Low Down Payment Mortgage Options & Assistance
Understand Your Options
For many buyers, having the funds for a down payment is one of the biggest obstacles to purchasing a home, and putting 20% down may not be feasible. The good news for today’s buyers: you’ve got options. Not only are there mortgage options with low down payment requirements (some as low as 3% or 5%), but there are also resources and programs that may be able to help fund your down payment.
Learn about Low Down Payment Mortgages
Fannie Mae recently announced 3% down payment mortgages to help first-time homebuyers who can’t afford a large down payment but would otherwise qualify for a mortgage. First-time homebuyers interested in this option should ask their lender about the program and discuss the eligibility requirements, including underwriting, income documentation and other standards. For answers to frequently asked questions about the low down payment options, click here.
Additionally, other mortgage programs may be available that offer low (or no) down payment options as well as other features and benefits, such as: FHA loans (Federal Housing Administration), VA loans (Department of Veteran Affairs), and USDA loans (US Department of Agriculture).
Look for Resources and Programs
Down payment assistance is also available to eligible borrowers from certain non-profits, government programs, and local charities. You can also be “gifted” down payment funds from family, friends, employers, etc. For more information, talk to your lender about the types of assistance that may be allowable, and search for available programs on sites such as Down Payment Resource™.