Low Down Mortgage Programs
If you’re not eligible for a no money down mortgage, a low down payment mortgage is the next best thing.
- Requires 3% to 5% down
- Requires private mortgage insurance (PMI)
USDA loan guaranteed by the US Department of Agriculture. These loans also feature no mortgage insurance, but you will pay a 1% upfront loan fee as part of your closing costs. USDA loans accommodate moderate-income families, so you can’t earn more than 115% of the median income for your area. To qualify for this mortgage program, you must purchase a property in an eligible rural area. Learn more…
VA loan is guaranteed by the Department of Veterans Affairs. If you’re approved, you can purchase your first home with no money down and no private mortgage insurance. You might be able to roll your closing costs into the loan, too, which can reduce your out-of-pocket expense. There’s no minimum credit score required for a VA loan, but you typically need a credit score between 620 and 640, depending on the mortgage lender. Learn more
Conventional loan programs offer several low down payment options, including a standard conventional loan that requires HomeReady program by Fannie Mae, the Home Possible program by Freddie Mac, and the Conventional 97 home loan program offer 3% down but may typically have income restrictions, and some programs are only available to first-time home buyers. Learn more
FHA mortgages are backed by the Federal Housing Administration. These loans only require 3.5% down, based on the home’s purchase price. You can get approved with a FICO credit score as low as 580. FHA home loans are a great option for homebuyers with less-than-perfect credit. Getting your first mortgage with little down is possible with a loan through the FHA program. Learn More
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