13 Best Lenders for Low- and No-Down-Payment Mortgages in 2024
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You can get a mortgage with as little as 3% down, or even zero down payment if you qualify for specialty government-backed programs.
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- 50+ mortgage lenders reviewed and rated by our team of experts.
- 40+ years of combined experience covering mortgages and financial topics.
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- Governed by NerdWallet's strict guidelines for editorial integrity.
13 Best Lenders for Low- and No-Down-Payment Mortgages in 2024
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Lender ▾ ▾ | NerdWallet Rating ▾ ▾ | Min. credit score ▾ ▾ | Min. down payment ▾ ▾ | Learn more |
|---|---|---|---|---|
620 | 3.5% | Learn more at NBKC | ||
 New American Funding: NMLS#6606 Top 3 most visited 🏆 Learn more at New American Funding | 580 | 3% | Top 3 most visited 🏆 Learn more at New American Funding | |
 Flagstar: NMLS#417490 LEARN MORE on NerdWallet | N/A | 5% | LEARN MORE on NerdWallet | |
620 | 0% | |||
 Rocket Mortgage, LLC: NMLS#3030 Top 3 most visited 🏆 Learn more at Rocket Mortgage, LLC | 620 | 1% | Top 3 most visited 🏆 Learn more at Rocket Mortgage, LLC |
- Offers FHA purchase, streamline and cash-out refinance loans.
- Offers low rates and fees for FHA loans compared with other lenders, according to the latest federal data.
- Displays customized rates, with fee estimates, without requiring contact information.
- Branches for in-person service are limited to the Kansas City metro area.
New American Funding: NMLS#6606
580
3%
- Offers a wide variety of purchase and refinance mortgages, as well as unique buyer assistance programs.
- Its home equity line of credit can be used for a primary residence or second home.
- Average origination fees are on the high side, according to the latest federal data.
- Personalized mortgage rates are not available on the website without providing contact information.
- Conventional loan terms extend to 40 years, which is unusually flexible.
- Offers options for high-balance mortgages.
- Offers specialized mortgages for professionals, such as doctors and lawyers, starting their careers.
- Reported average time to close (20-30 days) is faster than industry standard.
- The lender’s mobile app is focused on banking, not mortgages.
- Conventional fixed-rate mortgages require a 5% minimum down payment, higher than some competitors.
- Displays detailed sample rates for many of its loan products.
- Offers a generous selection of loans.
- Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
- Origination fees are higher than average, according to the latest federal data.
Rocket Mortgage, LLC: NMLS#3030
620
1%
- Reported average time to close is 15 days faster than industry average.
- FHA and VA loans make up 40% of Rocket Mortgage’s total loan volume.
- Borrowers can apply via mobile app.
- Origination fees are on the higher end, according to the latest federal data.
- No construction or renovation loans.
- Physical branches are only available in Detroit, Cleveland, and Phoenix.
- Largest VA lender in the country by far.
- Offers 24/7 customer service over the phone.
- Offers a free credit counseling service.
- Does not offer second mortgage options like home equity loans or HELOCs.
- Borrower must provide contact info for customized rates.
- Dedicates a significant portion of its business to FHA lending.
- Displays custom rate quotes based on home value, down payment, ZIP code and credit score range.
- “Lock & Shop” lets you secure a rate for up to 90 days, even if you don’t have a purchase contract yet.
- FHA interest rates are on the lower end, according to the latest federal data.
- Origination fees for FHA loans are on the higher end, according to the latest federal data.
- Doesn't offer FHA renovation loans.
- Low-down-payment loan options include FHA, VA, USDA and PNC Community Loan.
- Jumbo loans available with minimum down payments of 5%.
- Customizable mortgage rates are posted online.
- Average mortgage rates are on the high side, according to the latest federal data.
- In-person service is not available in every state.
- You’ll have to supply personal data or account info to get answers by phone.
- A good selection of loan products, including government-backed FHA and VA mortgages.
- Provides “same-as-cash” loan that allows borrowers to compete with cash offers.
- Online application process is clear and simple to follow.
- Doesn't lend in all states.
- Website doesn’t provide customized mortgage rates.
- Lender fees are on the high side, according to the latest federal data.
- Offers mortgage options focused on affordability.
- Convenient online application.
- Offers a HELOC and construction loans.
- HELOCs are not available in every state.
- Borrowers must reach out for customized rates.
- Lender fees for FHA loans are on the lower end, according to the latest federal data.
- Offers FHA streamline refinance mortgages.
- Lists sample mortgage rates and APRs for many of its products online, including a breakdown of estimated monthly payments.
- Sample mortgage rates online are not customizable by credit score.
- Offers specialty loans, such as construction and renovation loans and loans for second homes and investment properties.
- Participates in first-time home buyer assistance programs in Illinois, Indiana and Wisconsin.
- Sample rates for some loan products are available only by contacting a loan officer.
- Physical locations aren't available in all states.
Wells Fargo: NMLS#399801
620
3%
- Sample rates are shown for various loan products, along with the type of borrower and loan that would get them.
- Offers generous down payment and closing cost assistance programs for qualified borrowers.
- Market leader in number of jumbo loans and refinances originated, according to the latest federal data.
- Rate-and-term refinance interest rates offered are lower than average, according to the latest federal data.
- Home loans business is broadly focused on existing bank customers.
- Doesn’t offer specialty home loans or equity borrowing (home equity loans or HELOC).
- Scandals and government actions have damaged consumer trust in recent years.
Some home loans, such as VA loans, backed by the Department of Veterans Affairs, and USDA loans, guaranteed by the U.S. Department of Agriculture, do not require a down payment. If you don't meet the requirements for those loans, low-down-payment mortgages are available, too. Some conventional loans allow down payments as low as 3%. FHA loans, insured by the Federal Housing Administration, require down payments as low as 3.5%.
Pros and cons: Low- and no-down-payment home loans
The pros: You can reach your goal of homeownership more quickly.
If you’re struggling with how to save for a down payment, you don't have to wait months or years until you have a large amount of cash saved.
When you become a homeowner sooner, you can start building home equity.
The cons: Low- and no-down-payment mortgages include extra expenses, and you start with less equity.
Conventional loans with down payments of less than 20%, along with FHA and USDA loans, require buyers to pay for mortgage insurance, which protects the lender in case the borrower defaults. VA loans have a one-time VA funding fee.
Your interest rate and monthly mortgage payment could also be higher with a low-down-payment mortgage.
A low- or zero-down-payment mortgage means you will start your homeownership journey with little to no equity in the home. If your home declines in value, you can end up owing more than the property is worth.
Credit score requirements for low- or no-down-payment mortgages
FHA loans: To qualify for a 3.5% payment on an FHA loan, you’ll need at least a 580 credit score. With a score between 500 and 579, you’ll need a 10% down payment. (See our list of best lenders for bad credit.)
Conventional loans: On low-down-payment conventional loans, a 620 score or better is generally required. Some conventional loans, such as HomeReady and Home Possible, are geared to low-income borrowers.
VA loans: VA loans cater to borrowers with military experience, or the eligible spouses of veterans or service members. The required credit score for VA loans varies by lender, but many ask borrowers to have at least a 620 or have other qualifications.
USDA loans: USDA loans are for buyers in rural and some suburban areas. Applicants with credit scores of 640 and higher can qualify for streamlined processing. Those with lower scores have to go through a more rigorous underwriting process. Applicants with no credit score or limited credit histories can qualify for USDA loans with nontraditional credit information, such as rental and utility payments.
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Last updated on October 1, 2024
Frequently asked questions
- What is the lowest down payment for a mortgage?
You may be able to get a conventional loan with a down payment as low as 3%. An FHA loan, which is insured by the Federal Housing Administration, requires a minimum down payment of 3.5%. Some loans — such as VA and USDA loans — can be secured with no money down.
- Are there income limits on no-down-payment mortgages?
Sometimes, but not always. Some mortgages have income limitations depending on where the property is located, like USDA loans, which are guaranteed by the United States Department of Agriculture. VA loans, backed by the Department of Veterans Affairs, have no income restrictions.
- Which loan programs do not require a down payment or private mortgage insurance?
VA and USDA loans may allow you to purchase a home with no down payment or mortgage insurance. Both of these loans have fees that cover the cost of foreclosure in the event you default on the mortgage loan, however.
- Do I have to be a first-time home buyer for a low- or no-down-payment mortgage?
No, low-down-payment mortgages aren't limited to first-time home buyers. FHA loans are popular with first-time home buyers because of the minimum 3.5% down payment requirement and relaxed credit score requirements. With some 3% down conventional loans, such as HomeReady and Home Possible, a homeowner education course is required if all borrowers are first-time home buyers.
Methodology
The star ratings on this page reflect each lender's overall star ratings. Read more about how we determine those ratings.
The lenders on this page are chosen using this methodology:
NerdWallet reviewed more than 50 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (measured among lenders with at least a 1% market share), lenders with significant online search volume and those that specialize in serving various audiences across the country.
For inclusion in this roundup, lenders must have an overall score of 4 or higher. FHA, USDA and VA loans must each make up at least 1% of the lender's home purchase loan volume, according to the latest HMDA data or FHA and VA loans must each make up at least 1% of the lender's home purchase loan volume and the lender must offer a mortgage program with a minimum down payment of 3% or less or for borrowers with a credit score as low as 620.
NerdWallet solicits information from reviewed lenders on a recurring basis throughout the year. All lender-provided information is verified through lender websites and interviews. We also utilized the latest HMDA data for origination volume, origination fee, average interest rate and share-of-product data.
NerdWallet's Best Lenders for Low- and No-Down-Payment Mortgages in 2024
- NBKC: Best for FHA loans
- New American Funding: Best for customer satisfaction
- Flagstar: Best for overall mortgage experience
- Rate: Best for USDA loans
- Rocket Mortgage, LLC: Best for conventional loans
- Veterans United: Best for VA loans
- Pennymac: Best for FHA loans
- PNC: Best for first-time home buyers
- Network Capital: Best for borrowers with weaker credit
- Truist: Best for variety of loan types
- US Bank: Best for variety of loan types
- Wintrust Mortgage: Best for government-backed loans overall
- Wells Fargo: Best for home buyer assistance
