14 Best Lenders for Low- and No-Down-Payment Mortgages of 2023
Learn if you qualify for a zero-down home loan and compare lenders that offer low-down-payment mortgages.
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Saving for a down payment is one of the biggest obstacles to homeownership. Can you buy a house with no money down? It’s possible, but the conditions to qualify for a no-down-payment mortgage are highly specific. If you aren’t eligible, it might be easier to qualify for a low-down-payment mortgage.
No-down-payment loans include VA loans, backed by the Department of Veterans Affairs, and USDA loans, guaranteed by the U.S. Department of Agriculture. VA loans are available to current and veteran service members and eligible spouses, and USDA loans are available for people buying property in specific rural and suburban areas.
However, even a no-down-payment mortgage may still require some cash: You’ll likely have up-front expenses like fees, closing costs and mortgage insurance (or you might be able to roll them into your loan).
Low-down-payment mortgages include FHA loans, insured by the Federal Housing Administration, which require down payments as low as 3.5%. And even some of today's conventional loans allow down payments as low as 3%.
The lenders on this list offer home loans with no down payment (zero-down mortgages) and/or low-down-payment FHA or conventional loans.
The star ratings shown are specific to the product featured from each lender. The list includes a mix of FHA, VA and conventional loans.
Best Lenders for Low- and No-Down-Payment Mortgages
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| Learn more | ||||
|---|---|---|---|---|
5.0 /5 | 620 | 3.5% | ||
5.0 /5 | 580 | 3.5% | Learn moreat Pennymac at Pennymac | |
Low rates | 620 | 0% | Learn moreat Veterans United at Veterans United | |
 New American Funding: NMLS#6606 Top 3 most visited 🏆 Learn moreat New American Fundingat New American Funding | 580 | 3% | Top 3 most visited 🏆 Learn moreat New American Fundingat New American Funding | |
620 | 1% | Learn moreat Rocket Mortgage, LLC at Rocket Mortgage, LLC | ||
5.0 /5 | 620 | 0% | Top 3 most visited 🏆 Learn moreat Guaranteed Rateat Guaranteed Rate | |
4.0 /5 | 620 | 0% | Learn moreat Northpointe at Northpointe |
- Offers government-backed loans and some harder-to-find products, such as construction loans and specialty mortgages for pilots.
- Offers low rates and fees compared with other lenders, according to the latest Federal data.
- Displays customized rates, with fee estimates, without requiring contact information.
- HELOCs and construction-to-permanent loans are available only in the Kansas City metro area.
- Offers a wide variety of loan products, including government-backed and refinance options.
- Displays custom rate quotes based on home value, down payment or equity, ZIP code and credit score range.
- “Lock & Shop” lets you secure a rate for up to 60 days, even if you don’t have a purchase contract yet.
- Origination fees are on the higher end, according to the latest federal data.
- Doesn't offer home equity lines of credit or renovation loans.
- Offers 24/7 customer service over the phone.
- Offers a free credit counseling service.
- Mortgage rates are on the low side, according to the latest federal data.
- Parent company’s mortgage rates are on the higher side, according to the latest federal data.
- Does not offer second mortgage options like home equity loans or HELOCs.
New American Funding: NMLS#6606
580
3%
- Offers a wide variety of purchase and refinance mortgages with an emphasis on helping underserved communities.
- Its home equity line of credit can be used for an owner-occupied or second home.
- Has a program to enable buyers to make cash offers.
- Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
- Mortgage origination fees tend to be on the high end.
- Personalized mortgage rates are not available on the website without providing contact information.
Rocket Mortgage, LLC: NMLS#3030
620
1%
- Streamlined online process with document and asset retrieval capabilities, as well as the ability to edit your preapproval letter.
- Offers the option to work with loan officers by phone if desired.
- Largest FHA lender in the nation.
- Getting a customized interest rate requires a credit check, which can affect your credit score.
- Origination fees are on the high side compared with other lenders, according to the latest federal data.
- Doesn't offer home equity lines of credit.
- Displays detailed sample rates for many of its loan products.
- Offers a wide variety of loans, including jumbo and interest-only products.
- Offers low rates compared with other lenders, according to the latest federal data.
- Doesn't offer home equity loans.
- A full slate of loan offerings.
- Offers a no-down-payment loan with a shorter repayment term that helps accelerate home equity accumulation.
- Digital conveniences include a mobile app.
- You’ll need to provide contact information or speak to a loan officer for customized mortgage rates.
- Origination fees are on the high side, according to the latest data.
- Multiple loans for those who are renovating or building a home, including loans with interest-only payments during construction.
- Offers home equity loans and lines of credit.
- Offers down payment assistance and loans for underserved borrowers, including ITIN loans and loans with flexible qualifications in certain communities.
- Interest rates are on the low side relative to other lenders, according to the latest federal data.
- Borrowers can enter their information (including their desired loan amount, down payment and zip code) into the lender’s Mortgage Quote Comparison tool and receive a customized rate quote.
- Home equity loans are not available in all locations served by Flagstar.
- In 2022, the lender was fined for violating laws regarding properties in flood zones.
- Offers several low-down-payment loan options, including FHA, VA, USDA and the PNC Community Loan.
- Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
- Mortgage rates are lower than the industry average, according to the latest federal data.
- Jumbo loans available with 5% down payment.
- Doesn't offer renovation mortgages or home equity loans.
- In-person service is not available in every state.
- You’ll have to create an account or supply personal data to get answers by phone.
- A good selection of loan products, including government-backed FHA and VA mortgages.
- Provides “same-as-cash” loan that allows borrowers to compete with cash offers.
- Online application process is clear and simple to follow.
- Doesn't lend in all states.
- Website doesn’t provide customized mortgage rates.
- Lender fees are on the high side, according to the latest federal data.
- Offers a wide variety of loan options, including construction loans, programs for early career doctors, a wide variety of jumbo loans and home equity lines of credit.
- Proprietary grant program can help borrowers afford down payment and closing costs.
- Mortgage rates are lower than industry average, according to the latest federal data.
- Customized rates aren't available online without contacting the lender.
- For borrowers who prefer to apply in person, branches are limited mostly to the South and East.
- Mortgages aren’t available in all 50 states.
- Offers a full line of conventional and government loan products.
- Provides home equity loans and lines of credit.
- Allows borrowers to apply and track their loan's progress online.
- No personalized mortgage rates available online.
- Published mortgage rates assume an above-average credit score.
- Offers specialty loans, such as construction and renovation loans and loans for second homes and investment properties.
- Participates in first-time home buyer assistance programs in Illinois, Indiana and Wisconsin.
- Sample rates for some loan products are available only by contacting a loan officer.
- Physical locations aren't available in all states.
Wells Fargo: NMLS#399801
620
3%
- Sample rates clearly posted for various loan products.
- Offers a wide variety of loan types and products, including options for borrowers who work for themselves and those without Social Security numbers.
- Mortgage rates tend to be on the low side compared with other lenders, according to the latest federal data.
- Home loans business is broadly focused on bank customers.
- Doesn’t offer home improvement loans, or home equity loans or lines of credit.
- Scandals and government actions have damaged consumer trust in recent years.
Pros and cons: Low- and no-down-payment home loans
The pros: You can reach your goal of homeownership more quickly.
If you’re struggling with how to save for a down payment, you don't have to wait months or years until you have a large amount of cash saved.
When you become a homeowner sooner, you can start building home equity.
The cons: Low- and no-down-payment mortgages include extra expenses, and you start with less equity.
Conventional loans with down payments of less than 20%, along with FHA and USDA loans, require buyers to pay for mortgage insurance, which protects the lender in case the borrower defaults. VA loans have a one-time VA funding fee.
Your interest rate and monthly mortgage payment could also be higher with a low-down-payment mortgage.
A low- or zero-down-payment mortgage means you will start your homeownership journey with little to no equity in the home. If your home declines in value, you can end up owing more than the property is worth.
Credit score requirements for low- or no-down-payment mortgages
FHA loans: To qualify for a 3.5% payment on an FHA loan, you’ll need at least a 580 credit score. With a score between 500 and 579, you’ll need a 10% down payment. (See our list of best FHA loans for bad credit.)
Conventional loans: On low-down-payment conventional loans, a 620 score or better is generally required. Some conventional loans, such as HomeReady and Home Possible, are geared to low-income borrowers.
VA loans: VA loans cater to borrowers with military experience, or the eligible spouses of veterans or service members. The required credit score for VA loans varies by lender, but many ask borrowers to have at least a 620 or have other qualifications.
USDA loans: USDA loans are for buyers in rural and some suburban areas. Applicants with credit scores of 640 and higher can qualify for streamlined processing. Those with lower scores have to go through a more rigorous underwriting process. Applicants with no credit score or limited credit histories can qualify for USDA loans with nontraditional credit information, such as rental and utility payments.
More from NerdWallet
Last updated on November 3, 2023
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 50 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 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 of 2023
- NBKC: Best for FHA loans
- Pennymac: Best for FHA loans
- Veterans United: Best for VA loans
- New American Funding: Best for customer satisfaction
- Rocket Mortgage, LLC: Best for conventional loans
- Guaranteed Rate: Best for USDA loans
- Northpointe: Best for USDA loans
- Flagstar: Best for overall mortgage experience
- PNC: Best for first-time home buyers
- Network Capital: Best for borrowers with weaker credit
- Truist: Best for variety of loan types
- US Bank: Best for variety of loan types
- Wintrust Mortgage: Best for government-backed loans overall
- Wells Fargo: Best for home buyer assistance
Frequently asked questions
- What is the lowest down payment for a mortgage?
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.
- Are there income limits on no-down-payment mortgages?
Sometimes, but not always. Some 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.
- Which loan programs do not require a down payment or private mortgage insurance?
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.
- Do I have to be a first-time home buyer for a low- or no-down-payment mortgage?
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.
