Purchasing a home is a dream for many, but the cost of a down payment can be one of the biggest hurdles. Fortunately, there are mortgage options available with low- and no-down-payment requirements, making homeownership more accessible. In this article, we will explore some of the best low- and no-down-payment mortgage lenders available in 2025, discuss the benefits and requirements of these loans, and provide tips on how to choose the right mortgage lender for your needs.
Understanding Low- and No-Down-Payment Mortgages
A down payment is the initial amount you pay upfront when purchasing a home, usually expressed as a percentage of the home’s total purchase price. Typically, a 20% down payment is expected, but this can be challenging for many first-time homebuyers. That’s where low- and no-down-payment mortgages come into play.
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Low-Down-Payment Mortgages: These loans require a smaller upfront payment than traditional mortgages, usually less than 20%. Depending on the loan type, down payments can range from 3% to 10%.
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No-Down-Payment Mortgages: These loans do not require any down payment at all, making them particularly appealing for first-time buyers or individuals with limited savings.
Several government-backed programs, including FHA, VA, and USDA loans, offer options for low- and no-down-payment mortgages. Additionally, many private lenders also provide competitive options.
Best Lenders Offering Low- and No-Down-Payment Mortgages
Several top lenders are known for their low- and no-down-payment mortgage options. These lenders offer a range of programs, competitive interest rates, and other benefits. Here are the best mortgage lenders in 2025:
1. Navy Federal Credit Union: Best for VA Loans
Overview: Navy Federal Credit Union is a top choice for active-duty service members, veterans, and their families. The credit union offers VA loans that require no down payment, making it an excellent option for eligible military personnel and their families.
Key Features:
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No down payment: VA loans typically require zero down payment.
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Competitive interest rates: Navy Federal offers low rates and flexible terms.
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No private mortgage insurance (PMI): VA loans do not require PMI, which can save you money on your monthly payment.
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Eligibility: Must be a member of the Navy Federal Credit Union, which includes military personnel and their immediate families.
Why Choose Navy Federal Credit Union? Navy Federal’s VA loan program is one of the best in the industry, offering flexible terms and no down payment. This is a great option for eligible veterans who want to buy a home without worrying about upfront costs.
2. USAA: Best for Military Members and Veterans
Overview: USAA is another top contender for low- and no-down-payment loans, especially for military personnel and their families. They offer competitive VA loans with no down payment requirements, making them a solid choice for eligible buyers.
Key Features:
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No down payment: Like Navy Federal, USAA offers VA loans with zero down payment.
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No PMI: USAA’s VA loans do not require PMI, further lowering monthly costs.
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Competitive rates: USAA offers competitive interest rates, especially for military members.
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Additional services: In addition to mortgages, USAA offers various insurance and financial services.
Why Choose USAA? USAA is one of the most trusted names in the military community, known for providing exceptional customer service and low-cost mortgage options, especially through their VA loan program.
3. Quicken Loans (Rocket Mortgage): Best for Online Convenience
Overview: Quicken Loans, now known as Rocket Mortgage, is a highly-rated mortgage lender that makes the home loan process fast and convenient. Rocket Mortgage offers a variety of mortgage options, including FHA loans with low down payments, making them ideal for first-time homebuyers.
Key Features:
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FHA loans: Low down payment options starting at 3.5%.
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VA loans: No down payment required for qualified veterans.
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Online application: Rocket Mortgage’s fully online application process makes it easy to apply from anywhere.
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Fast approval process: They offer a quick and user-friendly approval process, which is ideal for those who need speed.
Why Choose Rocket Mortgage? Rocket Mortgage is a strong choice for tech-savvy homebuyers who want a simple, online mortgage application process. The lender’s streamlined service and variety of loan options make it an excellent choice for those looking for convenience and flexibility.
4. Wells Fargo: Best for First-Time Homebuyers
Overview: Wells Fargo is one of the largest banks in the U.S. and offers a range of mortgage products, including low-down-payment options. Their “Your First Mortgage” program provides first-time homebuyers with the opportunity to purchase a home with as little as 3% down.
Key Features:
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Low-down-payment options: The “Your First Mortgage” program allows for as little as 3% down.
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Homebuyer education: Wells Fargo provides homebuyer education resources to help you navigate the process.
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Flexible terms: The lender offers a variety of mortgage types, including fixed-rate and adjustable-rate options.
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Special programs: They offer specific programs tailored to first-time buyers.
Why Choose Wells Fargo? Wells Fargo’s first-time homebuyer programs are a great option for those who may not have a large down payment but still want to purchase their first home. The bank’s comprehensive support and customer service make it easy for new buyers to get started.
5. Guaranteed Rate: Best for FHA Loans
Overview: Guaranteed Rate is a well-known lender offering FHA loans with low down payment requirements. FHA loans require as little as 3.5% down, making them an appealing choice for buyers with limited savings or less-than-perfect credit.
Key Features:
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FHA loans: Offers FHA loans with down payments as low as 3.5%.
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Competitive interest rates: They offer competitive rates for both FHA and conventional loans.
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Excellent customer service: Guaranteed Rate is known for its top-notch customer service and dedicated loan officers.
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Online tools: They offer easy-to-use tools for applying and tracking your mortgage application.
Why Choose Guaranteed Rate? For buyers looking for an FHA loan, Guaranteed Rate is an excellent option. They provide an efficient process, competitive rates, and great customer service, making it an ideal choice for first-time buyers.
6. SoFi: Best for Digital-First Borrowers
Overview: SoFi is a fintech company that has made waves in the mortgage industry by offering a completely online mortgage experience. SoFi offers competitive home loan products, including low-down-payment conventional loans starting at 3%.
Key Features:
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Low down payment: Conventional loans with as little as 3% down.
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No PMI: For some loans, SoFi does not require private mortgage insurance (PMI), which can save borrowers money.
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Completely online: The process is fully online, making it ideal for tech-savvy buyers.
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No fees: SoFi offers no origination fees, which can make your mortgage more affordable.
Why Choose SoFi? SoFi is perfect for buyers who prefer an all-digital experience. With a streamlined online process, competitive rates, and no PMI in some cases, it’s an excellent choice for first-time buyers.
Tips for Choosing the Right Lender
When choosing a mortgage lender for a low- or no-down-payment mortgage, there are several factors to consider:
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Eligibility requirements: Ensure that you meet the lender’s eligibility criteria for low- or no-down-payment loans.
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Loan types: Different lenders offer different loan products, such as FHA, VA, or conventional loans with low down payments. Choose the loan that best fits your needs.
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Interest rates: Compare interest rates across lenders to ensure you’re getting the best deal.
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Customer service: Good customer service is crucial during the mortgage process. Look for a lender with a reputation for helpful, responsive service.
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Additional fees: Always check for hidden fees, such as origination fees, that can increase your total loan cost.
Conclusion
Low- and no-down-payment mortgages are excellent options for homebuyers looking to break into the housing market without a large upfront cost. Whether you’re a first-time homebuyer, a veteran, or someone looking to purchase with little savings, there are plenty of great lenders offering affordable mortgage options.
By exploring lenders like Navy Federal Credit Union, USAA, Rocket Mortgage, Wells Fargo, Guaranteed Rate, and SoFi, you can find the right low- or no-down-payment mortgage that suits your financial goals and homeownership dreams.
Take the time to compare lenders, mortgage types, and interest rates to ensure you’re making the best decision for your financial future. With the right mortgage, your dream home is within reach.