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 logo

PenFed Credit Union

Learn more in our Bankrate review
  • Green circle with a checkmark inside
    Pros
    • No lender fees
    • Offers lender credits up to $2,500
    Red circle with an X inside
    Cons
    • Higher minimum credit score requirements
    • No USDA loans

Veterans United Home Loans

Veterans United Home Loans

Learn more in our Bankrate review

U.S. Bank

U.S. Bank

Learn more in our Bankrate review

Old National Bank

Old National Bank

Learn more in our Bankrate review

Wells Fargo logo

Wells Fargo

Learn more in our Bankrate review

Better logo

Better

Learn more in our Bankrate review

Mr Cooper logo

Mr. Cooper

Learn more in our Bankrate

rocket mortgage logo

Rocket Mortgage

Learn more in our Bankrate review

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

  • 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.
  • 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.
  • 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.