• About
  • $40K Challenge
  • Aunt Doris
  • Grandfather Says
  • Privacy
  • Archives
  • Disclaimer

Len Penzo dot Com

The offbeat personal finance blog for responsible people.

bullion star banner

What’s the Lowest Mortgage Down Payment I Can Get Away With?

By Len Penzo

lowest mortgage down paymentMany people mistakenly believe a 20% down payment is required for conventional home loans. However, the reality is that’s only true for homebuyers who want to avoid private mortgage insurance charges. Read on to learn how to find the lowest mortgage down payment possible.

Well … depending on the mortgage, lenders generally require homebuyers to contribute as little as 3% of the home’s purchase price. That being said, there are some mortgages that actually don’t require any down payment at all!

For example, here is a summary of the most common mortgage types and their minimum down payment requirements:

Summary of Lowest Mortgage Down Payments

Conventional loans

Typically, the lowest mortgage down payment for conventional loans from Freddy Mac and Fannie Mae is 5% — and 3% for qualifying first-time homebuyers.

FHA loans

The minimum down payment is 3.5%.

VA loans

These mortgages require no money down for qualifying military members and some surviving spouses.

Section 502 loans

These mortgages are also known as Rural Home Loans or USDA Loans and are offered by the US Department of Agriculture. Like VA loans, they require no down payment for eligible borrowers.

***

Readers: This is article 13 of 25 from my no-nonsense “Mortgage Basics” quick-reference series.

Photo Credit: GotCredit

October 31, 2024

Question of the Week

Do you plan on taking a summer vacation this year?
VoteResults

Copyright © 2025 Len Penzo dot Com · All Rights Reserved · Designed by Nuts and Bolts Media

© Len Penzo dot Com 2008–2025