An Introduction to Low Down Payment Programs

With flexible qualifying, help from friends or family and down payments typically between as 0% and 5%, Summit Mortgage offers a variety of programs to choose from! Have questions? Want help getting started? Complete our Quick Start Form and we’ll connect you with a loan officer that matches your specific needs. They’ll provide a free consultation and guide you through every step of the loan application process.

Low Down Payment Options

Minimum down payments

Down payments can be as low as: 0% USDA and VA | 3% Conventional | 3.5% FHA

Seller’s Contributions

These programs allow for you to negotiate for the seller’s to put money toward your closing costs in your purchase agreement. The allowable amounts, depending on the program, range between 3% and 6% that can be put toward your closing costs or prepaid taxes and insurance lowering the amount of cash you have to come to closing with.

Options. Options. Options.

These low down payment home loans have many options for borrowers to consider including fixed or adjustable rates and a variety of loan terms for both home purchases and refinances. Summit is here to help you understand all your options and make the best decision for your specific situation.

Flexible Qualifying Guidelines

Borrowers with less than perfect credit can still qualify for financing. These programs can allow family members (and in some cases close friends) to help you qualify by providing gift funds for the down payment or even co-signing as a non-occupying co-borrower.

Low Down Payment Programs

FHA Home Loan Details

• 3.5% minimum down payment
• Entire down payment may come from gift funds (talk to me about this early in the process!)
• Minimum credit score as low as 580
• Primary residence purchases only
• 1-4 unit homes, manufactured, approved condos and planned unit developments (PUDS) allowed
• Up to 6% seller contribution allowed
• Non-occupying borrowers are allowed to help the occupying borrowers qualify for the loan. A great option for parents looking to help their children buy their first home!
• Non-traditional credit history acceptable
• Variety of loan terms available for both purchase and refinance as well as renovation
• FHA loans have both upfront mortgage insurance premium charged at closing as well as monthly mortgage insurance for a minimum or 11 years but in most cases it is for the life of the loan.

Conventional Home Loan Details

• Between 3% and 5% down payment
• Minimum credit score as low as 620
• Low down payment options are available only on primary residence, higher down payment options open up ability to purchase second or investment property
• Down payment may come from gift funds (talk to me about this early in the process!)
• Seller paid closing costs or concessions between 3-6% of sales price depending on the amount you put down at closing
• Non-occupying borrowers are allowed to help the occupying borrowers qualify for the loan. A great option for parents looking to help their children buy their first home!
• Variety of loan terms available for both purchase and refinance as well as renovation
• Conventional loans with less than 20% down have mortgage insurance requirements, but also have the ability to cancel mortgage insurance once you have enough equity in the home.
• Mortgage insurance options include borrower paid monthly or upfront as well as lender paid. Speak with your favorite lender to decide what option is best for you.

VA Home Loan Details

• Down Payment as low as 0%
• Seller paid closing costs or concessions capped at 4%
• Minimum credit score as low as 580
• Restricted to 1-2 unit primary residence
• No mortgage insurance required
• Funding Fee may be required but can be rolled into the loan amount
• Variety of loan terms available for both purchase and refinance as well as renovation

USDA Home Loan Details

• Down Payment as low as 0%
• Seller paid closing costs or concessions capped at 6%
• Minimum credit score as low as 580
• Location and income restrictions apply
• Restricted to 1 unit, condo or manufactured home primary residence
• No mortgage insurance required but does have a guarantee fee which is similar to mortgage insurance
• 30 year fixed rates terms only
• Available for both purchase and refinance as well as renovation