Buying a home with a low down payment is a viable path to homeownership that moves many buyers away from the traditional 20% requirement. In 2025, the median down payment for first-time buyers was approximately , with many options available as low as 0% to 3.5% . Popular Low and No Down Payment Loan Options
: Many private lenders, such as Bank of America , Chase, and PNC, offer specialized low-down-payment loans or grants, sometimes requiring as little as 1% to 3% down . The Hidden Costs: Mortgage Insurance buying a house with low down payment
: Private Mortgage Insurance (PMI) is usually required for conventional loans. It can often be removed once you reach 20% equity in the home. Buying a home with a low down payment
: Backed by the U.S. Department of Agriculture , these offer 0% down for low-to-moderate-income buyers in designated rural and suburban areas. The Hidden Costs: Mortgage Insurance : Private Mortgage
Multiple government-backed and conventional programs cater to buyers with limited upfront cash:
: Backed by Fannie Mae and Freddie Mac , these programs allow for just 3% down for qualified first-time buyers.
: FHA loans require both an upfront and an annual Mortgage Insurance Premium (MIP). Unlike conventional PMI, the annual MIP often lasts for the entire life of the loan unless you put down 10% or more. Pros and Cons of a Lower Down Payment Pros and Cons of a Low Down Payment