Do you have little or no money for a down payment? Or, maybe you would just prefer to save that money for something else like home repairs? The good news is that there are plenty of low down payment options and also no down payment options for you depending upon your scenario and qualifications.

The thing that many people always believed is that you needed to come to the table with at least 20% down. That is no longer true. If you do not have a significant down payment, you can still buy a home.

The Pros and Cons of a low down payment mortgage


  • Save your money for something else like home improvements
  • If your interest rate is low enough, it may make sense to borrow and use the money for other investments.
  • Helps first time home buyers who may not have a lot saved.
  • You keep your cash reserves and have little risk if something negative happens to the real estate market.


  • Your payment will be higher
  • You may have mortgage insurance which is an additional cost
  • You do not have as many loan options with a small down payment

Here are some of the low or no down payment options available

FHA Home Loan

VA Home Loans

  • A VA home loan is a ZERO DOWN PAYMENT mortgage.
  • VA home loans are available to veterans and others as outlined in the link below.
  • There is an updront mortgage insurance fee but then no monthly mortgage insurance after that. This fee can be rolled into the loan.
  • Credit scores usually need to be at least 620
  • VA Mortgage rates are competitive
  • Anyone who can qualify for a VA loan should choose this option.

USDA Home Loans

Conventional 97 Mortgage Loan

Frequently Asked Questions

If I am self employed, can I qualify for one of these mortgages? Yes, but you would have to qualify based upon the net income on your tax returns. If that is not possible, then click to read about bank statement loans.

What if I have bad credit scores? Depending upon the program, your score may matter. The good news is that some of these programs allow for slightly lower scores. It would be a good idea to learn how to improve your credit score well before applying for a mortgage.

Can I borrow the small down payment needed? Yes, depending upon the loan program you will be able to have the funds gifted to you by a relative.

What if I need to borrow even more than the purchase price for repairs? The good news is the FHA 203k rehab loan program allows for additional funds to be borrowed for that purpose. Click to learn about the FHA 203k rehab loan.