Mortgages
Best Low Down Payment Mortgages
Saving 20% down can take a decade that the housing market will not wait for. These are the lenders we rank highest for buying with 3.5%, 3%, or even nothing down.
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How we ranked these: We ranked every low-down-payment-tagged lender in our database by our overall methodology score, which weighs rates and fees, approachability, and process.
Last updated June 2026
Questions, answered
What are my options below 20% down?
Conventional 97 loans take 3% down, FHA takes 3.5% with more flexible credit, and VA and USDA loans go to zero down for eligible borrowers. Each carries some form of mortgage insurance or funding fee. That is the price of the smaller down payment.
How much does mortgage insurance add to the payment?
Typically 0.3% to 1.5% of the loan amount per year depending on your down payment and credit. Roughly $75 to $375 a month on a $300,000 loan. Conventional PMI drops off once you reach 20% equity. FHA insurance usually sticks for the life of the loan unless you refinance.
Is it better to wait and save a bigger down payment?
Your call. Depends on your market and rent. If home prices and rents are rising faster than you can save, buying sooner with a smaller down payment often wins despite the insurance cost. Run both scenarios with real numbers instead of defaulting to the 20% rule.