Best Low and No Down Payment Mortgage Lenders
We compared each lender’s advertised interest rate (or customizable rate, when available) for a conventional 30-year fixed-rate mortgage, based on a $400,000 home purchase price with 5% down and an excellent credit score (740+), to the national average 30-year fixed-rate reported by Freddie Mac at the time of writing. Lender rates at least five basis points (.05%) below Freddie Mac were deemed “below the national average.”
Best for banking with a traditional bank
Bank of America
5.0
Our ratings take into account interest rates, lender fees, loan types, discounts, accessibility, borrower requirements and other attributes. All ratings are determined solely by our editorial team.
Minimum down payment
0%
Interest Rate
Below the national average
Minimum credit score
740
Compare rates from participating lenders in your area via Bankrate.com
0%
Below the national average
740
Why We Picked It
Bank of America provides comprehensive support to the newest generation of homebuyers through its Better Money Habits and First-Time Homebuyer Online Edu-Series educational programs. Its lending teams can also assist borrowers via the application channels they prefer, whether digitally, over the phone or in person.
Another reason Bank of America topped our list was because of the wide variety of loan products it offers that are geared toward first-time homebuyers, including its Affordable Loan Solution mortgage, which requires as little as 3% down.
Bank of America also offers a Down Payment Grant program that allows eligible borrowers to receive 3% of the home’s purchase price (or up to $10,000, whichever is less) to put toward their down payment with the Affordable Loan Solution mortgage. Grant repayment isn’t required.
Mortgage clients enrolled in the Preferred Rewards program are also eligible for a reduction in their loan origination fee, or up to a 0.375% interest rate discount based on the minimum combined balances in their Bank of America deposit and/or Merrill Edge and Merrill Lynch investment accounts.
Availability
Available in all 50 states and Washington D.C.
How To Apply
Borrowers can complete the full loan application process online. They can also apply by phone, via mobile app or at a branch. Closing a loan with a bank rep in person can be done outside a branch.
Customer support by phone is available Monday through Friday from 8 a.m. to 10 p.m. EDT, and Saturday from 8 a.m. to 6:30 p.m. EDT.
Pros & Cons
- Offers a range of loan options for first-time homebuyers
- Many ways to apply for a home loan, including a fully online option
- Closing can take longer compared to what other lenders reported
- Interest rate is below the national average but higher than some other lenders we reviewed
Best for large-bank customer support
BMO U.S.
4.5
Our ratings take into account interest rates, lender fees, loan types, discounts, accessibility, borrower requirements and other attributes. All ratings are determined solely by our editorial team.
Minimum down payment
1%
Interest Rate
Below the national average
Minimum credit score
580
Compare rates from participating lenders in your area via Bankrate.com
1%
Below the national average
580
Why We Picked It
Though BMO doesn’t offer specified loan types with a 0% down payment, such as U.S. Department of Veterans Affairs (VA) loans or U.S. Department of Agriculture (USDA) loans, it comes pretty close. Its exclusive Neighborhood Home Loan Product allows qualified borrowers to put as little as 1% down—borrowers also don’t have to pay PMI and are eligible to receive up to $7,500 in down payment or closing cost assistance.
BMO works with DPA programs that can help eligible borrowers fully fund their down payment, and a rep said that the bank offers grant programs to help assist customers in their homebuying journey.
The average BMO U.S. borrower closes a loan in 30 to 45 days. That said, a BMO rep noted that it’s possible to close between seven and 14 days if the applicant completes all required documents in a timely fashion.
Availability
Purchase mortgages are available in all 50 states and Washington D.C.
How To Apply
Borrowers can apply online, by phone, via mobile app or at a branch location. Customer support by phone is available Monday through Friday from 7 a.m. to 10 p.m. CDT, and Saturday and Sunday from 8 a.m. to 8 p.m. CDT.
Pros & Cons
- Neighborhood Home Loan Product provides low monthly payments and doesn’t require PMI
- Live customer service available on Sundays
- Mortgage application process can only be completed partially online
- Doesn’t offer VA or USDA loans
Best for guaranteed closing timelines
Chase
4.5
Our ratings take into account interest rates, lender fees, loan types, discounts, accessibility, borrower requirements and other attributes. All ratings are determined solely by our editorial team.
Minimum down payment
0%
Interest Rate Start
Below the national average
Minimum credit score
620
Compare rates from participating lenders in your area via Bankrate.com
0%
Below the national average
620
Why We Picked It
Chase Home Lending offers an assortment of loan products and programs that aim to put homeownership in reach for many borrowers.
In addition to offering VA and Federal Housing Administration (FHA) loans, Chase has an exclusive Chase DreaMaker mortgage for homebuyers within certain income limits who want to purchase a home. The loan requires a minimum of 3% down, and borrowers receive a $500 credit after taking a homebuyer education course (required for first-time homebuyers).
Borrowers in need of a real estate agent can find one through the Chase Agent Express program and qualify for up to a $5,000 reward through Chase’s partner HomeStory.
Eligible homebuyers may also want to take advantage of the Chase Homebuyer Grant, which gives borrowers a credit of $2,500 or $5,000 on specific loan products to help lower their interest rate, reduce closing costs or partially fund the down payment. Eligible servicemembers may also qualify for Chase’s $2,000 VA Purchase Closing Cost Grant when applying for a VA loan.
No matter what loan you choose, expect a streamlined closing process. Chase promises qualified borrowers $5,000 if closing doesn’t occur within three weeks per the Chase Closing Guarantee
Availability
Available in all 50 states and Washington D.C.
How To Apply
Borrowers can apply online, by phone or at a branch. Customer support by phone is available from Monday to Friday 8 a.m. to 8 p.m. EDT, and Saturday from 9 a.m. to 6 p.m. EDT
Pros & Cons
- Provides exclusive grants and rate discounts to eligible borrowers
- Guarantees an on-time closing for eligible borrowers or $5,000 in compensation
- The Chase Homebuyer Grant is limited to certain locations
- Chase Home Lending Advisors aren’t available in all states
Best for closing cost assistance
Citi
4.5
Our ratings take into account interest rates, lender fees, loan types, discounts, accessibility, borrower requirements and other attributes. All ratings are determined solely by our editorial team.
Minimum down payment
0%
Interest Rate
Below the national average
Minimum credit score
580
Compare rates from participating lenders in your area via Bankrate.com
0%
Below the national average
580
Why We Picked It
In addition to offering FHA and VA loans, Citi has two exclusive programs designed to help make homes more affordable for eligible low- and moderate-income borrowers.
Citi’s proprietary HomeRun mortgage is a low down payment solution aimed at making a home purchase less complicated and more affordable for borrowers in certain areas. With flexible credit requirements, fixed rates comparable to conventional loans and more manageable monthly payments, borrowers can put as little as 3% down with no PMI requirement. This program requires homeownership counseling in most instances.
Additionally, Citi has a Lender Paid Assistance (LPA) program that provides lender credit up to $7,500 to assist eligible borrowers with closing costs.
Citi also has more flexible credit guidelines, accepting a 580 credit score in certain circ*mstances, with 620 being more typical.
Availability
Available in all 50 states and Washington D.C.
How To Apply
Borrowers can start their application online, over the phone, via mobile app or at a branch location, but they must close the loan with a bank rep in person (though this can be done outside a branch with a notary).
Customer support by phone with a CitiMortgage representative is available Monday through Friday from 8 a.m. to 10 p.m. EDT, and Saturday from 9 a.m. to 7 p.m. EDT. Cenlar FSB—which services CitiMortgage’s home loans—offers customer support Monday through Friday from 8 a.m. to 8 p.m. EDT, and Saturday from 8:30 a.m. to 1 p.m. EDT.
Pros & Cons
- HomeRun mortgage offers competitive rates and has no PMI requirement
- Special promotion of $500 credit towards closing costs or a lower mortgage rate for Citi customers who apply for a Citi mortgage
- Only has branches in a handful of cities and states
- Closing must take place in person
Best for low down payment jumbo loans
Connexus Credit Union
4.5
Our ratings take into account interest rates, lender fees, loan types, discounts, accessibility, borrower requirements and other attributes. All ratings are determined solely by our editorial team.
Minimum down payment
0%
Interest Rate
Below the national average
Minimum credit score
640
Compare rates from participating lenders in your area via Bankrate.com
0%
Below the national average
640
Why We Picked It
Connexus has competitive rates below the national average and charges no prepayment fees, which means you can pay your mortgage off early without penalty to save on interest.
For borrowers shopping for jumbo loans with a lower down payment, Connexus accepts as little as 10% down in some cases. It also offers 3% down payment options for its conforming loans.
In addition, Connexus sometimes offers promotional discounts. At the time of writing, the lender offers up to $700 off closing costs.
Speaking of closing, borrowers can complete the Connexus mortgage application entirely online.
Availability
Available in every state except Maryland.
How To Apply
Borrowers can apply online, via mobile app, by phone or at a branch location. Customer support by phone is available Monday through Wednesday and Friday from 7 a.m. to 7 p.m. CDT, Thursday from 9 a.m. to 7 p.m. CDT and Saturday from 8 a.m. to 1 p.m. CDT. Mortgage department hours are 8 a.m. to 5 p.m. CDT, or by appointment outside those hours.
Pros & Cons
- Allows 10% down on jumbo loans based on eligibility
- Advertises low, competitive interest rates
- Doesn’t offer FHA loans
- Minimum credit score threshold may be a little high for some borrowers
Best for customer service and accessibility
Navy Federal Credit Union
4.5
Our ratings take into account interest rates, lender fees, loan types, discounts, accessibility, borrower requirements and other attributes. All ratings are determined solely by our editorial team.
Minimum down payment
0%
Interest Rate
Below the national average
Minimum credit score
Does not disclose publicly
Compare rates from participating lenders in your area via Bankrate.com
0%
Below the national average
Does not disclose publicly
Why We Picked It
Eligible borrowers have access to the credit union’s proprietary Choice loan products—Homebuyers Choice and Military Choice—which provide up to 100% financing with no PMI.
Homebuyers can also save through Navy Federal’s partnership with RealtyPlus, a free program that connects members with a real estate agent and allows them to receive between $400 to $9,000 cash back after closing on a home, based on the sale and/or purchase price of the home.
Navy Federal services 100% of its home loans, assisting members for the life of the mortgage. Live representatives are available to speak to members 24/7 within the U.S.
Availability
Available in all 50 states and Washington D.C.
How To Apply
Borrowers can apply online, by phone, via mobile app or at a branch. Customer support by phone is available 24/7 in the U.S.
Pros & Cons
- Low interest rates compared to many competitors
- Services 100% of its loans and provides 24/7 live support in the U.S.
- Doesn’t offer FHA loans
- Must join Navy Federal to apply for and accept loans
Best for lowest potential rates
PenFed Credit Union
4.5
Our ratings take into account interest rates, lender fees, loan types, discounts, accessibility, borrower requirements and other attributes. All ratings are determined solely by our editorial team.
Minimum down payment
0%
Interest Rate
Below the national average
Minimum credit score
620
Compare rates from participating lenders in your area via Bankrate.com
0%
Below the national average
620
Why We Picked It
PenFed advertises some of the lowest rates around, which is a great hook. Once you peruse its mortgage products, you’ll see familiar no and low down payment loan products like VA and FHA loans. First-time homebuyers, though, may want to look at the credit union’s First Time Home Buyer Advantage loan.
Exclusive to PenFed, the First Time Home Buyer Advantage loan allows aspiring first-time homeowners to only put down 3% of the home sales price. Other perks include no income limits or origination fee and a $500 credit for making 60 consecutive monthly payments on time.
Repeat homebuyers can put down as little as 5% with PenFed’s conventional fixed-rate loan products.
Availability
Available in all 50 states and Washington D.C.
How To Apply
Borrowers can apply online. Mortgage reps are available by phone Monday to Friday from 9 a.m. to 9 p.m. EDT, and Saturday from 9 a.m. to 5 p.m. EDT.
Pros & Cons
- No origination fee or income limits for First Time Home Buyer Advantage loan
- Starting rates for well-qualified buyers were similar to or below the national average, pending the type of loan
- Must join PenFed to apply for and accept loans
- Doesn’t offer USDA loans
Best for first-time home buyer education and resources
U.S. Bank
4.5
Our ratings take into account interest rates, lender fees, loan types, discounts, accessibility, borrower requirements and other attributes. All ratings are determined solely by our editorial team.
Minimum down payment
0%
Interest Rate
Below the national average
Minimum credit score
640
Compare rates from participating lenders in your area via Bankrate.com
0%
Below the national average
640
Why We Picked It
In addition to offering VA and Federal Housing Administration (FHA) loans, U.S. Bank also offers its American Dream mortgage. With this loan, eligible borrowers who earn a low to moderate income can put down as little as 3%—and they don’t have to pay PMI.
Borrowers can also receive between $5,500 and $10,000 in down payment assistance with the American Dream loan. To qualify, borrowers need at least a 640 credit score and a debt-to-income (DTI) ratio of 43% or less.
Borrowers who open up a qualifying checking account at U.S. Bank are also eligible to receive up to 0.25% off their home loan (or up to $1,000), which is applied toward the closing costs.
Availability
Available in all 50 states and Washington D.C.
How To Apply
Borrowers can begin their application online. Customer support by phone is available Monday through Friday from 7 a.m. to 8 p.m. CDT, and Saturday from 9 a.m. to 5 p.m. CDT.
Pros & Cons
- Borrowers only need to put down 3% for its American Dream mortgage, and there’s no PMI requirement
- Offers specialty discount on closing costs to existing customers with a qualified checking account
- American Dream mortgage is only offered in 25 states and has income thresholds and debt requirements
- Conventional fixed-rate loans require a minimum of 5% down
Best for loan and down payment assistance programs
Flagstar Bank
4.0
Our ratings take into account interest rates, lender fees, loan types, discounts, accessibility, borrower requirements and other attributes. All ratings are determined solely by our editorial team.
Minimum down payment
0%
Interest Rate Start
Below the national average
Minimum credit score
580
Compare rates from participating lenders in your area via Bankrate.com
0%
Below the national average
580
Why We Picked It
Flagstar Bank maintains a wealth of options for borrowers seeking low down payment home loans (Fannie Mae HomeReady and Freddie Mac Home Possible) or no down payment home loans (Flagstar’s Destination Home Mortgage). Its Destination Home Mortgage offers flexible eligibility criteria for a new home purchase or a home purchase with renovation.
Flagstar also has several exclusive down payment assistance programs geared towards aspiring homeowners in underserved areas, including its Flagstar Gift Program which gives qualified first-time homebuyers up to 3% of the purchase price or $7,500 ($15,000 in certain locations) for their down payment and closing costs.
Availability
Available in all 50 states and Washington D.C.
How To Apply
Borrowers can apply online. Customer support by phone is available Monday through Friday from 7:30 a.m. to 8 p.m. EDT, and Saturday from 7:30 a.m. to 4 p.m. EDT.
Pros & Cons
- Offers a wide selection of loan types and down payment assistance programs
- Allows a minimum of 10% down on jumbo loans
- Some loans and down payment programs are limited to certain areas
- Borrowers need to finalize the closing process in person
Best for underserved communities nationwide
Wells Fargo
4.0
Our ratings take into account interest rates, lender fees, loan types, discounts, accessibility, borrower requirements and other attributes. All ratings are determined solely by our editorial team.
Minimum down payment
0%
Interest Rate
Below the national average
Minimum credit score
600
Compare rates from participating lenders in your area via Bankrate.com
0%
Below the national average
600
Why We Picked It
For homebuyers seeking a lender with a commitment to minority homebuyers, competitive interest rates and several low down payment mortgage loan options, Wells Fargo may be the lender for you.
For eligible borrowers at or below 80% of their area’s median income, Wells Fargo combines several affordability features in its exclusive Dream. Plan. Home. mortgage and closing cost programs. Together, these products allow for a 3% down payment that can be layered with gift funds and other forms of assistance plus an upfront closing cost credit up to $5,000.
Wells Fargo also does not include prepayment penalties in any of its current home lending products, which can be a money-saver if you plan to pay off your mortgage early.
Availability
Available in all 50 states and Washington D.C.
How To Apply
Borrowers can apply online, by phone, via mobile app or at a branch. Closing requirements vary by state.
New mortgage customers can speak to a representative Monday through Friday from 7 a.m. to 8 p.m. CDT, and Saturday from 8 a.m. to 6 p.m. CDT. Existing mortgage customers can reach a representative Monday through Friday from 7 a.m. to 10 p.m. CDT, and Saturday from 8 a.m. to 2 p.m. CDT.
Pros & Cons
- Offers many government loan options and 3% down on conventional conforming fixed-rate loans
- Allows borrowers to use gift funds and down payment assistance program
- Requires at least 20% down on jumbo loans
- Closing cost credit is only available for properties located in certain areas
Best for online mortgage process
Ally
3.5
Our ratings take into account interest rates, lender fees, loan types, discounts, accessibility, borrower requirements and other attributes. All ratings are determined solely by our editorial team.
Minimum down payment
3%
Interest Rate
Below the national average
Minimum credit score
620
Compare rates from participating lenders in your area via Bankrate.com
3%
Below the national average
620
Why We Picked It
Ally offers a fully online application process in which borrowers can get preapproved for a home loan in as little as three minutes. Once preapproved, eligible borrowers gain access to Ally’s lineup of home loans, some of which require as little as 3% down.
If you get your mortgage through Ally, you won’t have to pay any lender fees, which means more money in your pocket. Ally home loans also typically close 10 days faster than the industry average.
Availability
Available in all 50 states and Washington D.C.
How To Apply
Borrowers must complete their application online and close in person. Customer support by phone is available from Monday to Friday 8 a.m. to 10 p.m. EDT, and Saturday 10 a.m. to 4 p.m. EDT.
Pros & Cons
- 100% online application process
- No lender fees, including application, origination and underwriting fees
- Borrowers need to close in person
- No 0% down payment loan options
Summary: Mortgage Lenders For Low And No Down Payments
| Company | Company - Logo | Forbes Advisor Rating | Forbes Advisor Rating | Interest Rate | Minimum down payment | Minimum credit score | Learn More CTA text | Learn more CTA below text | Learn More |
|---|---|---|---|---|---|---|---|---|---|
| Bank of America |  | 5.0 |  | Below the national average | 0% | 740 | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com | |
| BMO U.S. |  | 4.5 |  | Below the national average | 1% | 580 | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com | |
| Chase |  | 4.5 | | Below the national average | 0% | 620 | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com | |
| Citi |  | 4.5 | | Below the national average | 0% | 580 | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com | |
| Connexus Credit Union |  | 4.5 | | Below the national average | 0% | 640 | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com | |
| Navy Federal Credit Union |  | 4.5 | | Below the national average | 0% | Does not disclose publicly | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com | |
| PenFed Credit Union |  | 4.5 | | Below the national average | 0% | 620 | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com | |
| U.S. Bank |  | 4.5 | | Below the national average | 0% | 640 | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com | |
| Flagstar Bank |  | 4.0 |  | Below the national average | 0% | 580 | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com | |
| Wells Fargo |  | 4.0 | | Below the national average | 0% | 600 | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com | |
| Ally |  | 3.5 |  | Below the national average | 3% | 620 | Compare Rates | Compare rates from participating lenders in your area via Bankrate.com |
How To Get the Best No or Low Down Payment Mortgage
Even though no and low down payment mortgages provide an entry point for people who need support with home affordability, prospective home buyers still need to meet certain eligibility requirements to qualify.
While only specific borrowers can qualify for certain loans, such as with U.S. Department of Veterans Affairs (VA) and U.S. Department of Agriculture (USDA) loans, countless other loan programs can help you afford a home. Here are some tips to put you in the best position to qualify and get the most advantageous terms.
- Research down payment assistance programs. Many lenders support borrowers applying for down payment assistance or cash grants to help cover their down payment fully or in part. There are several thousand DPA programs nationwide, mostly funded by federal, state and local government agencies. However, some banks, credit unions and local charities run similar programs that can help you save thousands of dollars toward a home purchase.
- Boost your credit score. Though most no and low down payment home loans don’t require a solid credit score, many lenders prefer that you have at least a score of 620. So, to ensure you have access to as many loan programs as possible, take steps to lift your credit, such as reducing your debt and paying your bills on time. Doing so may also help you get a reduced rate.
- Consult a housing counselor. Shopping for a home—especially if you’re a first-time home buyer—can be overwhelming. The good news is that you can consult a housing counselor for advice. Check out the Department of Housing and Urban Development’s directory for a participating housing counseling agency in your area.
- Shop several lenders. Compare loans and programs from at least three lenders and see where you get the most competitive interest rates and fees. Research has shown that comparing the offerings of multiple lenders can potentially save borrowers up to $1,200 per year. Also, ask if the lender charges a prepayment penalty to avoid extra costs if you think there’s a possibility you’ll pay off your mortgage early.
- Maximize your savings for a down payment. A larger down payment will help lower your monthly mortgage payment. It’ll also put you in a better position to get a lower interest rate. So, see if there are ways to sock away extra cash ahead of time. Some strategies include taking on a side hustle, reducing spending, moving back home or taking on a roommate.
How To Buy a House With No Money Down
There are a couple of mortgage programs that offer 100% financing. Since these loans have no down payment requirement, first-time home buyers generally have an easier time qualifying for them. If you’re looking to buy a house with little or no down payment, consider the following options and compare several lenders to find the best rate.
Types of Mortgage Loans With No Down Payment
These two government-backed loan programs don’t require a down payment:
- VA loan. VA loans don’t require a down payment when the sales price is lower than the home appraisal value. This loan program is exclusively for U.S. military members, veterans and their families.
- USDA loan. USDA loans are for home buyers in eligible rural areas across the U.S. Applicants must also have a low to moderate income to qualify for financing.
Typically, conventional loans require a minimum down payment, but select lenders waive the requirement for eligible borrowers. One lender to consider is Navy Federal Credit Union. Its Homebuyers Choice and Military Choice loan programs don’t require a down payment or private mortgage insurance.
Types of Mortgage Loans With Low Down Payment
Several home purchase loan programs require as little as 3% down to qualify:
- Conventional mortgage. A conventional home loan may require as little as 3% down, but you’ll typically need a 20% down payment to waive PMI costs.
- Fannie Mae HomeReady: A HomeReady loan only requires a 3% down payment. Income restrictions apply, but first-time and repeat home buyers are eligible.
- Federal Housing Administration (FHA) loan. The minimum down payment for an FHA loan is 3.5% with a credit score above 580 and 10% for credit scores from 500 to 579.
- Freddie Mac Home Possible. This loan program only requires 3% down and gives borrowers with a low or very low income the opportunity to own a home.
Lenders and government agencies may also offer down payment assistance programs and first-time home buyer grants, making it easier to meet the financing requirements.
Pros and Cons of Low Down Payment Mortgages
Before you start shopping around for a low down payment home loan, consider the main benefits and drawbacks of these programs.
Pros of Low Down Payment Mortgages
- Flexible credit and income requirements
- May combine with down payment assistance programs and grants
- Repeat home buyers can qualify
- Ability to utilize cash reserves for other financial priorities
Cons of Low Down Payment Mortgages
- Subject to mortgage insurance premiums or higher rates
- Higher monthly mortgage payment
- Low home equity
- Income restrictions may apply
Methodology
We graded based on features that have a meaningful impact on the cost of a mortgage and a borrower’s experience, including interest rates, loan options, accessibility, closing time and customer service.
We award bonus points if a lender offers a specialty rate discount, a home equity product or maintains a fully online mortgage application process.
Our scoring method is broken down as follows:
- Loan options. 25%
- Interest rate. 20%
- Accessibility. 20%
- Customer service experience. 20%
- Time to close. 15%
- Bonus points. Up to 15 points
We chose to focus on these core elements to bring forward lenders that offer the most competitive rates while also providing a satisfactory customer experience accessible to borrowers of all financial backgrounds. We believe this scoring system best reflects consumers’ top priorities when comparison shopping for mortgage lenders.
To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Mortgage Lenders.
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Frequently Asked Questions (FAQs)
Can you get a VA home loan with no down payment?
Yes. There’s no down payment requirement if the appraisal value exceeds the sales price.
What is the credit score required to buy a house with no down payment?
Most lenders require a minimum 620 credit score to qualify for a zero-down home loan. However, credit requirements differ by lender and program; the score can be as low as 580 or may start as high as 640.
What is the average down payment on a house?
The nationwide averagedown payment for a house was 14.4%—an average median of $34,248—during the second quarter of 2023, reports Hannah Jones, an economic data analyst at Realtor.com.
When do you pay the down payment on a house?
The entire amount is due at closing, but you’ll likely have to make an initial deposit—known as earnest money—after the seller accepts your purchase offer. The earnest money is then applied to the down payment at closing.
Which type of mortgage does not require a down payment?
VA and USDA-backed loans require no down payment when the home appraisal value is lower than the loan amount. Each loan program has unique borrower eligibility requirements.
Alternatively, you can look to conventional first-time home buyer loans, which require as little as 3% down.
Can you get a low or no down payment mortgage with bad credit?
Yes, there are several mortgage options if you have poor credit. FHA loans have down payments as low as 3.5% with a credit score of at least 580 or 10% with a score between 500 and 579.
VA loans are another option. The VA doesn’t set a minimum credit score or down payment requirement, but many lenders do. Typically, you’ll need a credit score of at least 580 to qualify for a VA loan.
