Best low and no down payment mortgage lenders in 2022

If you meet the eligibility criteria, it is possible to obtain a mortgage with a low or no down payment, which can make your journey towards home ownership easier. Bankrate reviewed several mortgage lenders to discover the best for these types of loans, based on measures such as low payment plans, lower fees and other savings opportunities. Here’s our guide to the best low and no down payment mortgage lenders in 2022.


Methodology

To determine the best low and no down payment mortgage lenders, Bankrate evaluated lenders based on several criteria, including pricing, affordability, availability of low down payment loan programs, and lender experience. ‘borrower.


Best low and no down payment mortgage lenders

Bank of America

Bank of America Mortgage Review

Loan products Purchase and refinancing; conventional, jumbo, FHA, VA, home equity line of credit (HELOC)
Credit requirements 620 for conventional loans; 680 for jumbo loans
Advantages
  • Available in all 50 states
  • Quick online prequalification
  • Credit from the lender of $7,500 to help cover closing costs
  • Down payment grant program of up to 3% of purchase price (capped at $10,000) for borrowers in select markets
The inconvenients
  • Fee schedules are not disclosed in advance online
Highlight The bank’s affordable loan solution and Freddie Mac Home Possible mortgage products only require a 3% down payment.

Flagstar Bank

Flagstar Bank Mortgage Review

Loan products Purchase and refinancing; conventional, jumbo, FHA, VA, USDA, home equity loans, construction and renovation loans
Credit requirements 620 for conventional loans; 700 for jumbo loans; 580 for FHA loans
Advantages
  • Available in all 50 states
  • Flexible down payment and closing cost assistance programs, including the Flagstar Gift Program (offers up to $5,000 to first-time home buyers) and the Home Buyers’ Opportunity Program property (offer up to $8,000 to low-income first-time home buyers)
The inconvenients
  • Lender fees are not disclosed upfront online
  • Home equity loans are only available in certain states
Highlight Flagstar Bank offers several programs to help homeowners with down payment and closing costs.

NCP Bank

PNC Bank Mortgage Review

Loan products Purchase and refinancing; conventional, jumbo, FHA, VA, USDA, HELOC, home equity loan, investment property, interest only
Credit requirements 620 for conventional loans, jumbo loans and FHA loans; 640 for USDA loans
Advantages
  • Multiple branches (not available in all states, however)
  • Low payouts and government-supported programs with less stringent qualification criteria
  • User-friendly dashboard to monitor loan status
The inconvenients
  • Online prequalification not available
Highlight PNC Bank is offering a closing cost assistance grant of up to $5,000.

New US funding

Review of US New Financing Mortgages

Loan products Purchase and refinancing; conventional, jumbo, FHA, VA, USDA, HELOC, investment property, flex-term, non-QM, reverse mortgages
Credit requirements 620 for conventional loans
Advantages
  • Get pre-qualified in just three minutes
  • Accredited by the Better Business Bureau (BBB) ​​with an A+ rating
  • Mortgage rates posted online and updated daily
The inconvenients
  • Lender fees are not disclosed online
Highlight New American Funding offers several low and no down payment loan options.

Federal Naval Credit Union

Navy Federal Credit Union Mortgage Review

Loan products Purchase and refinancing; conventional, jumbo, VA
Credit requirements 620 for conventional loans and VA loans
Advantages
  • Available to members in all 50 states
  • Relatively low rates
  • Loan programs without PMI
  • $1,000 Rate Match Guarantee
  • “Freedom Lock” allows borrowers to lower their rates twice
  • Phone and chat support available 24/7
The inconvenients
  • FHA and home equity loans not available
  • Loans not available to non-members
Highlight Navy Federal Credit Union is offering an incentive of up to $9,000 if you use a realtor from the Navy Federal RealtyPlus network.

Low down payment mortgages

Conventional loans 97 HomeReady/Home Loans possible FHA Loans
3% decrease 3% decrease 3.5% decrease
620 credit score Flexible subscription 580 credit points (500-579 points with 10% deposit)
Income limits Income limits No income limit
First time home buyers Home buyers and repeat buyers Home buyers and repeat buyers

Mortgages with no down payment

AV loans USDA Loans
No money down No money down
Flexible subscription Flexible subscription
No income limit Income limits
Eligible military, veterans and spouses Borrowers in eligible locations

Low and No Down Payment Mortgages: Pros and Cons

Advantages

  • Allows you to leave the rental and enter a house sooner
  • Allows you to buy a home now rather than in the future when it might cost more
  • Allows you to reserve your savings (if any) for emergencies or other purposes

The inconvenients

  • Less money down means you borrow more, which translates to higher monthly mortgage payments
  • Limited initial capital, so you can’t use it in an emergency, and if the market turns, you might owe more than the value of the house
  • Low payment loans require mortgage insurance
  • Low installment loans could come with higher interest rates
  • Loans without down payment come with additional fees
  • Some sellers see less money as a negative, which can be a downside in a hot market

Summary: The Best Low and No Down Payment Mortgage Lenders

With additional reporting by Allison Martin

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About Matthew R. Dailey

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