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Best low and no down payment mortgage lenders in 2022

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If you meet eligibility requirements, it’s possible to get a low- or no-down payment mortgage, which can put you on an easier path to homeownership. Bankrate examined several mortgage lenders to uncover the best for these types of loans, based on measures including low-down payment programs, lower fees and other opportunities to save. Here is our guide to the best low- and no-down payment mortgage lenders in 2022.


Methodology

To determine the best low- and no-down payment mortgage lenders, Bankrate evaluated lenders based on several criteria, including pricing, accessibility, availability of low-down payment loan programs and borrower experience.


Best low- and no-down payment mortgage lenders

Bank of America

Bank of America mortgage review

Loan products Purchase and refinance; conventional, jumbo, FHA, VA, home equity line of credit (HELOC)
Credit requirements 620 for conventional loans; 680 for jumbo loans
Pros 
  • Available in all 50 states
  • Fast online prequalification
  • $7,500 lender credit to help cover closing costs
  • Down Payment grant program of up to 3 percent of the purchase price (capped at $10,000) for borrowers in select markets
Cons
  • Fee schedules not disclosed upfront online
Highlight The bank’s Affordable Loan Solution and Freddie Mac Home Possible mortgage products only require a 3 percent down payment.

Flagstar Bank

Flagstar Bank mortgage review

Loan products Purchase and refinance; conventional, jumbo, FHA, VA, USDA, home equity loan, construction and renovation loans
Credit requirements 620 for conventional loans; 700 for jumbo loans; 580 for FHA loans
Pros
  • Available in all 50 states
  • Flexible down payment and closing cost assistance programs, including Flagstar Gift Program (offers up to $5,000 to first-time homebuyers) and Homeownership Opportunities Program (offers up to $8,000 to low-income first-time homebuyers)
Cons
  • Lender fees not disclosed upfront online
  • Home equity loans only offered in some states
Highlight Flagstar Bank offers several programs to help homeowners with the down payment and closing costs.

PNC Bank

PNC Bank mortgage review

Loan products Purchase and refinance; conventional, jumbo, FHA, VA, USDA, HELOC, home equity loan, investment property, interest-only
Credit requirements 620 for conventional loans, jumbo loans and FHA loans; 640 for USDA loans
Pros 
  • Multiple branch locations (not available in every state, however)
  • Low-down payment and government-backed programs with less stringent qualification criteria
  • User-friendly dashboard to monitor loan status
Cons 
  • Online prequalification not available
Highlight PNC Bank offers a closing cost assistance grant of up to $5,000.

New American Funding

New American Funding mortgage review 

Loan products Purchase and refinance; conventional, jumbo, FHA, VA, USDA, HELOC, investment property, flex-term, non-QM, reverse mortgages
Credit requirements 620 for conventional loans
Pros 
  • Get prequalified in as little as three minutes
  • Accredited by the Better Business Bureau (BBB) with an A+ rating
  • Mortgage rates posted online and updated daily
Cons 
  • Lender fees not disclosed online
Highlight New American Funding offers several low- and no-down payment loan options.

Navy Federal Credit Union

Navy Federal Credit Union mortgage review

Loan products Purchase and refinance; conventional, jumbo, VA
Credit requirements 620 for conventional loans and VA loans
Pros
  • Available to members in all 50 states
  • Comparatively low rates
  • No-PMI loan programs
  • $1,000 rate-match guarantee
  • “Freedom Lock” allows borrowers to float their rate down twice
  • Phone and chat support available 24/7
Cons 
  • FHA and home equity loans not available
  • Loans not offered to non-members
Highlight Navy Federal Credit Union offers an incentive of up to $9,000 if you use a real estate agent in the Navy Federal RealtyPlus network.

Low-down payment mortgages

Conventional 97 loans HomeReady/Home Possible loans FHA loans
3% down 3% down 3.5% down
620 credit score Flexible underwriting 580 credit score (500-579 score with 10% down)
Income limits Income limits No income limits
First-time homebuyers First-time and repeat homebuyers First-time and repeat homebuyers

No-down payment mortgages

VA loans USDA loans
No money down No money down
Flexible underwriting Flexible underwriting
No income limits Income limits
Eligible servicemembers, veterans and spouses Borrowers in eligible locations

Low- and no-down payment mortgages: Pros and cons

Pros

  • Gets you out of renting and into a home sooner
  • Allows you to buy a home now instead of in the future, when it could cost more
  • Allows you to reserve your savings (if applicable) for emergencies or other 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

Summary: Best low and no down payment mortgage lenders

With additional reporting by Allison Martin

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Written by
Erik J. Martin
Contributing writer
Erik J. Martin is a Chicago area-based freelance writer/editor whose articles have been featured in AARP The Magazine, Reader's Digest, The Costco Connection, The Motley Fool and other publications. He often writes on topics related to real estate, business, technology, health care, insurance and entertainment.
Edited by
Mortgage editor