Breaking Down the Barriers to Homeownership: Top Lenders for Low- and No-Down-Payment Mortgages
Are you tired of feeling like a down payment is standing in the way of achieving your dream of homeownership? You’re not alone. Many aspiring homeowners struggle to come up with the necessary funds, but there are lenders out there who can help. We’ve done the research to bring you the top lenders specializing in low- and no-down-payment mortgages.
Truist: A Leader in Low-Down-Payment Options
Truist offers a range of low- and no-down-payment programs, including conventional and government-backed options. Their Doctor Loan program provides 100% financing for medical and dental professionals, with no mortgage insurance required. Plus, they work with state housing finance agencies to find down payment assistance programs for borrowers.
Navy Federal Credit Union: A VA Loan Powerhouse
Navy Federal Credit Union is a top choice for VA loans, offering no down payments to borrowers with a military connection. Their Military Choice program extends VA loan benefits to borrowers with no remaining entitlements. With a reputation for excellent customer satisfaction and competitive loan costs, Navy Federal is a great option for those who have served.
Chase: Conventional Loans with a Twist
Chase offers conventional loans with low down payments, including their DreaMaker loan, which allows for a down payment as low as 3%. They also offer grants of up to $7,500 to help with down payments or closing costs. With a guarantee of closing within three weeks, Chase is a great choice for borrowers who want to move quickly.
Pennymac: FHA Loans with Flexibility
Pennymac is a leading FHA lender, offering down payments as low as 3.5%. They also offer a promotional buydown, which can reduce your mortgage rate by 1% for a year. With a range of fixed- and adjustable-rate options, Pennymac is a great choice for borrowers who want flexibility.
U.S. Bank: USDA Loans for Rural and Suburban Areas
U.S. Bank is a top choice for USDA loans, offering no-down-payment options for borrowers in rural and suburban areas. They also offer a rent vs. buy calculator to help you decide whether buying a home is right for you. With a commitment to lending to underserved households, U.S. Bank is a great option for those who may not have considered homeownership possible.
Rocket Mortgage: Innovative 1%-Down Conventional Loans
Rocket Mortgage pioneered online mortgage lending and offers an innovative 1%-down conventional mortgage. They’ll cover up to 2% of the down payment, allowing qualified buyers to put just 1% down. With grants of up to $7,500 and a buydown of your mortgage rate, Rocket Mortgage is a great choice for borrowers who want to minimize their upfront costs.
What to Know About Down Payments
A down payment is the amount you pay upfront to reduce the principal of your mortgage. While a 20% down payment is traditional, many loan programs allow for much lower down payments. In fact, some government-backed loans offer no down payment at all. However, the more you put down, the lower your mortgage interest rate and monthly payment will likely be.
The Benefits of Low-Down-Payment Mortgages
Low-down-payment mortgages can be a game-changer for aspiring homeowners. They can help you get into a home sooner, rather than later, and can be especially beneficial for first-time buyers or those with limited savings. However, it’s essential to weigh the pros and cons and consider the total cost of ownership before making a decision.
Methodology
We reviewed and scored mortgage lenders based on five primary categories: interest rates, affordability, loan costs, rate transparency, and online features. We also analyzed regulatory actions and consumer complaints to ensure that our top picks are reputable and trustworthy.
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