Not all conventional loans require a 20% down payment. While a 20% down payment can help borrowers avoid private mortgage insurance (PMI), there are conventional loan options available with lower down payment requirements. Some conventional loan programs, such as Fannie Mae’s HomeReady and Freddie Mac’s Home Possible, allow borrowers to put down as little as 3% or 5%. Additionally, certain lenders may offer specialized conventional loan products with down payment requirements that differ from the standard 20%. However, it’s essential to note that putting less than 20% down may result in the need for private mortgage insurance, which can increase the overall cost of the loan.