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If you meet eligibility requirements, it’s possible to get a low- or no-down payment mortgage, which can put you on an easier path to homeownership. Bankrate examined several mortgage lenders to uncover the best for these types of loans, based on measures including low-down payment programs, lower fees and other opportunities to save. Here is our guide to the best low- and no-down payment mortgage lenders in 2023.
Best low- and no-down payment mortgage lenders
Garden State Home Loans
Garden State Home Loans Mortgage review
| Availability | Available in Connecticut, Delaware, Florida, Maryland, Michigan, New Jersey, New York, Pennsylvania and Virginia |
| Loans offered | Conventional, jumbo, FHA, VA, USDA |
| Credit requirements | 620 for conventional loans |
| Down payment minimum | Undisclosed |
| Where to find | Online |
- Convenient online chat feature to connect with loan officers
- Closings on purchases can take as little as 20 days
- A+ Better Business Bureau rating
Homefinity
Homefinity mortgage review
| Availability | Available in all U.S. states except Nevada and New York |
| Loans offered | Conventional, jumbo, FHA, VA, USDA |
| Credit requirements | 620 for conventional loans; 600 or higher for FHA loans and VA loans (can be lower in some cases) |
| Down payment minimum | 3% for conventional loans; 3.5% for FHA loans |
| Where to find | Online |
- Loan originators available around the clock, and borrowers communicate with same person from start to finish
- Real-time prequalification or same or next-day preapproval
Reliant Home Funding
Reliant Home Funding Mortgage review
| Availability | Available in Colorado, Connecticut, Delaware, Florida, Georgia, Maryland, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee and Vermont |
| Loans offered | Conventional, FHA, VA, USDA |
| Credit requirements | 620 for conventional loans; 500 for FHA loans; 700 for adjustable-rate mortgages; 620 for renovation loans |
| Down payment minimum | 3% for conventional loans; 3.5% for FHA loans; none for VA loans |
| Where to find | Online |
- Emphasis on customer service
- Fully online lending process
- Offers a variety of loan types
U.S. Bank
U.S. Bank Mortgage review
| Availability | Available in all U.S. states |
| Loans offered | Conventional, jumbo, FHA, VA, USDA |
| Credit requirements | 620 for conventional loans; 740 for jumbo loans |
| Down payment minimum | Undisclosed |
| Where to find | Online and in-person |
- Gives eligible existing customers a closing cost credit up to $1,000
- Borrowers can apply online, in person or over the phone, depending on their preference
Wells Fargo
Wells Fargo mortgage review
| Availability | Available in all U.S. states |
| Loans offered | Conventional, jumbo, VA, USDA |
| Credit requirements | 620 for conventional and VA loans |
| Down payment minimum | 3% for conventional loans; none for VA loans |
| Where to find | Branch locations and online |
- Will consider non-traditional credit references in the application process
- Offers low-down payment options to assist lower-income borrowers
Summary: Best low and no down mortgage lenders
| Lender | Credit requirements | Down payment minimum | Bankrate review |
|---|---|---|---|
| Garden State Home Loans | 620 for conventional loans | Undisclosed | Garden State Home Loans Mortgage review |
| Homefinity | 620 for conventional loans; 600 or higher for FHA loans and VA loans (can be lower in some cases) | 3% for conventional loans; 3.5% for FHA loans | Homefinity mortgage review |
| Reliant Home Funding | 620 for conventional loans; 500 for FHA loans; 700 for adjustable-rate mortgages; 620 for renovation loans | 3% for conventional loans; 3.5% for FHA loans; none for VA loans | Reliant Home Funding Mortgage review |
| U.S. Bank | 620 for conventional loans; 740 for jumbo loans | Undisclosed | U.S. Bank Mortgage review |
| Wells Fargo | 620 for conventional and VA loans | 3% for conventional loans; none for VA loans | Wells Fargo mortgage review |
Low-down payment mortgages
| Conventional 97 loans | HomeReady/Home Possible loans | HomeOne loans | FHA loans |
|---|---|---|---|
| 3% down | 3% down | 3% down | 3.5% down |
| 620 credit score | Flexible underwriting | Flexible underwriting | 580 credit score (500-579 score with 10% down) |
| Income limits | Income limits | No income limits | No income limits |
| First-time homebuyers | First-time and repeat homebuyers | First-time homebuyers | First-time and repeat homebuyers |
No-down payment mortgages
| VA loans | USDA loans |
|---|---|
| No money down | No money down |
| Flexible underwriting | Flexible underwriting |
| No income limits | Income limits |
| Eligible service members, veterans and spouses | Borrowers in eligible locations |
Low- and no-down payment mortgages: Pros and cons
Pros
- Gets you out of renting and into homeownership sooner
- Makes buying a home feasible even for those with little savings or assets
- Allows you to reserve your savings (if applicable) for emergencies or financial goals
Cons
- Less money down means you’re borrowing more, which translates to higher monthly mortgage payments
- Limited equity upfront so you can’t use it in an emergency, and if the market turns, you could owe more than the home’s worth
- Low-down payment loans require mortgage insurance
- Low-down payment loans could come with higher interest rates
- No-down payment loans come with extra fees
- Some sellers consider less money down a negative, which can be a disadvantage in a hot market
Methodology
To determine the best low- and no-down payment mortgage lenders, Bankrate evaluated lenders based on several criteria, including affordability (APR, discounts and/or incentives); availability (approval/closing timelines, loan products); and experience (application process, customer service).
