Traditionally, home buyers were expected to put 20% down to purchase a home, and while there were several low to no down payment programs out there after the housing crisis many of them disappeared. Today, however, they’re making a comeback. So, whether you’re seeking a low down payment option as an investment strategy or simply because you don’t have that traditional 20% in savings just yet, we have several options for you to consider.

One thing to keep in mind before you look at low to no down payment options, many of these loan programs may require you carry mortgage insurance because you will putting less than 20% down. Mortgage insurance is a policy that covers the lender in the event of a default on the loan. Premiums are either paid up-front as a lump sum or built in as a monthly fee added onto your monthly payment.

As Little As 5% Down

We have loan programs that will accept as little as 5% down, which can now be fully gifted to you. And while, you’ll need to purchase mortgage insurance, you’ll be able to get into a home and start building equity rather than paying rent while you save up that traditional 20%. Other low down payment options include, Lender Paid Mortgage Insurance (LPMI) programs, which let you put less than 20% down without having to pay the mortgage insurance premiums, and Fannie Mae HomePath which offers the opportunity to purchase a Fannie Mae owned property for as little as 5% down with no mortgage insurance.

10% Down Jumbo

If you’re looking for a low down payment option on a luxury home, our 10% down jumbo program may be right for you. Not only does it eliminate the traditional 20% down payment requirement that other jumbo programs have, this particular program also does not require mortgage insurance – which may save you a bundle on premiums. We also offer several 10% down jumbo programs that do require mortgage insurance, which will often offer better interest rates. Your loan officer can certainly advise you on which option is the best for your situation. All of these programs can have a loan amount up to $750,000.

No Down Payment Options

No down payment options are harder to come by these days, but they do still exist. Programs that offer $0 down include VA loans and USDA loans. VA loans offer military veterans low cost loans that often do not require a down payment, and USDA loans are for those looking to purchase a home in rural areas.

Down Payment Assistance Programs

Many local or federal government agencies offer assistance programs to help people, especially first time home buyers, with the purchase of a home. In Illinois, for example, the Illinois Housing Development Authority (IHDA) offers several programs including Welcome Home, which offers $7,500 cash assistance to cover the down payment. IHDA also offers a program offering $10,000 in down payment assistance if you purchase a home in an eligible community through their Building Blocks program.

Contact your loan officer to learn more about low to no down payment mortgages options and see which loan program works best for you.