Purchase
Less down. More options than you'd think.
You don't need 20% to buy. Many qualified buyers close with 3%, 3.5%, or even $0 down. We'll show you each path side-by-side and pick the one that's actually cheapest for your situation.
The trade-off most buyers miss
Lower down payment usually means mortgage insurance — which costs you every month. That doesn't make it a bad choice, but you should see the math, not just the headline. We'll model each path so the trade-off is obvious.
Highlights
What you should know
Conventional 3% down
For qualifying first-time and repeat buyers — often a smart alternative to FHA.
FHA 3.5% down
Flexible credit, low down payment, government-backed.
VA & USDA $0 down
For eligible borrowers and properties — true 100% financing.
FAQ
Frequently asked questions
Can I really buy a house with no money down?
Yes — eligible VA borrowers (active duty, veterans, qualifying spouses) and eligible USDA borrowers (qualifying property location plus household income within program caps) can finance 100% of the purchase price. Most other buyers will need at least 3% down.
What is the minimum down payment to buy a home?
The lowest down payments are: $0 for VA and USDA (when eligible), 3% for conventional first-time-buyer programs, and 3.5% for FHA. Each path has different qualification rules, mortgage insurance costs, and rate trade-offs.
Is FHA always cheaper than conventional 3% down?
Not necessarily. FHA has both upfront and monthly mortgage insurance, while conventional 3% down has only monthly PMI that drops off when you reach 20% equity. For higher credit scores, conventional 3% down is often cheaper over time. We'll model both side-by-side for your scenario.
Do I have to pay PMI with a low down payment?
On most low-down-payment loans, yes — except VA loans, which never require PMI. Conventional loans require PMI until you reach 20% equity. FHA mortgage insurance lasts the life of the loan in most cases. The cost varies based on credit score, down payment size, and loan type.
Can my down payment come from a gift?
Yes, in most cases. FHA, VA, USDA, and most conventional programs allow gift funds from a qualifying donor (typically a family member or close relationship). The gift must be properly documented with a gift letter and paper trail.
Are there closing-cost assistance programs?
Yes. Some lenders offer credits in exchange for a slightly higher rate, sellers can contribute toward your closing costs (with limits that vary by loan type), and state programs like NC Housing Finance Agency offer down-payment and closing-cost assistance for eligible buyers.
Talk it through with our team.
Five minutes on the phone, or a few questions online. No pressure, no credit pull required.