Low Down Payment Programs

Is saving up for a down payment holding you back from purchasing a home? Don’t let it. Summit Mortgage Company has access to low down payment loan options, along with down payment assistance loan and grant programs, to help first-time or low-to-moderate income homebuyers achieve their goals.

Pros:

You can purchase a home with less than 20% down payment
Some government programs are available with 0% down payment
Some options will allow credit scores down to 580
Down payment assistance loans/grants may offer options with as little as $1,000 out of pocket at closing

Cons:

You may need private mortgage insurance to protect the lender
Some programs require upfront mortgage insurance or funding fees that may lower the home’s equity when you close
There may be an additional lien on the property with unique qualifying conditions
Qualifications may include attending a homebuyer education course
Down payment assistance programs require additional paperwork, underwriting requirements, and fees associated with using their funds
When using down payment assistance, refinancing can be difficult due to the additional lien on the property, the requirements of that lien, and the reduced equity position

Best for:

Homebuyers with less than 5% down
First-time homebuyers who don’t have equity from a previous home sale
People with moderate incomes, veterans, and properties in rural areas
First-generation homebuyers

How do low down payment programs work?

Government and conventional home loans are available with fixed- and adjustable-rate terms ranging from 10 to 30 years. These loans offer low down payment options and can be used to purchase or refinance a home. Many of these options can be combined with Down Payment Assistance (DPA) programs which help homebuyers cover the upfront costs of buying a home, including the down payment, closing costs, and prepaid taxes and insurance, typically due at closing.

Low Down Payment Programming Options

Conventional Loan:

3% down, may have first-time homebuyer requirements, minimum 620 credit score. Most programs are capped at a 50% debt-to-income ratio.

Federal Housing Authority (FHA) Loan:

3.5% down, minimum 580 credit score. Some borrowers may be able to go up to 57% debt to income. There is no first-time homebuyer requirement.

United States Department of Agriculture (USDA) Loan:

0% down, credit reviewed on a case-by-case basis considering the whole credit profile vs. just the scores for qualifying. Property location eligibility is required, and income limitations apply.

Veteran Administration (VA) Loan:

0% down, credit reviewed, and debt to income reviewed on a case-by-case basis to assess the complete profile of the borrower. Must have veteran home loan benefit eligibility in place to qualify.

Down Payment Assistance Programs

Most programs require $1,000 of the customer’s funds, which can be applied to earnest money, appraisal, inspection, or a down payment.

Low down payment, assistance loans and grants with monthly or deferred payment options.

0%

Many programs require little to no down payment
$5–25k

Average amount of down payment assistance
580

Minimum credit score on some programs

Check Rate

Are low down payment programs right for my financial situation?

Want to see if a low down payment program is right for you? The resources below will help you gauge your financial situation. Of course, working directly with a Summit Mortgage loan officer is the best way to fully assess your options and determine if today is the right time to explore a low down payment loan. Summit Mortgage has the expertise and programs to support first-time homebuyers and anyone looking to minimize their down payment.

Calculate the numbers and check your credit status.

Most down payment assistance programs have limitations on who is eligible. The criteria may include:

Geographical location of the home
Geographical location you live in
Low- to moderate-income
First-time homeowner
Proof of need-to-use program (limited assets for closing, high debt-to-income ratios, etc).

Pro-Tip: Some down payment assistance programs have limited funds. Act fast when you identify a program that might be a fit. You should also contact the administrator to ensure funds are available—especially grant funds.

Ready for an expert opinion? A Summit Mortgage loan officer can help you determine if today is the right time for a home improvement loan.

Schedule a free consultation

A local Summit Mortgage loan officer has the expertise to guide your decision-making process, answer questions, and get you approved with the best down payment assistance program for your unique situation. Find a loan officer who’s right for you.

Calculate your potential savings

Use our mortgage calculator to estimate your monthly payment by adjusting factors like purchase price, down payment, interest rate, and term. Then, connect with a loan officer to explore the options that fit your budget.

How do I apply for a low down payment loan?

Applying for a low down payment loan is easy. Take the first step using our Quick Start Form. After submitting it, Summit Mortgage will connect you with a loan officer in your area that matches your unique needs. They’ll review your situation and create a personalized plan to help you prepare for homeownership.

Still have questions about the application process? Our step-by-step application checklist provides a clear guide to what you’ll need once you begin working with a loan officer.

Get Started

Common low down payment program questions

Does my state have specific low down payment or down payment assistance programs?

Maybe. Most low down payment loan programs are supported nationally. However, down payment assistance programs may be unique to specific states, counties, or cities. With so many options available, it’s important to connect with a Summit Mortgage loan officer today to help you find and apply for the programs available to you.
Are there any no-down payment options?

Yes, some programs offer a 0% down payment, while others require a larger down payment but may allow you to combine them with down payment assistance to lower the amount due at closing. Connect with a local Summit Mortgage loan officer to explore your options.
Do low down payment assistance programs have restrictions on the type of housing?

Yes, many low down payment assistance programs restrict the type of housing. These programs often target specific types of homes to ensure that the assistance supports affordable and sustainable housing. For example, the restrictions may include whether the home is a primary residence, a single-family or multifamily home, its condition, and others.
Do all lenders work with low down payment and down payment assistance programs?

Summit Mortgage does, but not all lenders offer low down payment or down payment assistance programs. In recent years, many lenders have shied away from offering down payment assistance loans because they create a higher risk for the lender and tend to require more paperwork and collaboration with the program administrators.
Can you combine down payment assistance programs?

Each down payment assistance program is unique, with its own rules and requirements. Some allow ‘stacking’ or combining multiple programs, but it’s important to note that most require a lien against the property and may have additional restrictions or fees.
Are there specific down payment programs for seniors or people with disabilities?

There are a variety of programs designed to help specific groups, such as seniors, individuals with disabilities, first-generation homebuyers, and those with low to moderate incomes, among others.

Each program has its own set of guidelines and rules, separate from the first mortgage lien. It’s essential to speak with a loan officer who regularly works with these programs to identify your options.

Is a low down payment or down payment assistance program right for you?

Low down payment programs can open up the option to purchase a home much sooner than some buyers may have thought. Some programs will allow you to combine low down payment programs with down payment assistance programs and significantly reduce the funds needed at closing. Just remember some programs have restrictions on income, geographical location, veteran status, first-time homebuyer status, etc. It’s best to speak with a local Summit Mortgage loan officer to explore your options.

Schedule a free consultation with our mortgage experts

Summit Mortgage employs some of the most experienced loan officers in the country. Our in-depth knowledge of low down payment programs, combined with our commitment to understanding your goals, will ensure your homebuying experience is as smooth and rewarding as possible. Find a loan officer near you.

Next steps to find your home loan

Congratulations, you’re on your way to finding which low down payment programs may be available to you. If you’re ready to speak with a local expert, use our Quick Start Form to connect with a Summit Mortgage Loan Officer. They can help you find the program that will meet your needs.

Not quite ready yet? That’s okay! Check out our resources below to start preparing for the next steps.

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