Low Down Payments

Saving up for a down payment can sometimes be the biggest obstacle to buying a new home. If you don’t have enough money for a large down payment – that is, 20% or more of your home value – our Mortgage Advisors can help you find a mortgage with a low down payment that fits you.

What will my payment be with a low down payment?

Low down payment mortgage rates depend on your credit, income, and other factors. Contact us to figure out what your low down payment mortgage payment is likely to be.

Use our Mortgage Payment Calculator

Frequently Asked Questions

What are my options for a low down payment mortgage?

Here are the best options for a low or no down payment mortgage:

  • FHA LoansFHA loans let you buy a home with as little as 3.5% down. If you don’t have money for a down payment, you can use a gift from your parents, relatives, or even your employer for 100% of your down payment. An FHA loan requires you to make monthly FHA mortgage insurance payments for the life of the loan, however.
  • Conventional Mortgages – Conventional mortgages allow you to borrow with as little as 3% down. A conventional mortgage with a down payment less than 20% requires private mortgage insurance (PMI), but you can cancel mortgage insurance once you have paid off 20% of the value of your home. Minimum credit scores are somewhat higher than those needed for an FHA loan, but monthly mortgage insurance premiums are often lower.
  • VA Home Loans – Many borrowers who served or are serving in the US military are eligible for zero down payment VA mortgages. No mortgage insurance is required, and interest rates are low.
  • USDA Home Loans – A zero down payment loan for lower-income residents in rural areas, this affordable, government-backed loan requires an annual guarantee fee.

What are the advantages of no or low down payment mortgages?

There are many benefits of low down payment home loans, such as:

  • More financial flexibility
  • Having money to cover moving expenses, closing costs, or pay down other debts
  • Using your savings to upgrade or furnish your new home

What are the disadvantages of no or low down payment mortgages?

While there are many benefits of low down payment mortgages, they do have some drawbacks:

  • Higher monthly payments
  • The loan will most likely require mortgage insurance
  • Building home equity will take longer and rely more on your home’s appreciation


Why trust Newfi Lending with your home loan?

Newfi is a direct lender, not a broker, so we can make lending decisions fast and at low interest rates. We’ve earned a five-star customer satisfaction rating from LendingTree for our low rates, fast processing, and excellent customer service. Give us a call at (888) 316-3934 and see just how friendly we are!

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How can I get more information?

Talk to us at Newfi Lending. We’ll get you a personalized mortgage rate and review other mortgage options tailored to your situation. Note that all loans are subject to credit qualifications.

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