Mortgages with No or Low Down Payment Requirements

March 07, 2024

Many home loan programs offer low down payment requirements – or no down payment required at all.

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.

If you have limited cash or assets on hand for a down payment, but you are otherwise ready and qualified to take on the responsibilities of homeownership, our mortgage options could help you reach your goal. 

No Down Payment

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. 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.

Powerhouse 100

Our Powerhouse 100 loan program offers 100% financing for eligible homebuyers — that means no down payment required. Plus, there are no income limits or first-time homebuyer requirements.

Wealth Building Loan

The Wealth Building Loan program requires no down payment and builds equity quicker by applying more of your payment to principal and interest (P&I) each month. This allows you to eliminate monthly mortgage insurance payments sooner than you would with a conventional mortgage. 

Medical Professional Loan Program

Our doctor loans make it easier for medical professionals to achieve their homeownership dreams by offering no-down-payment mortgage options, with no mortgage insurance requirement.

3-5% Down Payment

HomeReady® and Home Possible® (3%)

The HomeReady® and Home Possible® loan programs provide financing options for qualified low- and moderate-income homebuyers. Plus, they only require 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%.

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 offer low down payment requirements – or no down payment required at all. Talk to your local Waterstone Mortgage home loan expert for more information on your down payment options.