What are My Options for a Mortgage Down Payment?

August 28, 2018

You’ve probably heard that you need a 20% down payment for your first home purchase. We’re happy to let you know, that’s not true.

When shopping mortgage loans, you’ll find that different lenders offer different types of home loans. Among other things, these loan programs can vary in amount, interest rate, term length and payment type. There are conventional loans (not insured by a federal agency) and government-insured loans. Some of the most common home loans include:

No-Down-Payment Options

  • USDA Loans – Love wide-open spaces and clear, starry nights? Good news: USDA/Rural Development loans are a great no down payment option for those looking for homeownership in a rural area. Countryside not your thing? Many homes in small towns and even suburban areas are also eligible for USDA loans.
  • VA Loans – Did you know, in many cases, interest rates for VA loans can be better than other conventional loans? If you are an eligible veteran or active military personnel, you may benefit from a no down payment VA loan.
  • Wealth Building Loan – This Waterstone Mortgage program requires no down payment for mortgage amounts up to $650,000.


3-5% Down Payment Options

  • Home Possible® Advantage (3%) – Are you ready to own a home? The Home Possible® Advantage loan program provides financing options for qualified low- and moderate-income homebuyers. Plus, it only requires a 3% down payment!
  • Conventional Loans (3%) – Not only does our conventional loan program have lower mortgage insurance rates, but the down payment requirement can also be as low as 3%! Sounds like a win-win to us.
  • FHA Loans (3.5%) – FHA loan program down payments can go as low as 3.5%. Less-than-perfect credit? No problem. FHA loans offer flexible credit requirements.
  • Single Loan Close Construction Program (5%) – Our Single Loan Close Construction Program can help make building your dream home a reality by offering 95% LTV (aka just 5% down) with one loan to cover the cost of the land, construction costs, and your mortgage. If you’re interested in building, check out the link above to find out more about this exceptional loan program.


It’s never too early to start saving for a down payment. Many of our loan programs require a low or no down payment. Talk to your local Waterstone Mortgage mortgage expert for more information on your down payment options.