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Low Down Payment Mortgage Loans


Like homes, mortgages come in many shapes and sizes. Down payments*** can run from zero (0%) in some instances to 3% and all the way to 20% or more.

First-time buyers may want a low down payment mortgage because they haven’t accumulated large savings to put down on a home. But even buyers who can afford it may want a low down payment loan.

But sometimes down payments are difficult for a borrower. There are a number of low down payment programs that could help.

Veteran's Administration (VA) – as low as 0% down

VA loans are available to active duty and retired members of the U.S Military. Certain categories of spouses and some members of the National Guard or Reserves may also qualify.

  • 15 or 30-year fixed rate mortgage
  • Up to 100% financing may be possible
  • No or low down payment options
  • Low minimum credit scores down to 500

Federal Housing Administration (FHA) – as low as 3.5% down

FHA loans are very popular because of their moderate requirements.

  • Minimum 3.5% down payment required
  • Gift funds are allowed
  • 15 and 30-year fixed rate mortgage
  • Low minimum credit scores down to 500

Conventional Loans – as low as 3.0% down

Many conventional mortgages require a down payment of 20%, but there are some conventional mortgages available with much lower down payments.

  • Home Possible
    • Down payment as low as 5% of the purchase price
    • One to four unit residential condos, manufactured or planned-unit developments*
    • 15 and 30-year Fixed rate mortgages available
    • No cash-out refinancing options available**
    • Gifts, grants, and Affordable Seconds are permitted as a source of funds for down payment and closing costs (restrictions apply)
    • Must be the borrower's primary residence
  • Home Possible Advantage
    • Similar to Home Possible but only 3% down
    • One unit properties only (no manufactured homes)
    • Fixed rate mortgages.
    • Must be the borrower's primary residence

U.S. Dept. of Agriculture (USDA) loans – as low as 0% down

Don’t let the name mislead you. If you live in a rural area or even in some suburban areas, you could qualify.

  • No down payment requirement for qualified borrowers
  • No cash reserve requirements
  • The seller can pay closing costs
  • Specifically for clients who may be challenged to qualify on income for a home purchase in an eligible rural area
  • Funds can be used to build, repair, renovate or relocate a home
  • USDA high balance available

Check out these four low down payment programs – one or more may help get you into your dream home.

*Restrictions apply. Ask your Loan Officer for details.
**Min 620 FICO; Mortgage Insurance required with Loan To Value (LTV) over 80%; Homeownership education required.
***Down payments between 3% to 20% of the purchase price would be required in cash from the buyer. Ex. on a $200,000 purchase - 3% = $6,000; 5% = $10,000; 20% = $40,000


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