Home sweet home nominated t20 bxy K7 X

Low Down Payment

Saving enough money for a down payment can be one of the biggest barriers to homeownership for first-time homebuyers. The truth is, you have options when it comes to your down payment amount.

No Down Payment Mortgage Programs

While many people think that the standard down payment amount is 20%, you can actually get a home for less money out-of-pocket. There are many low or even no down payment mortgage options available to help make your dream of homeownership a reality.

VA Mortgage Loans


The Department of Veteran Affairs offers no down payment loans to active duty military, veterans, and their spouses. VA loans are an excellent option for eligible borrowers since they don’t require any monthly mortgage insurance. However, VA loan borrowers may have to pay a one-time funding fee that can be rolled into the loan cost.

USDA Loans

USDA loans offer 100% financing for lower-income home buyers purchasing a home in qualifying rural areas, which makes them a great option for home buyers looking for a no or low down payment loan. Backed by the U.S. Department of Agriculture, borrowers aren’t required to make a down payment, but you will be responsible for a 1% guarantee fee that can be rolled into closings costs as well as monthly mortgage insurance.

To qualify, you’ll need to be purchasing a home in a USDA-eligible area. Use the USDA’s website to determine if your home qualifies. Additionally, you must live in the home as your primary residence. You’ll also need to meet income requirements for the area. Since USDA loans are targeted toward moderate earners, borrowers must not earn more than 115% of the medium income for the geographic region in which they are buying a home.

FHA Loans


FHA loans are insured by the Federal Housing Administration, which provides protection for the lender in case the borrower defaults on the loan. Because of this, borrowers can qualify for a loan with just 3.5% down. Be aware that you’ll need to pay mortgage insurance as an upfront fee at closing and as part of your monthly mortgage payment.

Eligibility Requirements for an FHA Loan:

  • Must meet minimum credit score requirements and at least 3.5% down payment
  • The purchased property must be your primary residence
  • The property must meet the FHA’s minimum property standards


Available through the Colorado Housing and Financing Authority, (CHFA) loans can help Colorado home buyers achieve their dream of home ownership by offering flexible loan programs to any Coloradan. Home buyers using a CHFA first mortgage loan program to finance their home are eligible to use CHFA assistance options to help with the down payment and/or closing costs. They offer down payment assistance grants that can provide up to 3% of your mortgage with no repayment required. Another option is a second mortgage loan that will give you up to 4% of your first mortgage, but you will eventually need to repay it once you’ve paid off your first mortgage or if you sell or refinance the home.