Best No & Low Down Payment Mortgages

When you buy a house, mortgage lenders typically want you to pay a significant amount of money upfront—as much as 20% of the purchase price, historically.

Lenders want you to make this down payment because it reduces their risk. It’s also advisable because it can reduce your overall cost of borrowing and it reduces your own risk of ending up owing more than the house is worth if property values decline.

However, not everyone can put down 20% when they purchase a home. Fortunately, there are now many programs and lenders that help you buy a home with little to no down payment at all.

On this page:

• Best low down payment mortgage lenders
• Pros & cons of a low or zero down payment mortgage
• FAQs about low down payment mortgages

6 best low down payment mortgage lenders

We analyzed the top low and zero–down payment mortgage companies to make your search for a lender easier.

Here are our picks:

1. Better
2. Rocket Mortgage
3. New American Funding
4. Wells Fargo
5. Chase
6. Loan Depot

1) Better 

Better markets itself as an online mortgage lender focused on both efficiency and on avoiding fees. The lender indicates that it has streamlined the entire process of applying for a loan, making it easy to get a mortgage online. 

Better has been successful at reducing many of the costs traditional mortgage lenders charge, too. This is a big benefit to cash-strapped buyers who are struggling to come up with a down payment.

The company doesn’t charge a commission, and instant loan estimates make it easy to know costs upfront before moving forward. 

Better offers both jumbo and conventional loans, fixed- or variable-rate loans; and Federal Housing Administration (FHA) loans. Here’s what you need to know about Better’s mortgage program.

Minimum down payment

• Conventional: 5%
• FHA: 500–579 credit score pays 10% down; 580+ pays 3.5% down

Lender info

• Overall LendEDU rating: 5.00 / 5.00
• Better Business Bureau rating: A+ 
• States available: 36
• Fixed terms: 15, 20, or 30 years
• ARM terms: 5/1, 7/1, or 10/1 (not available on FHA loans)

Full review: Better Mortgage Review

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2) Rocket Mortgage

Run by Quicken Loans, Rocket Mortgage is focused on making the home buying process simple.

In fact, this lender stands apart, because its streamlined online loan application process can actually make document upload easier by syncing with your bank account. 

Rocket Mortgage is a great choice for those looking to put down as little money as possible because it offers both FHA and Department of Veterans Affairs (VA) Loans. FHA loans allow for a down payment as low as 3.5%, while VA loans allow a down payment as low as 0% for veterans. 

Here’s what you need to know about Rocket Mortgage’s mortgage program.

Minimum down payment

• Conventional: 3%
• FHA: 3.5%
• VA: 0%

Lender info

• Overall LendEDU rating: 4.92 / 5.00
• Better Business Bureau rating: A+
• States available: 50
• Fixed terms: Up to 30 years
• ARM terms: Up to 10/1

Full review: Rocket Mortgage Review

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3) New American Funding

New American, like Rocket Mortgage, offers FHA loans and VA loans that allow borrowers to put down very little to buy a home—or even to make no down payment at all. New American also sets itself apart by working with borrowers who have non-traditional sources of income. 

With New American, getting a mortgage quote online is simple and fast. You can also take advantage of many helpful resources on the lender’s website, including calculators that shed light on what you can expect to pay for your mortgage loan. 

Here’s what you need to know about New American’s mortgage program.

Minimum down payment

• Conventional: Not disclosed
• FHA: 3.5%
• VA: 0% 
• USDA: 0% 

Lender info

• Overall LendEDU rating: 4.60 / 5.00
• Better Business Bureau rating: A+
• States available: 48
• Fixed terms: 15 or 30 years
• ARM terms: 5/1, 7/1, or 10/1

Full review: New American Funding Mortgage Review

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4) Wells Fargo 

Wells Fargo is one of the largest mortgage lenders in the country, and it cares about helping buyers get into a home even if they can’t make a 20% down payment. 

Wells Fargo offers FHA loan, and it also has a yourFirstMortgage program with a minimal down payment requirement for first-time borrowers. This gives those looking to buy a home many options if they have little cash to spare. 

Here’s what you need to know about Wells Fargo’s mortgage program.

Minimum down payment

• Conventional: 3%
• FHA: 3.5% 

Lender info

• Overall LendEDU rating: 4.34 / 5.00
• Better Business Bureau rating: F
• States Available: 50
• Fixed terms: 15, 20, or 30 years
• ARM terms: 5/1 or 7/1

Full review: Wells Fargo Mortgage Review

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5) Chase

Chase is also one of the nation’s largest banks and a full-service mortgage lender. Chase customers with a minimal down payment can benefit from the ability to get an FHA loan through this lender—which means a down payment requirement of just 3.5%. 

While Chase makes mortgage applications and mortgage rates available online, many borrowers will appreciate the fact that there are local Chase branches throughout much of the country. This makes it possible to get in-person assistance during the home buying process. 

Here’s what you need to know about Chase’s mortgage program.

Minimum down payment

• Conventional: Not disclosed
• FHA: 3.5%

Lender info

• Overall LendEDU Rating: 4.33 / 5.00
• Better Business Bureau rating: F
• States available: 50
• FHA loan terms: 15, 20, 25, or 30 years

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6) loanDepot

Although loanDepot is an online mortgage lender, it’s unique among online lenders because it has affiliated locations across the country. If you want in-person assistance while getting a mortgage through loanDepot, you can visit one of more than 150 locations to get the support you need.

For those with low down payments, loanDepot is an especially good choice because its one of the largest FHA and VA loan originators in the United States. 

Here’s what you need to know about loanDepot’s mortgage program.

Minimum down payment

• Conventional: 5%
• FHA: 3.5%
• VA: $0

Lender info

• Overall LendEDU rating: 4.21 / 5.00
• Better Business Bureau rating: A-
• States available: 50
• Fixed terms: 10, 15, 20, or 30 years
• ARM terms: 3/1, 5/1, 7/1, or 10/1

Full review: loanDepot Mortgage Review

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How we chose the best low down payment home loans

To find the best low down payment mortgages, we analyzed lenders offering FHA loans. We did this because the FHA loan program is the broadest low down payment program available to homeowners throughout the country.

We ranked the best FHA lenders based on a weighted average of 10 data points including: 

Low down payment mortgage options

While a 20% down payment is traditionally recommended, most lenders are willing to accept less—even on conventional mortgages.

A number of federal programs are also specifically designed to make it easy to get a home without putting 20% down. Especially if you’re a first-time home buyer.

Some of these programs include:

• FHA Loans: FHA Loans are backed by the U.S. Federal Housing Administration. You can qualify with a 3.5% down payment if you have a credit score above 580 or with a 10% down payment and a credit score above 500. 
• VA Loans: VA Loans are backed by the U.S. Department of Veterans Affairs. Qualifying with a VA lender is possible with a down payment as low as 0% and no private mortgage insurance (PMI), although there are upfront funding fees. 
• USDA Loans: These loans are backed by the U.S. Department of Agriculture. You can also qualify with no down payment, and these loans are intended to facilitate the purchase of homes in rural locations.
• Native American Direct Loans: These loans help veterans who are Native Americans. You can borrow to buy, build, or improve a home on Federal Trust Land.  
• Good Neighbor Next Door: The U.S. Department of Housing and Urban Development runs an initiative to encourage certain types of professionals, such as EMTs, police, and firefighters, to buy homes in areas that need revitalization. 
• 203(k) Rehab Loans: With this program, you can take out just one loan to both buy and improve a home. The loan program is administered by the FHA. 
• Fannie Mae & Freddie Mac Conventional Loans: Fannie and Freddie are government-sponsored companies. They offer several low down payment options for getting conventional mortgages without meeting traditional qualifying requirements.
• HomeReady: HomeReady Loans are offered by Fannie Mae to help low-income and moderate-income borrowers purchase a home. You can make a lower down payment and won’t be responsible for paying the full costs of PMI. 
• Home Possible: These loans for low- to moderate-income borrowers come with a down payment as low as 3%.
• HomePath Mortgage Program: With this program, you can buy homes owned by Fannie Mae without going through the full mortgage qualification process. 
• Energy Efficient Mortgage Program: This program makes it easy to borrow to make energy-efficient improvements to your home by getting a loan insured by the FHA. 

State and local loan programs may also be available depending on where you live. You can learn more about each of these special types of mortgages on our list of first-time home buyer programs. 

Pros & cons of a low or zero down payment mortgage

FAQs about low down payment mortgages