Not sure how much you need to save for a down payment? At Simply Home Loans, we know that every buyer’s situation is unique. That’s why we offer several mortgage options designed to help you purchase a home with less money upfront.

Low Down Payment Loan Options

FHA Loans
With an FHA loan, you can buy a home with as little as 3.5% down (with a credit score of 580 or higher). FHA loans are a popular choice for first-time buyers or anyone who may not have perfect credit. Mortgage insurance is required on FHA loans, which helps protect lenders when you put less than 20% down. This added insurance increases your monthly payment but makes it easier to qualify.

USDA Loans
Buying in a rural or suburban area? USDA loans offer 100% financing with no down payment for eligible buyers. Income limits apply, but this is a great option if your dream home is outside city limits.

VA Loans
If you’re a qualified military service member, veteran, or eligible surviving spouse, VA loans allow you to buy a home with no down payment and no mortgage insurance. VA loans offer some of the most generous financing terms available.

Other Low Down Payment Options
Some conventional loan programs allow as little as 3% down for well-qualified buyers. There are also special loan structures, like 80/20 loans, where a second loan helps cover part of your down payment.

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How Much Should You Put Down?

There’s no one-size-fits-all answer. Some buyers prefer a smaller down payment to keep more cash on hand. Others may want to put more down to lower their monthly payments. Our loan specialists will help you weigh the pros and cons to find the best fit for your goals.

The Trade-Offs of Lower Down Payments

Keep in mind – Low or no down payment loans often come with:

• Higher monthly payments (due to mortgage insurance or slightly higher rates)
• Mortgage insurance premiums (which can often be removed once you build at least 20% equity through payments or appreciation)

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Benefits of a Lower Down Payment

• Less money needed upfront
• Start building equity sooner
• Keep more of your savings for other goals or investments
• Take advantage of today’s tax-deductible mortgage interest (consult your tax advisor)

What’s Right for You?

Just because you can qualify for a certain loan amount doesn’t mean you should borrow that much. We’ll work with you to create a mortgage plan that feels comfortable for your personal budget, not just on paper.