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Learn if you qualify for a zero-down home loan and compare lenders that offer low-down-payment mortgages.
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Last updated on March 4, 2024
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✅ Fact checked and reviewed
Edited by
✅ Fact checked and reviewed
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Saving for a down payment is one of the biggest obstacles to homeownership. Can you buy a house with no money down? It’s possible, but the conditions to qualify for a no-down-payment mortgage are highly specific. If you aren’t eligible, it might be easier to qualify for a low-down-payment mortgage.
No-down-payment loans include VA loans, backed by the Department of Veterans Affairs, and USDA loans, guaranteed by the U.S. Department of Agriculture. VA loans are available to current and veteran service members and eligible spouses, and USDA loans are available for people buying property in specific rural and suburban areas.
However, even a no-down-payment mortgage may still require some cash: You’ll likely have up-front expenses like fees, closing costs and mortgage insurance (or you might be able to roll them into your loan).
Low-down-payment mortgages include FHA loans, insured by the Federal Housing Administration, which require down payments as low as 3.5%. And even some of today's conventional loans allow down payments as low as 3%.
The lenders on this list offer home loans with no down payment (zero-down mortgages) and/or low-down-payment FHA or conventional loans.
The star ratings shown are specific to the product featured from each lender. The list includes a mix of FHA, VA and conventional loans.
Why trust NerdWallet
- 50+ mortgage lenders reviewed and rated by our team of experts.
- 40+ years of combined experience covering mortgages and financial topics.
- Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
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NerdWallet's mortgage content, including articles, reviews and recommendations, is produced by a team of writers and editors who specialize in home lending. Their work has appeared in The Associated Press, USA Today, The Washington Post, MarketWatch, Newsweek and many other national, regional and local publications. They have been cited in publications including The Wall Street Journal, and appeared on NerdWallet's "Smart Money" podcast as well as local TV and radio.
Why trust NerdWallet
- 50+ mortgage lenders reviewed and rated by our team of experts.
- 40+ years of combined experience covering mortgages and financial topics.
- Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
NerdWallet's mortgage content, including articles, reviews and recommendations, is produced by a team of writers and editors who specialize in home lending. Their work has appeared in The Associated Press, USA Today, The Washington Post, MarketWatch, Newsweek and many other national, regional and local publications. They have been cited in publications including The Wall Street Journal, and appeared on NerdWallet's "Smart Money" podcast as well as local TV and radio.
Best Lenders for Low- and No-Down-Payment Mortgages
Lender ▾ ▾ | NerdWallet Rating ▾ ▾ | Min. credit score ▾ ▾ | Min. down payment ▾ ▾ | Learn more |
|---|---|---|---|---|
NBKC: NMLS#409631 Top 3 most visited 🏆Learn moreat NBKC at NBKC | 5.0 /5 FHA loans Best for FHA loans | 620 | 3.5% | Top 3 most visited 🏆Learn moreat NBKC at NBKC |
Guaranteed Rate: NMLS#2611 Top 3 most visited 🏆Learn moreat Guaranteed Rate at Guaranteed Rate | 5.0 /5 Home loans overall Best for USDA loans | 620 | 0% | Top 3 most visited 🏆Learn moreat Guaranteed Rate at Guaranteed Rate |
Flagstar: NMLS#417490 LEARN MORE on NerdWallet | 5.0 /5 Home loans overall Best for overall mortgage experience | 620 | 3% | LEARN MORE on NerdWallet |
Pennymac: NMLS#35953 LEARN MORE on NerdWallet | 5.0 /5 FHA loans Best for FHA loans | 580 | 3.5% | LEARN MORE on NerdWallet |
PNC: NMLS#446303 LEARN MORE on NerdWallet | 5.0 /5 Home loans overall Best for first-time home buyers | 620 | 3% | LEARN MORE on NerdWallet |
Veterans United: NMLS#1907 Learn moreat Veterans United at Veterans United | 4.5 /5 VA loans Best for VA loans | 620 | 0% | Learn moreat Veterans United at Veterans United |
Network Capital: NMLS#11712 Learn moreat Network Capital at Network Capital | 4.5 /5 VA loans Best for borrowers with weaker credit | 560 | 0% | Learn moreat Network Capital at Network Capital |
Truist: NMLS#399803 LEARN MORE on NerdWallet | 4.5 /5 Home loans overall Best for variety of loan types | 620 | 3% | LEARN MORE on NerdWallet |
US Bank: NMLS#402761 LEARN MORE on NerdWallet | 4.5 /5 FHA loans Best for variety of loan types | N/A | 3.5% | LEARN MORE on NerdWallet |
Wintrust Mortgage: NMLS#449042 LEARN MORE on NerdWallet | 4.5 /5 VA loans Best for government-backed loans overall | N/A | 0% | LEARN MORE on NerdWallet |
New American Funding: NMLS#6606 Learn moreat New American Funding at New American Funding | 4.0 /5 Home loans overall Best for customer satisfaction | 580 | 3% | Learn moreat New American Funding at New American Funding |
Rocket Mortgage, LLC: NMLS#3030 Top 3 most visited 🏆Learn moreat Rocket Mortgage, LLC at Rocket Mortgage, LLC | 4.0 /5 Home loans overall Best for conventional loans | 620 | 1% | Top 3 most visited 🏆Learn moreat Rocket Mortgage, LLC at Rocket Mortgage, LLC |
Wells Fargo: NMLS#399801 LEARN MORE on NerdWallet | 4.0 /5 Home loans overall Best for home buyer assistance | 620 | 3% | LEARN MORE on NerdWallet |
at NBKC
NBKC: NMLS#409631
5.0
FHA loans
NerdWallet rating
Min. credit score
620
Min. down payment
3.5%
Why We Like It
Good for: borrowers who want low FHA mortgage rates and fees and an online experience with phone or chat support.
Pros
- Offers FHA purchase, streamline and cash-out refinance loans.
- Offers low rates and fees for FHA loans compared with other lenders, according to the latest federal data.
- Displays customized rates, with fee estimates, without requiring contact information.
Cons
- Branches for in-person service are limited to the Kansas City metro area.
Read Full Review
Learn moreat Guaranteed Rate
at Guaranteed Rate
Guaranteed Rate: NMLS#2611
5.0
Home loans overall
NerdWallet rating
Min. credit score
620
Min. down payment
0%
Why We Like ItGood for: borrowers seeking a solid variety of loan types and a robust online experience.
Pros
- Displays detailed sample rates for many of its loan products.
- Offers a generous selection of loans.
- Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
Cons
- Origination fees are higher than average, according to the latest federal data.
Read Full Review
LEARN MORE
on NerdWallet
Flagstar: NMLS#417490
5.0
Home loans overall
NerdWallet rating
Why We Like ItGood for: Borrowers who may benefit from Flagstar’s unique loan options, such as ITIN loans, loans for manufactured homes or physician loans.
Pros
- Multiple loans for those who are renovating or building a home, including loans with interest-only payments during construction.
- Offers home equity loans and lines of credit.
- Offers down payment assistance and loans for underserved borrowers, including ITIN loans and loans with flexible qualifications in certain communities.
- Interest rates are on the low side relative to other lenders, according to the latest federal data.
- Borrowers can enter their information (including their desired loan amount, down payment and zip code) into the lender’s Mortgage Quote Comparison tool and receive a customized rate quote.
Cons
- Home equity loans are not available in all locations served by Flagstar.
- In 2022, the lender was fined for violating laws regarding properties in flood zones.
Read Full Review
LEARN MORE
on NerdWallet
Pennymac: NMLS#35953
5.0
FHA loans
NerdWallet rating
Min. credit score
580
Min. down payment
3.5%
Why We Like ItGood for: borrowers who want to rate-shop online and lock in a rate while shopping for a home.
Pros
- Dedicates a significant portion of its business to FHA lending.
- Displays custom rate quotes based on home value, down payment, ZIP code and credit score range.
- “Lock & Shop” lets you secure a rate for up to 90 days, even if you don’t have a purchase contract yet.
- FHA interest rates are on the lower end, according to the latest federal data.
Cons
- Origination fees for FHA loans are on the higher end, according to the latest federal data.
- Doesn't offer FHA renovation loans.
Read Full Review
LEARN MORE
on NerdWallet
PNC: NMLS#446303
5.0
Home loans overall
NerdWallet rating
Min. credit score
620
Min. down payment
3%
Why We Like ItGood for: borrowers with low to moderate incomes or limited down payments, as well as home buyers seeking mortgages in higher-priced regions of the nation.
Pros
- Offers several low-down-payment loan options, including FHA, VA, USDA and the PNC Community Loan.
- Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
- Mortgage rates are lower than the industry average, according to the latest federal data.
- Jumbo loans available with 5% down payment.
Cons
- Doesn't offer renovation mortgages or home equity loans.
- In-person service is not available in every state.
- You’ll have to create an account or supply personal data to get answers by phone.
Read Full Review
Learn moreat Veterans United
at Veterans United
Veterans United: NMLS#1907
4.5
VA loans
NerdWallet rating
Min. credit score
620
Min. down payment
0%
Why We Like ItGood for: veterans, active-duty service members and eligible reservists looking for VA loans.
Pros
- Offers 24/7 customer service over the phone.
- Offers a free credit counseling service.
- Mortgage rates are on the low side, according to the latest federal data.
Cons
- Parent company’s mortgage rates are on the higher side, according to the latest federal data.
- Does not offer second mortgage options like home equity loans or HELOCs.
Read Full Review
Learn moreat Network Capital
at Network Capital
Network Capital: NMLS#11712
4.5
VA loans
NerdWallet rating
Min. credit score
560
Min. down payment
Why We Like ItGood for: borrowers looking for a lender with online convenience and mortgage banker assistance.
Pros
- A good selection of loan products, including government-backed FHA and VA mortgages.
- Provides “same-as-cash” loan that allows borrowers to compete with cash offers.
- Online application process is clear and simple to follow.
Cons
- Doesn't lend in all states.
- Website doesn’t provide customized mortgage rates.
- Lender fees are on the high side, according to the latest federal data.
Read Full Review
LEARN MORE
on NerdWallet
Truist: NMLS#399803
4.5
Home loans overall
NerdWallet rating
Min. credit score
620
Min. down payment
3%
Why We Like ItGood for: first-time and low-income home buyers, early career doctors and other borrowers interested in low-down-payment mortgages, especially those in South Carolina, North Carolina, Texas and Virginia.
Pros
- Offers a wide variety of loan options, including construction loans, programs for early career doctors, a wide variety of jumbo loans and home equity lines of credit.
- Proprietary grant program can help borrowers afford down payment and closing costs.
- Mortgage rates are lower than industry average, according to the latest federal data.
Cons
- Customized rates aren't available online without contacting the lender.
- For borrowers who prefer to apply in person, branches are limited mostly to the South and East.
- Mortgages aren’t available in all 50 states.
Read Full Review
LEARN MORE
on NerdWallet
US Bank: NMLS#402761
4.5
FHA loans
NerdWallet rating
Min. credit score
N/A
Min. down payment
3.5%
Why We Like ItGood for: borrowers seeking a bank with lower-than-average lender fees for FHA loans.
Pros
- Lender fees for FHA loans are on the lower end, according to the latest federal data.
- Offers FHA streamline refinance mortgages.
- Lists sample mortgage rates and APRs for many of its products online, including a breakdown of estimated monthly payments.
Cons
- Sample mortgage rates online are not customizable by credit score.
Read Full Review
LEARN MORE
on NerdWallet
Wintrust Mortgage: NMLS#449042
4.5
VA loans
NerdWallet rating
Min. credit score
N/A
Min. down payment
0%
Why We Like ItWintrust Mortgage offers a variety of loan products, including home equity lines of credit and even home-improvement loans, and provides a number of online conveniences, such as loan process updates. But you won’t find rates posted online.
Pros
- Offers specialty loans, such as construction and renovation loans and loans for second homes and investment properties.
- Participates in first-time home buyer assistance programs in Illinois, Indiana and Wisconsin.
Cons
- Sample rates for some loan products are available only by contacting a loan officer.
- Physical locations aren't available in all states.
Read Full Review
Learn moreat New American Funding
at New American Funding
New American Funding: NMLS#6606
4.0
Home loans overall
NerdWallet rating
Min. credit score
580
Min. down payment
3%
Why We Like ItGood for: first-time home buyers, military members and self-employed or underrepresented borrowers.
Pros
- Offers a wide variety of purchase and refinance mortgages with an emphasis on helping underserved communities.
- Its home equity line of credit can be used for an owner-occupied or second home.
- Has a program to enable buyers to make cash offers.
- Receives high marks for customer satisfaction, according to J.D. Power and Zillow.
Cons
- Mortgage origination fees tend to be on the high end.
- Personalized mortgage rates are not available on the website without providing contact information.
Read Full Review
Learn moreat Rocket Mortgage, LLC
at Rocket Mortgage, LLC
Rocket Mortgage, LLC: NMLS#3030
4.0
Home loans overall
NerdWallet rating
Min. credit score
620
Min. down payment
1%
Why We Like ItGood for: FHA borrowers and others short on down payment cash, as well as home buyers who value convenience over low fees.
Pros
- Streamlined online process with document and asset retrieval capabilities, as well as the ability to edit your preapproval letter.
- Offers the option to work with loan officers by phone if desired.
- Largest FHA lender in the nation.
Cons
- Getting a customized interest rate requires a credit check, which can affect your credit score.
- Origination fees are on the high side compared with other lenders, according to the latest federal data.
- Doesn't offer home equity lines of credit.
Read Full Review
LEARN MORE
on NerdWallet
Wells Fargo: NMLS#399801
4.0
Home loans overall
NerdWallet rating
Min. credit score
620
Min. down payment
3%
Why We Like ItGood for: existing customers of the bank looking for a wide selection of mortgage products, as well as self-employed borrowers and home buyers without Social Security numbers.
Pros
- Sample rates clearly posted for various loan products.
- Offers a wide variety of loan types and products, including options for borrowers who work for themselves and those without Social Security numbers.
- Mortgage rates tend to be on the low side compared with other lenders, according to the latest federal data.
Cons
- Home loans business is broadly focused on bank customers.
- Doesn’t offer home improvement loans, or home equity loans or lines of credit.
- Scandals and government actions have damaged consumer trust in recent years.
Read Full Review
Pros and cons: Low- and no-down-payment home loans
The pros: You can reach your goal of homeownership more quickly.
If you’re struggling with how to save for a down payment, you don't have to wait months or years until you have a large amount of cash saved.
When you become a homeowner sooner, you can start building home equity.
The cons: Low- and no-down-payment mortgages include extra expenses, and you start with less equity.
Conventional loans with down payments of less than 20%, along with FHA and USDA loans, require buyers to pay for mortgage insurance, which protects the lender in case the borrower defaults. VA loans have a one-time VA funding fee.
Your interest rate and monthly mortgage payment could also be higher with a low-down-payment mortgage.
A low- or zero-down-payment mortgage means you will start your homeownership journey with little to no equity in the home. If your home declines in value, you can end up owing more than the property is worth.
» MORE: Check out first-time home buyer programs in your state
Credit score requirements for low- or no-down-payment mortgages
FHA loans: To qualify for a 3.5% payment on an FHA loan, you’ll need at least a 580 credit score. With a score between 500 and 579, you’ll need a 10% down payment. (See our list of best FHA loans for bad credit.)
Conventional loans: On low-down-payment conventional loans, a 620 score or better is generally required. Some conventional loans, such as HomeReady and Home Possible, are geared to low-income borrowers.
VA loans: VA loans cater to borrowers with military experience, or the eligible spouses of veterans or service members. The required credit score for VA loans varies by lender, but many ask borrowers to have at least a 620 or have other qualifications.
USDA loans: USDA loans are for buyers in rural and some suburban areas. Applicants with credit scores of 640 and higher can qualify for streamlined processing. Those with lower scores have to go through a more rigorous underwriting process. Applicants with no credit score or limited credit histories can qualify for USDA loans with nontraditional credit information, such as rental and utility payments.
» MORE: How your credit score affects your mortgage rate
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Last updated on March 4, 2024
Methodology
The star ratings on this page reflect each lender's overall star ratings. Read more about how we determine those ratings.
The lenders on this page are chosen using this methodology:
NerdWallet reviewed more than 50 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (measured among lenders with at least a 1% market share), lenders with significant online search volume and those that specialize in serving various audiences across the country.
For inclusion in this roundup, lenders must have an overall score of 4 or higher. FHA, USDA and VA loans must each make up at least 1% of the lender's home purchase loan volume, according to the latest HMDA data or FHA and VA loans must each make up at least 1% of the lender's home purchase loan volume and the lender must offer a mortgage program with a minimum down payment of 3% or less or for borrowers with a credit score as low as 620.
NerdWallet solicits information from reviewed lenders on a recurring basis throughout the year. All lender-provided information is verified through lender websites and interviews. We also utilized the latest HMDA data for origination volume, origination fee, average interest rate and share-of-product data.
NerdWallet's Best Lenders for Low- and No-Down-Payment Mortgages of 2024
- NBKC: Best for FHA loans
- Guaranteed Rate: Best for USDA loans
- Flagstar: Best for overall mortgage experience
- Pennymac: Best for FHA loans
- PNC: Best for first-time home buyers
- Veterans United: Best for VA loans
- Network Capital: Best for borrowers with weaker credit
- Truist: Best for variety of loan types
- US Bank: Best for variety of loan types
- Wintrust Mortgage: Best for government-backed loans overall
- New American Funding: Best for customer satisfaction
- Rocket Mortgage, LLC: Best for conventional loans
- Wells Fargo: Best for home buyer assistance
Frequently asked questions
What is the lowest down payment for a mortgage?
You may be able to get a conventional loan with a down payment as low as 3%. An FHA loan, which is insured by the Federal Housing Administration, requires a minimum down payment of 3.5%. Some loans — such as VA and USDA loans — can be secured with no money down.
Are there income limits on no-down-payment mortgages?
Sometimes, but not always. Some mortgages have income limitations depending on where the property is located, like USDA loans, which are guaranteed by the United States Department of Agriculture. VA loans, backed by the Department of Veterans Affairs, have no income restrictions.
Which loan programs do not require a down payment or private mortgage insurance?
VA and USDA loans may allow you to purchase a home with no down payment or mortgage insurance. Both of these loans have fees that cover the cost of foreclosure in the event you default on the mortgage loan, however.
Do I have to be a first-time home buyer for a low- or no-down-payment mortgage?
No, low-down-payment mortgages aren't limited to first-time home buyers. FHA loans are popular with first-time home buyers because of the minimum 3.5% down payment requirement and relaxed credit score requirements. With some 3% down conventional loans, such as HomeReady and Home Possible, a homeowner education course is required if all borrowers are first-time home buyers.
