Best mortgage lenders for low and no down payments in 2025

Saving up for a down payment is no easy feat: According to Bankrate's 2025 Home Affordability Report, more than half of hopeful homebuyers cite down payments and closing costs as a "very significant obstacle" to homeownership.

But there are options for borrowers with little (or even nothing) to put down, from community mortgages to government-backed options like USDA and VA loans.

CNBC Select has named the best lenders for mortgages with low down payments in a variety of categories. (See our methodology for more on how we made our selections)

Who's this for? Online lender Rocket Mortgage makes it easy to apply from the comfort of home, with an all-digital application process, web chat and screen-sharing features and outstanding customer satisfaction scores from J.D. Power.

Standout benefits: Borrowers who meet income requirements can put as little as 1% down on a Rocket ONE+ loan without paying private mortgage insurance. Rocket also offers government-backed HomeReady and Home Possible loans, which only require a 3% down payment.

Who's this for? Guild's Zero Down mortgage combines a 3.5% FHA loan with a forgivable second mortgage, bringing your down payment down to zero. Best of all, borrowers can be approved with credit scores as low as 600.

Standout benefits: Guild's Arrive Home loan is another zero-down mortgage for borrowers who earn up to 160% of the area median income.

Who's this for? New American Funding's rates are well below the industry average for both 15- and 30-year fixed-rate loans. And borrowers can be approved for a conventional mortgage with as little as 3% down and no mortgage insurance.

Standout benefits: NAF guarantees closing within 14 business days, shorter than any lender we've reviewed.

Who's this for?Chase Bank's DreaMaker mortgage lets borrowers who make up to 80% of the area median income get approved with as little as 3% down. And applicants in 15 metro areas can qualify for a $7,500 grant to put towards a down payment, rate buydown or closing costs.

Standout benefits: Chase also has the Standard Agency loan, a 3%-down mortgage for first-time homebuyers with a 680 credit score.

Who's this for? Flagstar Bank has an array of affordable mortgages and homebuyer assistance programs: The Destination Home Mortgage lets borrowers in eligible counties put zero down with no mortgage insurance and only a 600 FICO score, while the Flagstar Gift Program provides up to $10,000 toward a down payment.

Standout benefits: First-time buyers in designated census tracts can get up to $8,000 in grant and gift funds with the Power Up program.

Who's this for? Navy Federal has three no-down-payment options for military families: Traditional VA loans, plus Military Choice and Homebuyers Choice mortgages, which allow sellers to contribute up to 6% of their home's value towards closing costs.

Standout benefits: If you find a better rate with a competitor, Navy Federal will match it or give you $1,000 after you close. Homebuyers who buy a house through Navy Federal's RealtyPlus program can receive up to $9,000 in cash back.

Who's this for? PNC is one of the few big banks that offers USDA loans, which are zero-down mortgages for properties in select rural and suburban regions. Not only do you get a lower interest rate, but you can skip mortgage insurance and don't have to show substantial cash reserves.

Standout benefits: PNC's speedy preapproval process can get you an answer within 30 minutes. Borrowers in eligible locations may qualify for a grant of up to $7,500 toward closing costs, down payment or other fees.

If you are financing the purchase of your home with a loan, the down payment is the portion you pay up front. If you make a 20% down payment on a $500,000 house, for example, you'll need financing for the remaining 80%, or $400,000.

The down payment shows a lender that you are financially invested in the property and unlikely to default on mortgage payments.

Usually, it must be made with certified funds, like a certified check, cashier's check or wire transfer.

In 2024, down payments for first-timers averaged 9%, according to the National Association of Realtors, and that's the highest they've been since 1997. If you put less than 20% down, however, you'll probably need private mortgage insurance.

VA loans and USDA loans can be approved with nothing down but some loans have minimum down payment requirements:

• For conventional mortgages, lenders typically require at least 5% down.
• The minimum down payment for an FHA loan is 3.5% for borrowers with a credit score of at least 580. With a score between 500 and 579, you'll need to put 10% down.
• For jumbo loans, which exceed the FHFA's conforming loan limit, lenders may ask for anywhere from 10% to 30% down.

There are different strategies to saving up a down payment and most can be deployed in tandem.

1. Open a dedicated account

A high-yield savings account or money market account will grow your money faster and you can funnel a portion of your paycheck into it each month by setting up an automatic transfer. In addition, having it be a separate account will help you fight the urge to dip into your fund for other reasons.

2. Set a timeline

Consider how long you want to save for a home and devise a budget that lets you meet your goal in that timeframe. You may realize you need more time to pay down debts and improve your credit score to qualify for a better rate.

3. Cut expenses

Where can you trim expenses? It might mean eating out less, canceling streaming services or finding cheaper car insurance. If you rent, you may want to look for a cheaper place or even consider moving back home with your family.

4. Earmark tax refunds and bonuses

Another savings strategy is to commit to funneling any tax refunds, work bonuses, cash gifts or other extra money that comes your way into your down payment fund.

The average federal refund in 2024 was $3,138. That can give your nest egg a considerable boost.

There are several home loans guaranteed by the federal government.

Rocket Mortgage offers verified approval in as little as two hours, with an average closing time of just 22 days. Using the Rocket Visa Signature Card can earn you points toward mortgage payments or a down payment on a future Rocket Mortgage home loan.

Mortgage types: Conventional, FHA, VA, jumbo, HomeReady, Home Possible, Rocket ONE+

Minimum credit score: 620 for conventional loans, 500 for FHA loans

Minimum down payment: 1% for Rocket ONE+, 3% for HomeReady or Home Possible, 3.5% for FHA, 0% for VA

Guild Mortgage offers conventional and government-backed mortgages in all states except New York. The Homebuyer Express guarantee ensures closing in 17 days or borrowers receive $500 in closing costs (not available in Oregon). Guild received an A+ from the Better Business Bureau and scored highly on J.D. Powers' 2024 mortgage origination and servicing surveys.

Mortgage types: Conventional, FHA, VA, USDA, jumbo

Minimum credit score: 600 for Zero Down, 620 for Arrive Home, 500 for FHA loans

Minimum down payment: 0% for an Arrive Home or Zero Down, 0% for VA or USDA loan, 1% for conventional loans

New American Funding is licensed to lend everywhere except Hawaii and New York and, unlike many lenders, displays sample rates online. While it ranked below average in J.D. Power's mortgage origination survey, NAF lands near the top for mortgage servicers and received an A from the Better Business Bureau.

Mortgage types: Conventional, jumbo, FHA, VA, USDA

Minimum credit score: 620 for conventional loans

Minimum down payment: 3% for conventional, 3.5% for FHA loans, 0% for VA or USDA

Chase Bank has branches in 48 states and mortgage advisors in 38. It guarantees on-time closing in as little as 21 days or eligible homebuyers may get a $5,000 rebate.

Mortgage types: Conventional, FHA, VA, jumbo, DreaMaker, Standard Agency loans

Minimum credit score: 620 for conventional loans, 500 for FHA

Minimum down payment: 3% for DreaMaker or Standard Agency loan, 0% for VA

Founded as First Security Savings Bank in 1987,Flagstar was acquired by New York Community Bank in 2022. It earned an A- from the Better Business Bureau, but ranked below average on the J.D. Power 2024 U.S. Mortgage Servicer Satisfaction Study.

Types of mortgages
Conventional, FHA, VA, USDA, jumbo, construction, refinancing, home equity loan, HELOC

Minimum credit score
Not disclosed

Minimum down payment
3.5% for FHA, 0% for VA or USDA

Membership in Navy Federal is limited to active service members, veterans, Reservists, Defense Department staff and their families. The 1.00% origination fee can be waived if you opt for a 0.25% rate increase.

Mortgage types: Conventional, VA, jumbo, Military Choice, Homebuyers Choice

Minimum credit score: 500 for VA loans

Minimum down payment: 0% for VA, Military Choice or Homebuyers Choice loans; 3% for conventional loans

PNC Bank has over 2,300 retail locations in 28 states, although it services mortgages nationwide. It has an A+ rating from the Better Business Bureau and scored above average in J.D. Power's 2024 U.S. Mortgage Servicer Origination Survey.

Mortgage types: Conventional, FHA, VA, USDA, jumbo, PNC Community Loan

Minimum credit score: 620 for conventional, 500 for FHA

Minimum down payment: 0% for USDA or VA, 3.5% for FHA

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every mortgage review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of home loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

To determine which mortgage lenders are the best for low or no down payment, CNBC Select analyzed dozens of home loans offered by both online and brick-and-mortar banks.

We focused on the following features:

Minimum down payment: We favored lenders that offered specialty loans with lower down payment requirements or that offered government-backed FHA, VA and USDA loans. 

Credit score: Most lenders require a 620 FICO score to secure a conventional mortgage. We noted if a lender had options for borrowers with poor credit.

Closing times: We gave more weight to lenders with shorter-than-average closing times or that guaranteed an on-time closing.

Fees: The mortgage process includes origination, application and underwriting fees, as well as charges for appraisals, title insurance, attorneys and other closing costs. When possible, we noted if a lender had lower fees, discounts or waived certain fees.

Application process: We considered whether lenders offered an online preapproval and application process and if there were physical branches for an in-person experience. 

Customer service: We gave more weight to lenders that scored highly on J.D. Power's mortgage origination and servicing surveys. We also noted if they had robust customer service phone hours and a website with an online chat feature and educational resources.

We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.

Based on that criteria, our recommendations for the best mortgage lenders for a low down payment are:

• Best online lender: Rocket Mortgage
• Best for no down payment: Guild Mortgage
• Best for affordability: New American Funding
• Best for low-income borrowers: Chase Bank
• Best for down payment assistance: Flagstar Bank
• Best for VA loans: Navy Federal Credit Union
• Best for USDA loan: PNC Bank

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