Low Down Payment Mortgage

A low down payment mortgage program allows buyers to purchase a home with a smaller down payment, making homeownership more affordable.

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Low Down Payment Mortgage Options

Many people believe homeownership is simply out of reach because they don’t have enough for a down payment. However, there are many low-down payment options available. Some even allow for a down payment as low as 3%. At RWM Home Loans, we want to make homeownership more accessible for you.

Low Down Payment vs. Down Payment Assistance

Low Down Payment

Mortgage loan options with lower required down payments

Typically require 0% – 5% down (varies by loan type)

Offered by mortgage lenders, backed by FHA, VA, USDA, or Fannie Mae/Freddie Mac

Available to borrowers who meet credit, income, and loan program requirements

No extra application process beyond qualifying for the loan

May require private mortgage insurance (PMI) unless using VA or USDA loans

Down Payment Assistance

Financial aid programs that help cover down payments and/or closing costs

Can cover part or all of the down payment

Offered by state/local housing agencies, nonprofits, or lenders

Often limited to first-time buyers, lower-income households, or specific areas

May come in the form of grants (free money), second mortgages, or forgivable loans

Requires a separate application and approval process, sometimes with homebuyer education courses

Exploring Home Loans with Low Down Payment

Finding a great home loan involves careful consideration of your needs, finances, and history. We have unique low down payment options so that you can dream big.

| CONVENTIONAL LOAN

As low as 3%-5% down

Condo, Townhome, or Single-Family allowed

Mortgage insurance – Can be removed

Loan limits differ by county*

| FHA LOAN

As low as 3.5% down

Condo, Townhome, or Single-Family allowed

Flexible qualifying requirements

Loan limits differ by county**

| HOMEREADY & HOMEPOSSIBLE

As low as 3% down

Flexible down payment source

Homebuyer education course

Non-occupant, Co-borrower, or boarder income to qualify

| HOMEREADY & HOMEPOSSIBLE

Cover part or all of down payment

Owner-occupied properties

Homebuyer education course

Fixed-rate loans

*To learn more about your county’s Conforming loan limits, please visit: Federal Housing Finance Agency

**To learn more about your county’s FHA loan limits, please visit: U.S. Department of Housing and Urban Development

All Loan Programs

Want to Find a Down Payment Assistance Program?

Use Our Down Payment Resource Tool

We are excited to announce that we are partnered with Down Payment Resource, a great online tool for everything you need to know about DPA and available programs. For more information and to start finding program matches for your home purchase, click below!

Find DPA Programs

Low Down Payment FAQ

What is considered a low down payment for a home loan?

A low down payment is typically 3% to 5% of the home’s purchase price, though some loan programs offer even lower options.

Are there home loan programs that allow a 0% down payment?

Yes, VA loans (for eligible veterans and service members) and USDA loans (for rural homebuyers) offer 100% financing with no down payment.

Do I need a high credit score to qualify for a low down payment loan?

Not necessarily. FHA loans allow credit scores as low as 580, while some conventional programs require at least 620.

Can I use gift funds for my down payment?

Yes, many loan programs allow you to use gift funds from family members or other eligible donors.

What are the income limits for low down payment loan programs?

Some programs, like HomeReady® and Home Possible®, have income limits based on your area’s median income, while others, like FHA and VA loans, do not.

Mortgage Lending Simplified

Download the free RWM Home Loans Fluid Mobile App today and get started on your journey to homeownership.

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