Low-down-payment mortgages (3-10% down) are the path most buyers actually use — median first-time buyer down payment is 8% per NAR data. The right lender has programs for 3% down AND access to down-payment assistance grants. Here are 4 lenders worth shopping for low-down-payment financing.
Down Payment Grant up to $10,000 in eligible markets + America's Home Grant up to $7,500 in closing costs. Combined with HomeReady 3% down, stacks the deepest grants available from a bank lender.
DreaMaker loan: 3% down with $5,500 in closing-cost grants in income-limit areas. Existing Chase relationship strengthens approval. Branch network for borrowers who prefer in-person support.
Full HomeReady + Home Possible 3% down coverage. Broad approval rates for low-down-payment buyers. ONE+ program offers 1% down in some markets (Rocket contributes additional 2% to reach conventional requirements).
$0 origination fee reduces closing-cost burden — critical for buyers who are cash-tight on down payment. Fast digital closing (21-35 days). 3% down conventional supported.
On conventional loans: yes, until LTV reaches 80%. PMI on conventional loans cancels automatically at 78% LTV and can be requested at 80%. On FHA loans: MIP runs for the life of the loan (if down payment was under 10%). On VA/USDA loans: no PMI even at 0% down. PMI cost varies by lender, credit score, and down payment — typically 0.2-2% of loan balance per year.
Yes — gift funds from family members are permitted on most loan types with a gift letter documenting the funds are a gift, not a loan. FHA, Fannie Mae HomeReady, and Freddie Mac Home Possible all allow 100% of the down payment to come from gift funds in some cases. Conventional loans require the borrower to contribute some amount at higher LTVs.
Most states operate Housing Finance Agencies (HFAs) that offer below-market-rate first mortgages + down-payment assistance grants or second-lien loans. These programs have income limits and usually require HFA-approved lenders. Not all lenders on this list participate in all state HFA programs — check your state HFA's website directly. HUD lists state HFAs at hud.gov. The CFPB has first-time homebuyer resources at consumerfinance.gov. See our full guide (/blog/best-mortgage-lenders-2026) and (/blog/best-personal-loans-2026). Reviewed by Brian's ClearValue Lending Team. Updated May 2026.