For years, homebuyers have been told that a 20% down payment is a necessity for purchasing a home. However, data shows this is not the case.
What Are the Real Down Payment Conditions
In 2024, the median down payment for first-time homebuyers was just 9%. This indicates that the 20% down payment is more of a myth than a requirement.
Top 5 Low and No Down Payment Programs and Lenders
Key types of low or no down payment loans include:
* VA Loans (0% down) * USDA Loans (0% down) * FHA Loans (3.5% down) * Conventional Loans (as low as 3% down) * Dream. Plan. Home.® mortgage (Wells Fargo).
Recommended lenders include:
1. Veterans United Home Loans 2. U.S. Bank 3. Wells Fargo 4. New American Funding 5. Chase.
Factors to Consider When Choosing a Mortgage
Choosing a lender can sometimes be as important as the loan program itself. Lenders may have their own requirements for credit scores and debt-to-income ratios. It's essential to compare lenders to find the best fit for your financial profile.
There are many low down payment programs available today, making it easier for prospective homeowners to obtain housing. The pre-qualification process with a lender can help select the best mortgage product.
