How to Buy a House with No Down Payment in 2019
In This Article You Will Learn:
- Types of No or Low Down Payment Loans
- If this loan is right for you
- Down Payment Assistance
- Eligibility
First Time Buyers AND Repeat Buyers
The down payment is usually the biggest barrier to homeownership today. It’s not easy to come up with $10,000 or even more for a down payment these days, but it doesn’t have to be as difficult as you might think. In fact, buying a home with low or no money down is more achievable than you might imagine.
Most people think you need at least 10% down to buy a house, but that’s not necessarily true. The average down payment for first-time homebuyers today is just 6% and several programs offer no money down payments at all.
If you are in a position where you simply cannot come up with the 5% or more needed to buy a home, then this article is for you.
What is a down payment?
A down payment is the portion of the purchase price of a home that a buyer will pay to secure the loan with a lender and start off homeownership with a little bit of equity. Many conventional loans require a 20% down payment so for instance, if you were to buy a $200,000 house, you would need $40,000 down payment and apply for a loan for $160,000. That’s a good chunk of change and most first-time buyers just can’t come up with it.
FHA Loan
VA Loan
USDA & Down Payment Plans
Other Loan Options
- Conventional 97 – 3% down payment option by Fannie Mae
- HomeReady™ Mortgage – a 3% from Fannie Mae that offers a little more flexibility than Conventional 97
- Piggyback Loans – which the first and second mortgage or open simultaneously to cover a larger part of the home’s purchase. This requires a 5 to 10% down payment depending on the primary and secondary mortgage amounts.
- Home Possible Advantage® – a 3% down payment with no first-time homebuyer requirement for a single owned property homeowner. Ideal for those with fair to excellent credit scores.
- HomePath Ready Buyer – the closing cost assistance program where you can receive up to 3% of your loan amount toward the closing costs. Eligibility requires a HomePath property and a 3% minimum down payment
- Gift Funds – cash gifts can be used for a down payment or an approved nonprofit assistance programs as long as it does not have to be paid back.
Is a Low or No Money Down Purchase Right For You?
It’s important to compare loan types and mortgage lenders. For many people struggling to save a large down payment, many of these options are ideal but it’s also important to have a mortgage expert that understands each of these programs and can help you compare options.
Downpayments can be funded a variety of different ways and once I understand your current situation, I can offer flexible options to get you where you need to go.

Does the Length of My Credit History Matter?
Does the Length of My Credit History Matter? - Your credit score is one of the most important metrics underwriters look at to determine your eligibility for a mortgage. This 3-digit number says a lot about how you manage debt and whether you are able to take on more...

3 Common Challenges for Self-Employed Mortgage Borrowers
Common Challenges for Self-Employed Mortgage Borrowers - Qualifying for a mortgage as a self-employed borrower is entirely possible, especially with knowledgeable professionals on your side. It helps to understand the common challenges self-employed borrowers face, so...

What is PMI and How Do I Know If I’ll Have to Pay It?
What is PMI and How Do I Know If I'll Have to Pay It? The more you research buying a home, the more acronyms you will come across. If you're feeling lost among all the new terms, we can help break it down so that you feel confident and well-informed to make a decision...