Struggling to save for a down payment on your dream home? You’re not alone. According to the 2025 Home Affordability Report from Bankrate, more than half of potential homebuyers cite down payments and closing costs as significant obstacles to homeownership.
Fortunately, mortgage lenders have stepped up to offer solutions tailored to buyers with limited savings. Whether you’re looking for no down payment or minimal upfront costs, there are plenty of options available.
We’ve researched and compiled the best mortgage lenders for low and no down payments in 2025, offering insights into their features, benefits, and who they’re best suited for.
By the end of this guide, you’ll have a clearer understanding of your options, empowering you to take the next step toward homeownership.
Why Low and No Down Payment Options Are Game-Changers
Traditional home loans often require a down payment of 10-20%. For many, this is a daunting sum to save while juggling rent, bills, and other living expenses.
Low and no down payment mortgages reduce this upfront burden, making homeownership more accessible. Here’s why these options are significant:
- Affordability: Reduced initial costs mean you can enter the housing market sooner without years of saving.
- Flexibility: These loans cater to various income levels, credit scores, and geographical locations. Whether you’re a first-time buyer or a veteran, there’s likely a loan designed for you.
- Accessibility: Government-backed mortgages like USDA, VA, or FHA loans provide additional pathways for low-to-moderate income buyers.
Now, let’s explore the best mortgage lenders offering low and no down payment options in 2025.
The Top Mortgage Lenders for Low and No Down Payments
1. Best Online Lender: Rocket Mortgage
Why Choose Rocket Mortgage?
Rocket Mortgage stands out for its seamless online application process and an extensive array of loan options.
Borrowers can apply from the comfort of their homes and receive verified approval in as little as two hours. Key features include:
- Low Down Payment Options: Offers loans with as little as 1% down through the Rocket ONE+ program, which has no private mortgage insurance (PMI) requirements.
- Loan Types: Conventional, FHA, VA, jumbo, and HomeReady loans.
- Minimum Credit Score: 620 for conventional loans, 500 for FHA loans.
- Other Benefits: Outstanding customer service with high satisfaction scores from J.D. Power.
Rocket Mortgage is ideal for tech-savvy borrowers who value convenience and speed.
2. Best for No Down Payment: Guild Mortgage
Why Choose Guild Mortgage?
Guild Mortgage offers a Zero Down program that combines a 3.5% FHA loan with a forgivable second mortgage, effectively eliminating the need for a down payment. Notable highlights include:
- Loan Types: Conventional, FHA, VA, USDA, and special “Zero Down” and “Arrive Home” loans.
- Minimum Credit Score: 600 for Zero Down loans, 540 for FHA loans.
- Special Perks: Borrowers earning up to 160% of the area median income can qualify for additional no-down-payment loans.
This makes Guild Mortgage an excellent choice for buyers who want diverse options with minimal upfront costs.
3. Best for Affordability: New American Funding
Why Choose New American Funding?
New American Funding is known for its competitive rates and straightforward application process.
It caters to first-time buyers and those with limited credit histories. Key details include:
- Down Payment Requirements: 0% for USDA and VA loans; 3% for conventional loans.
- Loan Types: Conventional, FHA, VA, USDA, jumbo, and adjustable-rate mortgages.
- Closing Time: Offers a guaranteed 14-business-day closing period, faster than most.
This lender is perfect for buyers looking for affordable rates and quick turnaround times.
4. Best for Low-Income Borrowers: Chase Bank
Why Choose Chase Bank?
Chase’s DreaMaker loan requires just 3% down for borrowers earning up to 80% of the area median income. Additional benefits include:
- Loan Types: Conventional, FHA, VA, jumbo, and proprietary low-down-payment loans like DreaMaker.
- Special Perks: Eligible buyers can receive up to $7,500 in grants for closing costs or rate reductions.
- Minimum Credit Score: 500 for FHA loans; 620 for conventional loans.
Chase is ideal for low-income buyers who could benefit from grants and rate discounts.
5. Best for Down Payment Assistance: Flagstar Bank
Why Choose Flagstar Bank?
Flagstar Bank combines traditional loan products with unique down payment assistance programs. Highlights include:
- Loan Types: Conventional, FHA, VA, USDA, and proprietary loans like Destination Home Mortgage (0% down).
- Down Payment Assistance: Up to $15,000 in grants for first-time buyers in eligible areas.
- Minimum Credit Score: 600 for Destination Home Mortgage.
Flagstar is the right fit for first-time buyers who need a financial boost to cover upfront costs.
6. Best for Veterans: Navy Federal Credit Union
Why Choose Navy Federal?
Navy Federal Credit Union specializes in serving military families with zero-down payment options for VA, Military Choice, and Homebuyers Choice loans. Key benefits include:
- Loan Types: VA, conventional, and jumbo loans.
- Special Perks: Offers cash-back incentives of up to $9,000 for homebuyers using its RealtyPlus program.
- Membership Requirement: Limited to active and retired military personnel, Department of Defense employees, and their families.
This lender is ideal for military families seeking flexible, no-down-payment solutions.
7. Best for USDA Loans: PNC Bank
Why Choose PNC Bank?
PNC offers USDA loans with zero down payment, catering to rural and suburban homebuyers. Standout features include:
- Loan Types: USDA, conventional, FHA, VA, and jumbo loans.
- Down Payment Assistance: Grants of up to $7,500 for eligible buyers.
- Minimum Credit Score: 640 for USDA loans.
PNC is a great choice for buyers in rural areas or those seeking government-backed loans with added financial support.
Tips for Choosing the Right Lender
When evaluating lenders, keep the following in mind:
- Check Eligibility Requirements: Ensure you meet the credit score and income criteria before applying.
- Understand Costs: Compare interest rates, fees, and mortgage points to gauge affordability.
- Consider Your Needs: Some lenders specialize in first-time homebuyer programs, while others cater to veteran or low-income borrowers. Identify what aligns best with your situation.
The Future of Homeownership is Within Reach
Low and no down payment loans make homeownership more achievable than ever. By understanding your options and partnering with the right lender, you can take the stress out of buying your dream home.
Take the first step today! Explore your opportunities with one of the recommended lenders above and start your exciting homeownership journey.