13 Best Lenders for Low- and No-Down-Payment Mortgages in 2025
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You can get a mortgage with as little as 3% down, or even zero down payment if you qualify for specialty government-backed programs.
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Why trust NerdWallet
- 50+ mortgage lenders reviewed and rated by our team of experts.
- 40+ years of combined experience covering mortgages and financial topics.
- Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
Our 2025 Best-Of Award Winner
NMLS#3030
13 Best Lenders for Low- and No-Down-Payment Mortgages in 2025
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Lender ▾ ▾ | NerdWallet Rating ▾ ▾ | Min. credit score ▾ ▾ | Min. down payment ▾ ▾ | Learn more |
|---|---|---|---|---|
 Rocket Mortgage, LLC: NMLS#3030 Top 3 most visited 🏆 Learn more at Rocket Mortgage, LLC | 620 | 1% | Top 3 most visited 🏆 Learn more at Rocket Mortgage, LLC | |
620 | 3% | Learn more at NBKC | ||
620 | 3% | |||
N/A | 3.5% | Learn more at First Federal Bank | ||
620 | 0% | Learn more at Veterans United | ||
620 | 3% | Learn more at Northpointe | ||
 PNC Bank: NMLS#446303 Compare More Lenders on NerdWallet | 620 | 3% | Compare More Lenders on NerdWallet | |
 Flagstar: NMLS#417490 Compare More Lenders on NerdWallet | N/A | 5% | Compare More Lenders on NerdWallet | |
 Pennymac: NMLS#35953 Compare More Lenders on NerdWallet | 620 | 3% | Compare More Lenders on NerdWallet | |
 Network Capital: NMLS#11712 Compare More Lenders on NerdWallet | 620 | 3% | Compare More Lenders on NerdWallet | |
 U.S. Bank: NMLS#402761 Compare More Lenders on NerdWallet | N/A | N/A | Compare More Lenders on NerdWallet | |
 SoFi: NMLS#696891 Compare More Lenders on NerdWallet | 620 | 3% | Compare More Lenders on NerdWallet | |
 Wells Fargo: NMLS#399801 Compare More Lenders on NerdWallet | 620 | 3% | Compare More Lenders on NerdWallet |
A zero-down-payment home loan might sound impossible, but they're out there. Some home loans, such as VA loans, backed by the Department of Veterans Affairs, and USDA loans, guaranteed by the U.S. Department of Agriculture, require no down payment.
If you don't qualify for those, you still have options. Some conventional loans allow down payments as low as 3%. FHA loans, insured by the Federal Housing Administration, require at least 3.5% down.
Pros and cons: Low- and no-down-payment home loans
✅ Pros:
Buy a home sooner.
You don’t have to wait to save for a down payment.
Start building home equity right away.
❌ Cons:
Higher interest rates.
Higher monthly payments.
Less home equity.
You’ll likely pay mortgage insurance.
VA loans charge a one-time VA funding fee.
If home values drop, you could owe more than your home is worth.
Credit scores for low- or no-down-payment mortgages
Your credit score affects what loan you qualify for and how much you need to put down.
🏠 FHA loans: 580+ for 3.5% down. 500-579 needs 10% down. (See our list of best lenders for bad credit.)
🏠 Conventional loans: 620+ is usually required. Some, like HomeReady and Home Possible, help lower-income borrowers.
🏠 VA loans: 620+ is often required for eligible borrowers, though there’s no official minimum.
🏠 USDA loans: 640+ for fast approval. Lower scores may qualify but need extra review.
More from NerdWallet
Last updated on March 6, 2025
Frequently asked questions
You may be able to get a conventional loan with a down payment as low as 3%. An FHA loan, which is insured by the Federal Housing Administration, requires a minimum down payment of 3.5%. Some loans — such as VA and USDA loans — can be secured with no money down.
Sometimes, but not always. Some no-down-payment mortgages have income limitations depending on where the property is located, like USDA loans, which are guaranteed by the United States Department of Agriculture. VA loans, backed by the Department of Veterans Affairs, have no income restrictions and don't require a down payment.
VA and USDA loans may allow you to purchase a home with no down payment or mortgage insurance. Both of these loans have fees that cover the cost of foreclosure in the event you default on the mortgage loan, however.
No, low-down-payment mortgages aren't limited to first-time home buyers. FHA loans are popular with first-time home buyers because of the minimum 3.5% down payment requirement and relaxed credit score requirements. With some 3% down conventional loans, such as HomeReady and Home Possible, a homeowner education course is required if all borrowers are first-time home buyers.
Methodology
The star ratings on this page reflect each lender's overall star ratings. Read more about how we determine those ratings.
The lenders on this page are chosen using this methodology:
NerdWallet reviewed more than 40 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (measured among lenders with at least a 1% market share), lenders with significant online search volume and those that specialize in serving various audiences across the country.
For inclusion in this roundup, lenders must have an overall score of 4.5 or higher. FHA, USDA and VA loans must each make up at least 1% of the lender's home purchase loan volume, according to the latest HMDA data or FHA and VA loans must each make up at least 1% of the lender's home purchase loan volume and the lender must offer a mortgage program with a minimum down payment of 3% or less or for borrowers with a credit score as low as 620.
NerdWallet solicits information from reviewed lenders on a recurring basis throughout the year. All lender-provided information is verified through lender websites and interviews. We also utilized the latest HMDA data for origination volume, origination fee, average interest rate and share-of-product data.
NerdWallet's Best Lenders for Low- and No-Down-Payment Mortgages in 2025
- Rocket Mortgage, LLC: Best for low-down-payment loans
- NBKC: Best for customer satisfaction
- Rate: Best for digital convenience
- First Federal Bank: Best for government loans
- Veterans United: Best for VA loans
- Northpointe: Best for borrowers overcoming credit challenges
- PNC Bank: Best for low-down-payment loans
- Flagstar: Best for variety of loan types
- Pennymac: Best for buyer assistance
- Network Capital: Best for borrowers with nontraditional credit
- U.S. Bank: Best for down payment assistance
- SoFi: Best for conventional loans
- Wells Fargo: Best for Wells Fargo banking customers
