Homebuyers

This program helps maximize available assistance while keeping upfront costs low, allowing buyers to start building equity faster without the drag of monthly PMI.

Move-Up Homebuyers

It lets homeowners preserve more of their cash while still enjoying premium benefits, and gives them the flexibility to use seller concessions for home improvements.

Competitive Markets

Borrowers can present the strength of conventional financing while also using the full 6% seller concessions as powerful negotiating leverage with sellers.

Loan Terms Available

  • 30-Year Fixed Rate

    Stable, predictable payments

  • 10/6 ARM

    Lower initial rate with 30-year amortization

Get Started Today

Ready to access the most powerful low-down-payment conventional loan ever created?

Our loan partners are standing by to help you qualify for our Zero MI 3/6.

Check My Eligibility Now

Frequently Asked Questions

  • Zero MI 3/6 is a portfolio product with specialized underwriting guidelines that allow this unique combination, breaking traditional lending barriers.

  • Closing costs, prepaids, rate buy-downs, and other allowable transaction expenses (cannot be used toward down payment).

  • This portfolio program doesn’t require MI under its underwriting criteria.

  • No, Zero MI 3/6 is available for purchase transactions only.

  • Income limits are waived if the property is located in a Low or Moderate income census tract per FFIEC geocoding.

  • No. They can only cover closing costs and prepaids.

Important Program Notes

  • Seller concessions may only cover actual closing costs/prepaids and cannot be used for down payment.
  • Homebuyer education required for all borrowers
  • Maximum 5 portfolio mortgages per borrower at any time
  • All outstanding collections within 36 months must be paid prior to closing
  • Property must pass interior/exterior appraisal (no waivers permitted)
  • Portfolio product with specialized underwriting guidelines
  • No appraisal waivers or desktop appraisals; interior/exterior inspection required.

© 2025 Federal Hill Mortgage Company, LLC. All rights reserved.

Federal Hill Mortgage Company, LLC is a broker and lender licensed in MD, DE, PA, VA, DC, NC & TX. We are an Equal Housing Lender.

Individual NMLS #175722 | Company NMLS #176351 (For licensing information, go to: www.nmlsconsumeraccess.org)