Best low- and no-down-payment mortgage lenders of January 2025

If the down payment is your biggest blocker to buying a house, we’ve got good news. Yahoo Finance has hand-picked the best home loan lenders specializing in low- and no-down-payment mortgages.

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As you’ll see, you have some excellent choices. Each lender has a specialty, and one of them (or more) may be a perfect fit for your home-buying needs. We use government data and exhaustive research to rate each lender to some of the highest standards in the personal finance reporting industry. We don’t give out five stars like candy. In fact, no lender we’ve reviewed to date has met that standard yet.

But these come close.

The Yahoo View: Truist offers low- and no-down payment mortgages, generous assistance programs, and 100% financing for medical and dental professionals.

Stars: 4.0

Read our full Truist mortgage review

Key benefits

• Low- or no-down-payment programs include conventional and government options.

• With the Truist Doctor Loan, medical and dental professionals can get 100% financing on loans up to $1 million without paying for mortgage insurance, and Truist may not factor student loans into the debt-to-income ratio (DTI) requirements.

• Truist works with state housing finance agencies to find down payment assistance programs available where you live.

Need to know

The Yahoo view: Our highest-ranking lender is a VA loan leader — the most valuable no-down-payment mortgage on the market.

Stars: 4.20

Read our full Navy Federal Credit Union mortgage review

Key benefits

• Navy Federal specializes in loans backed by the Department of Veterans Affairs, offering no down payments to borrowers with a military link.

• A Navy Federal program, Military Choice, offers VA loan benefits to borrowers with no remaining entitlements.

• With a stellar reputation for customer satisfaction, NFCU is near the top of J.D. Power’s rankings.

• According to Yahoo Finance’s analysis of HMDA data, Navy Federal offered well-below-median loan costs and interest rates in 2023. That’s a rare and valuable combination.

Need to know

Read more: The best VA loan lenders right now

The Yahoo view: Conventional loans can have low down payments too. Chase is a top-five lender in conventional loan volume and offers grants that can be applied to borrowers’ down payments or closing costs.

Stars: 4.00

Read our full Chase mortgage review

Key benefits

• Eligible borrowers can receive up to $7,500 in grants, which they can use toward a down payment or to reduce closing costs.

• Chase guarantees a closing within three weeks, or qualified borrowers receive $5,000.

• The Chase DreaMaker loan allows a down payment as low as 3% with relaxed credit qualifications.

Need to know

The Yahoo view: Pennymac is one of the leading FHA lenders in the nation, offering down payments as low as 3.5%.

Stars: 3.80

Xem thêm : Low mortgage rates lock in homeowners as buyers keep on looking

Read our full Pennymac mortgage review

Key benefits

• Pennymac offers FHA loans with fixed- or adjustable-rate options.

• Features a 1% discount off your mortgage rate for one year as a promotional buydown.

• Receive a $1,000 credit at closing if you apply for free preapproval before getting a mortgage (this does not apply to jumbo loans or refinances).

Need to know

• According to Yahoo Finance’s analysis of HMDA data, Pennymac offered lower mortgage rates but higher loan costs than the industry average in 2023.

• FHA loans are well suited for borrowers with a few glitches on their credit reports.

Learn more: The best FHA loan lenders

The Yahoo view: U.S. Bank is a full-service bank that makes USDA loans accessible to borrowers nationwide and prioritizes lending to underserved households.

Stars: 3.80

Read our full U.S. Bank mortgage review

Key benefits

• Honored as Yahoo Finance’s Best USDA lender overall.

• You do not have to be a first-time homebuyer to qualify for a no-down-payment USDA loan.

• U.S. Bank has a rent vs. buy calculator that can help you decide whether buying a home right now is a good idea.

• Has committed $100 million over five years to provide up to $12,500 in down payment assistance and up to an additional $5,000 as a lender fee credit to help underserved families become homeowners.

Need to know

• USDA loans are made in eligible rural and suburban areas with populations generally under 35,000.

• USDA loans do not usually require a down payment; however, $1,000 is due at closing.

• Has a below-average score in the J.D. Power customer satisfaction study.

Rocket Mortgage

The Yahoo view: Rocket Mortgage not only pioneered online mortgage lending — it also created an innovative 1%-down conventional mortgage.

Stars: 3.06

Read our full Rocket Mortgage review

Key benefits

• Rocket will cover up to 2% of the conventional 3% down mortgage, allowing qualified buyers to put just 1% down.

• It offers a buydown of your mortgage rate: a 2% reduction the first year and a 1% discount the second.

• Has grants up to $7,500 to apply to borrowers’ down payment or closing costs. Available to eligible borrowers in 21 cities.

Need to know

• After years of dominating the J.D. Power customer satisfaction survey, Rocket’s ranking fell in the 2024 report — but is still above average.

• A Yahoo Finance analysis of HMDA data revealed that Rocket Mortgage, on average, had lower interest rates but higher loan costs in 2023.

We carefully considered the following mortgage lenders for our best-of list, but they weren’t quite as strong as our top picks:

A down payment is the money you pay at loan closing to reduce the principal of your mortgage. Some loans call for a certain amount of cash upfront; others have no down payment requirement. However, the more money you put down, the lower your mortgage interest rate and monthly mortgage payment will likely be.

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Dig deeper: What is a down payment, and how does it work?

A 20% down payment has been the traditional standard, and it’s the minimum required to avoid paying private mortgage insurance (PMI) — an up-front and ongoing fee on conventional loans that protects the lender. However, loan programs have been launched in recent years that allow much lower down payments, from 0% to around 3%.

Read more: How much down payment do you need for a house?

In 2024, the average down payment was 18.6%. However, that includes repeat buyers rolling over home equity to a new loan — and home prices have risen. For additional clarity, the typical down payment for first-time home buyers was 8%; for repeat buyers, it was 19%.

More details: The average down payment on a house

The holy grail of home loans: no down payment. Yes, they do exist, and as you might imagine, they’re quite popular. Two government loans are the primary 100% financing options: VA loans and USDA-backed mortgages.

Need to know: Zero-down mortgage — How to buy a house with no down payment

It’s the military benefit that has allowed generations of service members to buy a home. Backed by the Department of Veterans Affairs, VA loans usually require no down payment and put a cap on closing costs. There is a funding fee but no upfront or ongoing mortgage insurance. And while the VA has no minimum credit score, lenders do — and it varies from lender to lender.

Dig deeper: What is a VA loan, and what are the requirements to qualify?

Loans backed or issued by the U.S. Department of Agriculture are another 100% financing option. You don’t have to be in a farming or ranching business, but the property has to be located in a rural or suburban area approved by the USDA. The loans are specifically designed to meet the housing needs of low- and moderate-income households.

Learn more: USDA loans — How to qualify in 2025

Coming up with 20% down is a financial leap many first-time buyers just can’t make. But something around 3% — now that’s a hurdle worth taking a run at. Three low-down-payment programs are worth considering.

The venerable FHA loan has been around for nearly a century. An initiative of the U.S. Department of Housing and Urban Development, the FHA mortgage offers a down payment option as low as 3.5%. Your credit score can be as low as 580, though some lenders will set a higher limit.

Read more: FHA loans — 2025 requirements, limits, and loan types

A relative newcomer in the low down payment arena, the conventional loan requiring only 3% down is offered by two government-sponsored companies that provide financial backing to lenders. Known as Fannie Mae HomeReady and Freddie Mac Home Possible loans, the programs open the door for more mortgage makers to offer a low-down-payment option.

Need to know: How to get a 3% down mortgage in 2025

A creative solution offered by just a few lenders, this loan wraps a 2% lender grant into a 3% down mortgage. The result: You pay 1% down. There may be loan limits or household income caps for these mortgages, but each lender offering such a loan will have its own eligibility requirements.

Dig deeper: Believe it or not, you can get a mortgage with 1% down

No matter how much down payment you plan to make on buying a house, it will likely require putting aside some money. Besides the cash down, there are closing costs, perhaps an earnest money deposit — and even things as mundane as moving expenses. First, set a goal for how much you want to save, then automate money transfers to get it done.

Read more: How to save for a house in 7 easy steps

You may have heard of down payment assistance and wondered: Who is it for, and how does it work? The programs usually offer grants or forgivable loans and can be sponsored by local and state agencies. Eligibility may be determined by where you live, your income, and whether you are a first-time home buyer.

Learn more: Down payment assistance — How it works and how to qualify

In 2023, more than one-third of borrowers used gifts to help come up with the down payment. How does that work? Well, first, you have to hunt down a benevolent relative, friend, or charity. Different types of loans — such as conventional, FHA, and VA loans — have separate restrictions on who can donate the money to you and how it can be used.

Read more: What to know about using gift money for a down payment

The minimum credit score required to qualify for low- or no-money-down financing will depend on the type of loan you are getting and the lender. Generally, an FHA loan will require a 580 credit score for 3.5% down. USDA loans with 100% financing also may look for a 580 score or higher. VA loans have no minimum credit score requirements, but lenders often call for a 620 FICO or better. And 3% down conventional loans will likely require a 620 score or better.

If you want 100% financing, a VA loan is often the best option for qualified buyers. However, you’ll need to be an active-duty servicemember or a veteran. You could also consider a USDA loan, which usually has no down payment requirement. To qualify, you must meet income restrictions and buy a house in a USDA-approved rural area.

The lowest down payment on a mortgage is 0%. For that, you must be eligible for a VA or USDA loan, which requires having a military affiliation — or a modest income and a property to buy in a rural and USDA-approved area.

Methodology:

Yahoo Finance reviews and scores mortgage lenders with quintile scoring in five primary categories: 1) Interest rates. Using 2023 Home Mortgage Disclosure Act data comprised of 10 million home loan applications, we score mortgage lenders on issued mortgage rates below or above the annual median of reporting lenders. 2) Affordability. A measure of loan product availability and the willingness of a lender to offer government-backed loans, low down payments, down payment assistance, and consideration of nontraditional credit. 3) Loan costs. HMDA data is again analyzed, and lenders are rated based on total loan costs compared to the annual median. 4) Rate transparency. The ability of a website user to obtain a mortgage interest rate estimate. We score lenders based on whether rates are enhanced with discount points or high credit score requirements, disclaimers revealing rate assumptions, sample advertised rates, and whether adjustable or no discount point rate estimates are available. 5) Online features. An analysis of the educational material, calculators, and additional resources available to users.

Review of Nationwide Multistate Licensing System (NMLS) data on regulatory actions can trigger a penalty to the score of any lender with a consumer mortgage-related administrative or enforcement action within the past five years.

Advertisers or sponsorships do not influence ratings.

Editorial disclosure for mortgages:

The information in this article has not been reviewed or approved by any advertiser. The details on financial products, including interest rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the lender’s website for the most current information. This site doesn’t include all currently available offers.

This article was edited by Laura Grace Tarpley.