Learn about the pros and cons of low and no-down-payment mortgages, and compare lenders that offer them.
NOTE: Due to the coronavirus outbreak, obtaining a mortgage may be a bit of a challenge. Lenders are dealing with demand and staffing issues. If you can’t pay your current home loan, refer to our mortgage assistance resource. For the latest information on how to cope with financial stress during this emergency, call Team Chatham to assist you in finding the right solution.
If you’re like many home buyers, a down payment is the biggest obstacle between you and homeownership. Finding a lender with zero- or low-down-payment loans could be the difference between buying a home now or having to wait months or years.
VA loans, backed by the Department of Veterans Affairs, and USDA loans, backed by the U.S. Department of Agriculture, require no down payment to qualified buyers.
FHA loans, insured by the Federal Housing Administration, require down payments as low as 3.5%. And even today’s conventional loans allow down payments as low as 3%.
Putting less money down could mean buying a home sooner. But lower down payments have disadvantages, too, such as higher monthly mortgage payments, so it’s important to understand and compare options before buying a home.