Perhaps one of the most challenging things about buying a home is saving for the down payment. Many buyers think they
need more than they actually do to buy a home; however, the down payment doesn’t have to be a barrier on the road to
homeownership.  

Low down payment mortgages

Fortunately, there’s many low down payment mortgage options available for homebuyers. Reasons for needing to pay
a lower down payment may include having a small amount of savings, or wanting to invest the savings you have into
home repairs or other projects. 

Mortgage options offering lower down payment options may come with higher interest rates and mortgage insurance,
which adds up over the lifespan of the loan. However, the convenience of a lower mortgage may be what’s needed to
start the journey to homeownership. 

FHA Loans

FHA loans are among the most popular types of home loans, as they offer flexibility to homebuyers of diverse
financial backgrounds – with a down payment of about 3.5 percent. The requirements are simple, and you don’t have to
be a first-time homebuyer to qualify. 

A major positive aspect of this loan type is your credit score doesn’t have to be stellar for you to qualify. Some
lenders approve FHA loans with credit scores as low as 580.  

One drawback to an FHA loan is that you cannot cancel the monthly mortgage insurance that comes along with it unless
the home is refinanced. Traditional mortgage insurance is canceled when you have built up 20% equity in the
property, but this isn’t the case with FHA loans. 

VA Home Loans

Buyers who have current or former military service status can qualify for this zero down mortgage. While no
downpayment is required, buyers may put down any amount they wish, coinciding with their homebuying goals. 

If you need assistance with finding the right loan type fitting your needs, consider working with a mortgage loan
officer to explore your options.