Home Loan Options With Low Down Payment Requirements
While many believe that putting 20% down when buying a home is still necessary, that's not always the case. Lower down payment programs are available and are helping make homeownership more attainable.
How much down payment is required depends on the loan you get, but know that options are available. Here are a few of the most popular low-down-payment home loans.
FHA loans are an excellent option for many first-time homebuyers as they require just a 3.5% down payment. FHA loans offer competitive terms like low-interest rates and lower closing costs and fees than many conventional mortgage loans.
VA loans, which are available to active-duty service members, veterans, or the spouse of a veteran (and some other individuals affiliated with our armed services), are one of the rare mortgage loan programs available that can require zero down!
A down payment is not required with a USDA loan and the mortgage insurance is cheaper than most other low–down–payment loan programs.
Although 20% down payment is traditional, most lenders ask for just 3-5% down on 30-year fixed-rate loans.