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Best lenders for low- and no-down payment mortgages in 2025

Erik J. Martin Jeff Ostrowski Laurie Richards
Written by
Erik J. Martin
and
Jeff Ostrowski,
Edited by
Laurie Richards
Published on January 27, 2025 | 3 min read

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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 2025.

Best low- and no-down payment mortgage lenders

Lender Credit requirements Down payment minimum Bankrate Score
Veterans United Home Loans 620 for conventional and VA loans 3% for conventional loans, 3.5% for FHA loans, none for VA and USDA loans 4.9
U.S. Bank 620 for conventional loans, 640 for most FHA loans, 740 for most jumbo loans (will approve some borrowers with scores as low as 660) 3% for conventional loans, 3.5% for FHA loans, none for VA loans 4.8
Wells Fargo 620 for conventional loans 3% for conventional loans, 3.5% for FHA loans, none for VA and USDA loans 4.8
Bison State Bank 620 for conventional loans, 580 for FHA and VA loans 3% for conventional loans, 3.5% for FHA loans, none for VA and USDA loans 4.6
New American Funding 620 for conventional loans 3% for conventional loans, 3.5% for FHA loans, none for VA loans and USDA loans 4.6
Old National Bank 620 for conventional loans Undisclosed 4.5
Rate 620 for conventional loans 3% for conventional, 3.5% for FHA loans, none for VA loans 4.5
Veterans United Home Loans

Veterans United Home Loans

Learn more in our Bankrate review
    • Availability: All U.S. states
    • Loans offered: Conventional, jumbo, FHA, VA, USDA, refinancing
    • 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
U.S. Bank

U.S. Bank

Learn more in our Bankrate review
    • Availability: All U.S. states
    • Loans offered: Conventional, jumbo, FHA, VA, refinancing and more
    • Credit requirements: 620 for conventional loans, 640 for most FHA loans, 740 for most jumbo loans (will approve some borrowers with scores as low as 660)
    • Down payment minimum: 3% for conventional loans, 3.5% for FHA loans, none for VA loans
    • Where to find: Branch locations and online
Wells Fargo logo

Wells Fargo

Learn more in our Bankrate review
    • Availability: All U.S. states
    • Loans offered: Conventional, jumbo, FHA, VA, USDA, refinancing and more
    • 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
bison state bank logo

Bison State Bank

Learn more in our Bankrate review
    • Availability: All U.S. states
    • Loans offered: Conventional, jumbo, FHA, VA, USDA, refinancing and more
    • Credit requirements: 620 for conventional loans, 580 for FHA and VA loans
    • Down payment minimum: 3% for conventional loans, 3.5% for FHA loans, none for VA loans and USDA loans
    • Where to find: Branch locations and online
  • Green circle with a checkmark inside
    Pros
    • Customized online quote tool
    • No origination or hidden fees
    • Available nationwide
    Red circle with an X inside
    Cons
    • Standard rate lock period is 30 days
    • Not as many contact methods as other lenders
New American Funding

New American Funding

Learn more in our Bankrate review
    • Availability: All U.S. states
    • Loans offered: Conventional, jumbo, FHA, VA, USDA, refinancing and more
    • 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: Branches and online
Old National Bank

Old National Bank

Learn more in our Bankrate review
    • Availability: All U.S. states
    • Loans offered: Conventional, jumbo, FHA, VA, USDA, refinancing and more
    • Credit requirements: 620 for conventional loans
    • Down payment minimum: Undisclosed
    • Where to find: Branch locations and online
Rate

Rate

Learn more in our Bankrate review
    • Availability: All U.S. states
    • Loans offered: Conventional, jumbo, FHA, VA, refinancing and more
    • Credit requirements: 620 for conventional loan
    • Down payment minimum: 3% for conventional, 3.5% for FHA loans, none for VA loans
    • Where to find: Branches and online

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

Conventional 97 loans HomeReady/Home Possible loans HomeOne loans FHA loans
3% down 3% down 3% down 3.5% down
620 credit score Flexible underwriting Flexible underwriting 580 credit score (500-579 score with 10% down)
Income limits Income limits No income limits No income limits
First-time homebuyers First-time and repeat homebuyers First-time homebuyers First-time and repeat homebuyers

Types of no-down payment mortgages

VA loans USDA loans
No money down No money down
Flexible underwriting Flexible underwriting
No income limits Income limits
Eligible service members, veterans and spouses Borrowers in eligible locations

FAQ about low- and no-down payment mortgages

  • 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.
  • 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.
  • To determine the best low and no down payment mortgage lenders, Bankrate periodically evaluates more than 75 lenders for factors relating to affordability, availability and borrower experience, assigning each a Bankrate Score out of five stars. The best low and no down payment mortgage lenders generally have a Bankrate Score of 4.5 stars or higher. Learn more about our methodology.
Written by
Erik J. Martin Arrow Right Icon
Contributor, Personal Finance
Erik J. Martin is a Chicago area-based freelance writer/editor whose articles have been featured in AARP The Magazine, Reader's Digest, The Costco Connection, The Motley Fool and other publications. He often writes on topics related to real estate, business, technology, health care, insurance and entertainment.
Co-written by
Jeff Ostrowski Arrow Right Icon
Principal Writer, Home Lending
Jeff Ostrowski covers mortgages and the housing market. Before joining Bankrate in 2020, he spent more than 20 years writing about real estate, business, the economy and politics.