Best lenders for low- and no-down payment mortgages in 2024
3 min read
Published January 08, 2024
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If you meet eligibility requirements, it’s possible to get a low- or no-down payment mortgage. Bankrate examined several mortgage lenders to uncover the best for these types of loans. Here is our guide to the best low- and no-down payment mortgage lenders in 2024.
Best low- and no-down payment mortgage lenders
Lender | Credit requirements | Down payment minimum | Bankrate Score |
---|---|---|---|
PenFed Credit Union | 650 for conventional loans, 700 for jumbo loans, 620 for FHA loans | 3% for conventional loans, 3.5% for FHA loans, none for VA loans | 4.7 |
Veterans United Home Loans | 620 for conventional and VA loans | 3% for conventional loans, 3.5% for FHA loans, none for VA and USDA loans | 4.9 |
U.S. Bank | 620 for conventional loans, 740 for jumbo loans | 5% for conventional loans, 3.5% for FHA loans, none for VA and USDA loans | 4.8 |
Old National Bank | 620 for conventional loans, 640 for FHA loans, 680 for VA loans | Undisclosed | 4.6 |
Wells Fargo | 620 for conventional loans | 3% for conventional loans, 3.5% for FHA loans, none for VA and USDA loans | 4.8 |
Better | 620 for conventional loans, 580 for FHA loans | 3% for conventional loans, 3.5% for FHA loans, none for VA loans | 4.6 |
Mr. Cooper | 620 for conventional loans, 580 for FHA loans, 600 for VA loans | 3% for conventional loans, 3.5% for FHA loans, none for VA loans | 4.6 |
Rocket Mortgage | 620 for conventional loans, 680 for jumbo loans, 580 for FHA and VA loans | 3% for conventional loans, 10%-15% for jumbo loans, 3.5 for FHA loans, none for VA loans | 4.6 |
PenFed Credit Union
Learn more
in our Bankrate review
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- Availability: All U.S. states
- Loans offered: Conventional, jumbo, FHA, VA
- Credit requirements: 650 for conventional loans, 700 for jumbo loans, 620 for FHA loans
- Down payment minimum: 3% for conventional loans, 3.5% for FHA loans, none for VA loans
- Where to find: Branch locations and online
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Pros
- No lender fees
- Offers lender credits up to $2,500
Cons
- Higher minimum credit score requirements
- No USDA loans
Veterans United Home Loans
Learn more
in our Bankrate review
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- Availability: All U.S. states
- Loans offered: Conventional, jumbo, FHA, VA, USDA
- Credit requirements: 620 for conventional and VA loans
- Down payment minimum: 3% for conventional loans, 3.5% for FHA loans, none for VA and USDA loans
- Where to find: Branch locations and online
U.S. Bank
Learn more
in our Bankrate review
-
- Availability: All U.S. states
- Loans offered: Conventional, jumbo, FHA, VA, USDA
- Credit requirements: 620 for conventional loans, 740 for jumbo loans
- Down payment minimum: 5% for conventional loans, 3.5% for FHA loans, none for VA and USDA loans
- Where to find: Branch locations and online
Old National Bank
Learn more
in our Bankrate review
-
- Availability: All U.S. states
- Loans offered: Conventional, jumbo, FHA, VA, USDA
- Credit requirements: 620 for conventional loans, 640 for FHA loans, 680 for VA loans
- Down payment minimum: Undisclosed
- Where to find: Branch locations and online
Wells Fargo
Learn more
in our Bankrate review
-
- Availability: All U.S. states
- Loans offered: Conventional, jumbo, FHA, VA, USDA
- Credit requirements: 620 for conventional loans
- Down payment minimum: 3% for conventional loans, 3.5% for FHA loans, none for VA and USDA loans
- Where to find: Branch locations and online
Better
Learn more
in our Bankrate review
-
- Availability: All U.S. states
- Loans offered: Conventional, FHA, VA
- Credit requirements: 620 for conventional loans, 580 for FHA loans
- Down payment minimum: 3% for conventional loans, 3.5% for FHA loans, none for VA loans
- Where to find: Online
Mr. Cooper
Learn more
in our Bankrate
-
- Availability: All U.S. states
- Loans offered: Conventional, FHA, VA
- Credit requirements: 620 for conventional loans, 580 for FHA loans, 600 for VA loans
- Down payment minimum: 3% for conventional loans, 3.5% for FHA loans, none for VA loans
- Where to find: Online
Rocket Mortgage
Learn more
in our Bankrate review
-
- Availability: All U.S. states
- Loans offered: Conventional, jumbo, FHA, VA
- Credit requirements: 620 for conventional loans, 680 for jumbo loans, 580 for FHA and VA loans
- Down payment minimum: 3% for conventional loans, 10%-15% for jumbo loans, 3.5% for FHA loans, none for VA loans
- Where to find: Online
Pros and cons of low- and no-down payment home loans
Pros
- Gets you out of renting and into homeownership sooner
- Makes buying a home feasible even for those with little savings or assets
- Allows you to reserve your savings (if applicable) for emergencies or financial goals
Cons
- Less money down means you’re borrowing more, which translates to higher monthly mortgage payments
- Limited equity upfront so you can’t use it in an emergency, and if the market turns, you could owe more than the home’s worth
- Low-down payment loans require mortgage insurance
- Low-down payment loans could come with higher interest rates
- No-down payment loans come with extra fees
- Some sellers consider less money down a negative, which can be a disadvantage in a hot market
Types of low-down payment mortgages
Conventional 97 loans | HomeReady/Home Possible loans | HomeOne loans | FHA loans |
---|---|---|---|
3% down | 3% down | 3% down | 3.5% down |
620 credit score | Flexible underwriting | Flexible underwriting | 580 credit score (500-579 score with 10% down) |
Income limits | Income limits | No income limits | No income limits |
First-time homebuyers | First-time and repeat homebuyers | First-time homebuyers | First-time and repeat homebuyers |
Types of no-down payment mortgages
VA loans | USDA loans |
---|---|
No money down | No money down |
Flexible underwriting | Flexible underwriting |
No income limits | Income limits |
Eligible service members, veterans and spouses | Borrowers in eligible locations |
FAQ about low- and no-down payment mortgages
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Of the mortgage types that require a down payment, the lowest possible amount is 3 percent of the home’s purchase price. This is the minimum requirement for a conventional loan.
Note: Some lenders advertise 1 percent-down mortgages. These are 3 percent conventional loans that only require the borrower to put down 1 percent; the lender pays the other 2 percent as a grant.
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You don’t have to be a first-time homebuyer to qualify for a low- or no-down payment mortgage. You’ll simply need to meet the lender’s requirements around credit score, debt-to-income (DTI) ratio and other factors.
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To determine the best lenders for low- and no-down payment mortgages, Bankrate periodically evaluates more than 80 lenders for factors relating to affordability, availability and borrower experience, assigning each a Bankrate Score out of five stars. The best lenders for low- and no-down payment mortgages generally have a Bankrate Score of 4 stars or higher. Learn more about our methodology.