Best lenders for low- and no-down payment mortgages in 2024

If you meet eligibility requirements, it’s possible to get a low- or no-down payment mortgage. Bankrate examined several mortgage lenders to uncover the best for these types of loans. Here is our guide to the best low- and no-down payment mortgage lenders in 2024.

Best low- and no-down payment mortgage lenders

PenFed Credit Union

Learn morein our Bankrate review

• Lender details

  • Availability: All U.S. states

  • Loans offered: Conventional, jumbo, FHA, VA

  • Credit requirements: 650 for conventional loans, 700 for jumbo loans, 620 for FHA loans

  • Down payment minimum: 3% for conventional loans, 3.5% for FHA loans, none for VA loans

  • Where to find: Branch locations and online

• Pros and cons

  Pros

  • No lender fees

  • Offers lender credits up to $2,500

  Cons

  • Higher minimum credit score requirements

  • No USDA loans

Veterans United Home Loans

Learn morein our Bankrate review

• Lender details

  • Availability: All U.S. states

  • Loans offered: Conventional, jumbo, FHA, VA, USDA

  • Credit requirements: 620 for conventional and VA loans

  • Down payment minimum: 3% for conventional loans, 3.5% for FHA loans, none for VA and USDA loans

  • Where to find: Branch locations and online

• Pros and cons

  Pros

  • Specializes in VA loans

  • 24/7 customer service over the phone

  • Free credit counseling for service members

  Cons

  • Doesn’t offer HELOCs or home equity loans

  • Limited number of branches

U.S. Bank

Learn morein our Bankrate review

• Lender details

  • Availability: All U.S. states

  • Loans offered: Conventional, jumbo, FHA, VA, USDA

  • Credit requirements: 620 for conventional loans, 740 for jumbo loans

  • Down payment minimum: 5% for conventional loans, 3.5% for FHA loans, none for VA and USDA loans

  • Where to find: Branch locations and online

• Pros and cons

  Pros

  • Several down payment and closing cost assistance programs

  • Discounts for banking customers

  Cons

  • Requires a higher credit score to qualify

  • Refinance timeline can be lengthy

Old National Bank

Learn morein our Bankrate review

• Lender details

  • Availability: All U.S. states

  • Loans offered: Conventional, jumbo, FHA, VA, USDA

  • Credit requirements: 620 for conventional loans, 640 for FHA loans, 680 for VA loans

  • Down payment minimum: Undisclosed

  • Where to find: Branch locations and online

• Pros and cons

  Pros

  • Branches plus online banking

  • First-time homebuyer and down payment/closing cost assistance programs in some states

  • Special loan programs for first responders, professors and physicians

  Cons

  • Branch locations limited to five states

Wells Fargo

Learn morein our Bankrate review

• Lender details

  • Availability: All U.S. states

  • Loans offered: Conventional, jumbo, FHA, VA, USDA

  • Credit requirements: 620 for conventional loans

  • Down payment minimum: 3% for conventional loans, 3.5% for FHA loans, none for VA and USDA loans

  • Where to find: Branch locations and online

• Pros and cons

  Pros

  • Displays mortgage rates online

  • Massive branch network

  • Will consider non-traditional credit references in application process

  • Offers low-down payment options to assist lower-income borrowers

  Cons

  • Dialed back its mortgage offerings

  • No longer offers HELOCs

  • Below-average customer satisfaction scores and negative past customer reviews

Better

Learn morein our Bankrate review

• Lender details

  • Availability: All U.S. states

  • Loans offered: Conventional, FHA, VA

  • Credit requirements: 620 for conventional loans, 580 for FHA loans

  • Down payment minimum: 3% for conventional loans, 3.5% for FHA loans, none for VA loans

  • Where to find: Online

• Pros and cons

  Pros

  • Completely digital process, with daily online rates, three-minute preapprovals and hybrid closings

  • No fees

  • Price Guarantee matches or beats competitor offers

  Cons

  • No branch locations

  • No home equity loans or USDA loans

Mr. Cooper

Learn morein our Bankrate

• Lender details

  • Availability: All U.S. states

  • Loans offered: Conventional, FHA, VA

  • Credit requirements: 620 for conventional loans, 580 for FHA loans, 600 for VA loans

  • Down payment minimum: 3% for conventional loans, 3.5% for FHA loans, none for VA loans

  • Where to find: Online

• Pros and cons

  Pros

  • Available in all states, Puerto Rico and the U.S. Virgin Islands

  • App to track loan status and make payments

  Cons

  • No branch locations; no USDA loans

Rocket Mortgage

Learn morein our Bankrate review

• Lender details

  • Availability: All U.S. states

  • Loans offered: Conventional, jumbo, FHA, VA

  • Credit requirements: 620 for conventional loans, 680 for jumbo loans, 580 for FHA and VA loans

  • Down payment minimum: 3% for conventional loans, 10%-15% for jumbo loans, 3.5% for FHA loans, none for VA loans

  • Where to find: Online

• Pros and cons

  Pros

  • Superior customer service, including chat and screen-sharing

  • Up to $10,000 rebate for buying and selling through affiliate Rocket Homes

  Cons

  • No branch locations; no USDA loans

Pros and cons of low- and no-down payment home loans

Pros

• Gets you out of renting and into homeownership sooner

• Makes buying a home feasible even for those with little savings or assets

• Allows you to reserve your savings (if applicable) for emergencies or financial goals

Cons

• Less money down means you’re borrowing more, which translates to higher monthly mortgage payments

• Limited equity upfront so you can’t use it in an emergency, and if the market turns, you could owe more than the home’s worth

• Low-down payment loans require mortgage insurance

• Low-down payment loans could come with higher interest rates

• No-down payment loans come with extra fees

• Some sellers consider less money down a negative, which can be a disadvantage in a hot market

Types of low-down payment mortgages

Types of no-down payment mortgages

FAQ about low- and no-down payment mortgages

• What is the lowest down payment for a mortgage?

  Of the mortgage types that require a down payment, the lowest possible amount is 3 percent of the home’s purchase price. This is the minimum requirement for a conventional loan.
  
  Note: Some lenders advertise 1 percent-down mortgages. These are 3 percent conventional loans that only require the borrower to put down 1 percent; the lender pays the other 2 percent as a grant.

• Do you have to be a first-time buyer for a low- or no-down payment mortgage?

  You don’t have to be a first-time homebuyer to qualify for a low- or no-down payment mortgage. You’ll simply need to meet the lender’s requirements around credit score, debt-to-income (DTI) ratio and other factors.

• Methodology

  To determine the best lenders for low- and no-down payment mortgages, Bankrate periodically evaluates more than 80 lenders for factors relating to affordability, availability and borrower experience, assigning each a Bankrate Score out of five stars. The best lenders for low- and no-down payment mortgages generally have a Bankrate Score of 4 stars or higher. Learn more about our methodology.