Low Down Payment Loan Options

A Quick Guide for RiverWILD Home Buyer

Many buyers assume they need 20% down to buy a home, but that’s rarely the case. Several loan programs allow qualified buyers to purchase with much lower down payments.

Below are the most common options buyers may qualify for.

FHA Loans

Typical Down Payment: ~3.5%

Best For:

• First-time buyers
  
• Buyers with moderate credit
  
• Buyers with limited savings
  

Highlights

• Lower credit score requirements than conventional loans
  
• Down payment can often come from gift funds
  
• Popular option for buyers purchasing their first home

Conventional Loans (Low Down Payment Programs)

Typical Down Payment: 3%–5%

Best For:

• Buyers with stronger credit
  
• Buyers who want more flexibility than FHA loans
  

Highlights

• Some programs allow as little as 3% down
  
• Private mortgage insurance may drop off once equity reaches ~20%
  
• Often competitive interest rates

USDA Loans

Typical Down Payment: 0%

Best For:

• Buyers purchasing in eligible rural or suburban areas
  

Highlights

• No down payment required for qualified buyers
  
• Lower mortgage insurance costs than many loan types
  
• Income limits apply
  

Many areas around smaller towns and suburbs qualify—even when they don’t feel rural.

VA Loans

Typical Down Payment: 0%

Best For:

• Active military
  
• Veterans
  
• Some surviving spouses
  

Highlights

• No down payment required
  
• No monthly mortgage insurance
  
• Often competitive interest rates
  

Down Payment Assistance Programs

Many buyers can also qualify for local or state assistance programs that provide:

• Down payment grants
  
• Forgivable second loans
  
• Closing cost assistance
  

These programs can sometimes reduce the buyer’s cash required to only a few thousand dollars.

✅ Agent Bonus Tip:
We always encourage our buyers to speak with our local lender partners to determine which loan program fits their situation best.