Best Mortgage Lenders for Low and No Down Payments in 2025

Down payments have remained fairly high since the pandemic. Since 2021, first-time and repeat homebuyers have been putting down a median of about 15%.

Before Covid, down payments were closer to 10%. 

But there are options for borrowers with little (or even nothing) to put down, from down payment assistance programs to government-backed options like FHA and VA loans.

CNBC Select has named the best lenders for mortgages with low down payments in a variety of categories. (See our methodology for more on how we made our selections)

Who’s this for? Online lender Rocket Mortgage makes it easy to apply from the comfort of home, with a digital application process, web chat and screen-sharing features, plus outstanding customer satisfaction scores from J.D. Power.

Standout benefits: Eligible borrowers can put as little as 1% down with a ONE+ loan from Rocket and the lender will add another 2% in a non-repayed grant. Rocket also offers government-backed HomeReady and Home Possible loans, which only require a 3% down payment.

Who’s this for? Guild’s Zero Down mortgage combines a 3.5% FHA loan with a forgivable second mortgage, bringing your down payment down to nothing.Even better, borrowers can be approved with credit scores as low as 600.

Standout benefits: Guild has several low-down-payment options, including the zero-down Arrive Home loan for borrowers who earn up to 160% of the area median income. If borrowers come with 1% down, the Guild 1% Down mortgage will kick in 2% of the home price.

Who’s this for? FHA loans only require 3.5% down for creditworthy buyers, and Pennymac‘s rates for these government-backed mortgages are well below the industry average. That’s probably why it closed more FHA loans than any other lender in 2024.

Standout benefits: With Pennymac’s BuyerReady Certification preapproval process, borrowers can get $1,000 towards closing costs. Using a real estate agent in Pennymac’s Home Connect network can get you up to $9,500 back after closing.

Who’s this for? Flagstar Bank has an array of homebuyer assistance programs, including the Destination Home Mortgage, which lets borrowers in eligible counties put zero down with no mortgage insurance and only a 600 FICO score. The Flagstar Gift Program, meanwhile, provides up to $10,000 toward a down payment.

Standout benefits: First-time buyers in designated census tracts can get up to $8,000 in grant and gift funds with the Power Up program.

Who’s this for? Navy Federal has three no-down-payment options for military families: Traditional VA loans, Military Choice and Homebuyers Choice mortgages, which allow sellers to contribute up to 6% of their home’s value towards closing costs.

Standout benefits: If you find a better rate with a competitor, Navy Federal will match it or give you $1,000 after you close. Homebuyers who buy a house through Navy Federal’s RealtyPlus program can receive up to $9,000 in cash back.

Who’s this for? PNC is one of the few big banks that offers USDA loans, zero-down mortgages for properties in select rural and suburban regions. Not only do you get a lower interest rate, but you can skip mortgage insurance and don’t have to show substantial cash reserves.

Standout benefits: PNC’s speedy preapproval process can get you an answer within 30 minutes. Borrowers in eligible locations may qualify for a grant of up to $7,500 toward closing costs, down payment or other fees.

If you are financing the purchase of your home with a loan, the down payment is the portion you pay up front. If you make a 20% down payment on a $500,000 house, for example, you’ll need financing for the remaining 80%, or $400,000.

The down payment shows a lender that you are financially invested in the property and unlikely to default on mortgage payments.

Usually, it must be made with certified funds, like a certified check, cashier’s check or wire transfer.

In 2024, down payments for first-timers averaged 9%, according to the National Association of Realtors, the highest they’ve been since 1997.

If you put less than 20% down, however, you’ll probably need private mortgage insurance.

VA loans and USDA loans can be approved with nothing down but some loans have minimum down payment requirements:

• For conventional mortgages, lenders typically require at least 5% down.
• The minimum down payment for an FHA loan is 3.5% for borrowers with a credit score of at least 580. With a score between 500 and 579, you’ll need to put 10% down.
• For jumbo loans, which exceed the FHFA’s conforming loan limit, lenders may ask for anywhere from 10% to 30% down.

A high-yield savings account or money market account will grow your money faster and you can funnel a portion of your paycheck into it each month by setting up an automatic transfer. In addition, having it be a separate account will help you fight the urge to dip into your fund for other reasons.

2. Set a timeline

Consider how long you want to save for a home and devise a budget that lets you meet your goal in that timeframe. You may realize you need more time to pay down debts and improve your credit score to qualify for a better rate.

3. Cut expenses

Where can you trim expenses? It might mean eating out less, canceling streaming services or finding cheaper car insurance. If you rent, you may want to look for a cheaper place or even consider moving back home with your family.

4. Earmark tax refunds and bonuses

Another savings strategy is to commit to funneling any tax refunds, work bonuses, cash gifts or other extra money that comes your way into your down payment fund.

The average federal refund in 2024 was $3,138. That can give your nest egg a considerable boost.

Rocket Mortgage offers verified approval in as little as two hours, with an average closing time of just 22 days. Using the Rocket Visa Signature Card can earn you points toward mortgage payments or a down payment on a future Rocket Mortgage home loan.

Mortgage types: Conventional, FHA, VA, jumbo, HomeReady, Home Possible, Rocket ONE+

Minimum credit score: 620 for conventional loans, 500 for FHA loans

Minimum down payment: 1% for Rocket ONE+, 3% for HomeReady or Home Possible, 3.5% for FHA, 0% for VA

Guild Mortgage offers conventional and government-backed mortgages in all states except New York. The Homebuyer Express guarantee ensures closing in 17 days or borrowers receive $500 in closing costs (not available in Oregon). Guild received an A+ from the Better Business Bureau and scored highly on J.D. Powers’ 2024 mortgage origination and servicing surveys.

Mortgage types: Conventional, FHA, VA, USDA, jumbo

Minimum credit score: 600 for Zero Down, 620 for Arrive Home, 500 for FHA loans

Minimum down payment: 0% for an Arrive Home or Zero Down, 0% for VA or USDA loan, 1% for conventional loans

Homebuyers who finance with Pennymac are eligible for a temporary buydown of 1% off their interest rate for the first year. The California-based online lender earned an A+ from the Better Business Bureau but ranked at the bottom of J.D. Power’s 2024 survey on mortgage originators.

Mortgage types: Conventional, FHA, USDA, VA, HomeReady, Home Possible, HomeOne, jumbo, refinancing, home equity loan

Minimum credit score: 620 for conventional, 500 for FHA loans, 620 for VA loans

Minimum down payment: 3% for conventional, 3.5% for FHA loans, 0% for USDA loans, 0% for VA loans

Founded as First Security Savings Bank in 1987, Flagstar was acquired by New York Community Bank in 2022. It earned an A- from the Better Business Bureau, but ranked below average on the J.D. Power 2024 U.S. Mortgage Servicer Satisfaction Study.

Types of mortgages
Conventional, FHA, VA, USDA, jumbo, construction, refinancing, home equity loan, HELOC

Minimum credit score
Not disclosed

Minimum down payment
3.5% for FHA, 0% for VA or USDA

Membership in Navy Federal is limited to active service members, veterans, Reservists, Defense Department staff and their families. The 1.00% origination fee can be waived if you opt for a 0.25% rate increase.

Mortgage types: Conventional, VA, jumbo, Military Choice, Homebuyers Choice

Minimum credit score: 500 for VA loans

Minimum down payment: 0% for VA, Military Choice or Homebuyers Choice loans; 3% for conventional loans

PNC Bank has over 2,300 retail locations in 28 states, although it services mortgages nationwide. It has an A+ rating from the Better Business Bureau and scored above average in J.D. Power’s 2024 U.S. Mortgage Servicer Origination Survey.

Mortgage types: Conventional, FHA, VA, USDA, jumbo, PNC Community Loan

Minimum credit score: 620 for conventional, 500 for FHA

Minimum down payment: 0% for USDA or VA, 3.5% for FHA

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every mortgage review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of home loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

To determine which mortgage lenders are the best for low or no down payment, CNBC Select analyzed dozens of home loans offered by both online and brick-and-mortar banks.

We focused on the following features:

Minimum down payment: We favored lenders that offered specialty loans with lower down payment requirements or that offered government-backed FHA, VA and USDA loans. 

Credit score: Most lenders require a 620 FICO score to secure a conventional mortgage. We noted if a lender had options for borrowers with poor credit.

Closing times: We gave more weight to lenders with shorter-than-average closing times or that guaranteed an on-time closing.

Fees: The mortgage process includes origination, application and underwriting fees, as well as charges for appraisals, title insurance, attorneys and other closing costs. When possible, we noted if a lender had lower fees, discounts or waived certain fees.

Application process: We considered whether lenders offered an online preapproval and application process and if there were physical branches for an in-person experience. 

Customer service: We gave more weight to lenders that scored highly on J.D. Power’s mortgage origination and servicing surveys. We also noted if they had robust customer service phone hours and a website with an online chat feature and educational resources.

We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.

Based on that criteria, our recommendations for the best mortgage lenders for a low down payment are:

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