No, You Don’t Need 20% Down To Buy A House
People often think they need a down payment of 20% to secure a home loan. The truth is, there are several loan programs that allow borrowers to make a down payment of as little as 0%! Let’s walk through some of these options together.
Veterans Administration (VA) 0% down
100% financing for eligible veterans and military personnel
Assistance with borrower debt and closing costs is permitted
Limited closing costs *VA loans do not require mortgage insurance, but are subject to an upfront funding fee paid to the VA based on loan value, if applicable
U.S Department of Agricultural (USDA) 0% down
No down payment is required, flexible credit and underwriting terms
Not limited to first time homebuyers
Property must be in an eligible area
Federal Housing Administration (FHA) 3.5% down
Down payment and other gift funds permitted
Flexible credit review
Fixed rates
Also Available:
Conventional financing with down payment as low as 3%, if eligibility criteria is met. Otherwise, standard is typically as low as 5% down
State specific down payment assistance programs
Seller assistance with closing costs
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