Low Down Payment Options 3%, 3.5%, or zero.

How to buy a home without 20% down.

The traditional 20%-down rule of thumb is more guideline than requirement. Several mainstream loan programs let qualified buyers close with as little as 0–5% down. The trade-offs are real — usually mortgage insurance, sometimes higher rates — but the path to ownership doesn't require waiting until you've saved a quarter of a million dollars.

The main low-down-payment programs

FHA loan — 3.5% down

Government-insured, flexible credit standards, primary residence only. FHA carries mortgage insurance (MIP) that typically lasts the life of the loan, but it's the most common path for buyers with limited savings or credit history still developing.

VA loan — 0% down

Available to active-duty service members, veterans, and eligible surviving spouses. No down payment, no monthly PMI, competitive rates. The strongest low-down-payment option if you qualify.

USDA loan — 0% down

For buyers in eligible (often suburban) zip codes within USDA's income limits. No down payment, no monthly PMI, but requires an upfront and annual guarantee fee.

Conventional 3% down

Available for qualified first-time and repeat buyers. Lower mortgage insurance than FHA in many cases, and PMI falls off automatically once you hit 20% equity.

Conventional 5% down

Standard low-down-payment conventional. Higher mortgage insurance than 3% down but tighter qualification flexibility.

What lower down payment costs you

• Mortgage insurance. Required when you put down less than 20% on most loan types. Adds to the monthly payment until you reach 20% equity (or for the life of the loan on FHA).
• Slightly higher interest rates in some cases, particularly above 95% loan-to-value.
• Larger total interest over the life of the loan because you're financing more.

What lower down payment buys you

• Less cash out at closing. You keep money in reserve for emergencies, repairs, or other investments.
• Earlier homeownership. Time in the market matters — appreciation and equity build start when you close, not when you've finished saving.
• Liquidity. Cash on hand is more flexible than cash buried in equity.

Choosing the right structure

There's no universal right answer — the optimal down payment depends on your savings, credit, monthly cash flow, and how long you plan to stay in the home. Talk to a loan officer who'll model multiple scenarios side-by-side rather than pushing one program.

Want a side-by-side comparison? Reach out — we'll model 3%, 5%, 10%, and 20% down on the same property so you can see the trade-offs in dollars.

Get started today!

Tell us a little about your situation and we'll send personalized loan options within one business day.