Top 6 Best Low-Down-Payment Mortgages of May 2024

The best low-down-payment mortgages of May 2024 require a minimum upfront payment of 0% or 3% of the home’s purchase price, depending on the mortgage loan programs.

For many first-time homebuyers and those short on their savings, making a 20% down payment or higher seems unattainable. Still, their homeownership dream can become realistic thanks to the availability of different low- or no-down-payment mortgage options and down-payment assistance programs. The following is a list of the 06 best low-down-payment mortgages of May 2024.

6 Best No- or Low-Down-Payment Mortgages of May 2024

  • Bank Of America: Best for Down Payment Assistance
  • Guaranteed Rate: Best for Digital Closing
  • New American Funding: Best for a Variety of Loan Types
  • Veterans United Home Loans: Best for Veterans
  • Ally Bank: Best for No Lender Fees
  • Chase Bank: Best for Multiple Assistance Programs

Bank Of America: Best for Down Payment Assistance

Bank of America is the nation's second-largest bank, serving customers in all states in the U.S. The bank stands out for its in-person and online presence in over 4,000 financial centers, making it a great lender for those wanting to meet with a loan officer. It offers multiple mortgage options, including FHA and VA loans, as well as an Affordable Loan Solution mortgage with a minimum down payment requirement of as low as 0%–3%.
Another reason Bank of America is a good choice for a mortgage is its robust grant programs for closing costs and down payments. For low-income buyers who need help with upfront mortgage costs, America’s Home Grant program and the Down Payment Grant program are well worth considering. Borrowers could get as much as $7,500 in closing cost assistance (America’s Home Grant program) and up to $10,000 (3% of the purchase price) in down payment assistance (the Down Payment Grant program).



  • Physical branches in most states;
  • Closing cost and down payment assistance programs for low-income borrowers in selected areas;
  • Highly-rated customer satisfaction;
  • Offer multiple loan options.
  • Doesn’t disclose pre-approval or closing times.
  • Doesn’t have USDA loans.

New American Funding: Best for a Variety of Loan Types

New American Funding offers a wide range of loan types, from conventional loans to FHA, VA, USDA, jumbo loans, non-qualified loans, short-term loans, and more, focusing on helping underserved communities. The required down payment for mortgage loans provided by this California-based lender is as low as 0% and 3%, depending on the loan options.

In terms of minimum credit score requirements, prospective homebuyers need to have at least 580 for some mortgage types (and as low as 620 for others). Additionally, New American Funding often has lower published rates compared to the national average, making homeownership more attainable for a broader range of homebuyers.



  • Multiple loan options, including no- and low-down-payment mortgage loans;
  • Below-average interest rates;
  • Specializing in loans to minority borrowers;
  • 14-day closing guarantee on various loan options.
  • Unavailable in every state;
  • Fees aren't disclosed to borrowers unless they are applying for a mortgage;
  • The application process cannot be completed online entirely.

Guaranteed Rate: Best for Digital Closing

Guaranteed Rate stands out for its streamlined digital process, that makes the borrowing process as convenient and easy as possible. Borrowers can choose to go through the process entirely online or visit one of Guaranteed Rate’s many physical branches. Estimatedly, there are more than 500 in-person branches across the U.S.

This non-banking lender also boasts a generous selection of mortgage options (including FHA, VA, Conventional, Jumbo, HELOC, and other loan types) for customers in Washington, D.C., and all 50 states. While government-backed loans like VA and FHA loans require at least 0% and 3.5% down payments, respectively, some conventional loans have down payment requirements as low as 3%.

The minimum credit score that Guaranteed Rate requires for FHA and VA loans is 600, while it’s 620 for conventional loans. Importantly, this lender also has interest rates below the industry average.



  • Operates in every state, with physical branches in most states;
  • Lower-than-average mortgage rates;
  • Offers various types of mortgages;
  • Streamlined digital mortgage process;
  • Displays current rates online.
  • Doesn’t have USDA loans;
  • Doesn’t offer traditional home equity loans;
  • Application fee required.

Veterans United Home Loans: Best for Multiple Assistance Programs

Offering mortgages in Washington, D.C., and all 50 states, Veterans United is one of the best VA lenders in the country. Though this lender has different types of mortgage loans, it’s best known for VA loans.

So, if you're a military service member, veteran or surviving spouse, or eligible reservist looking for a VA loan, then look no further than this lender—Veterans United Home Loans. Since 2016, it has consistently generated the highest number of VA purchase loans annually in the U.S.

Veterans United also ranks so high in customer satisfaction. The lender provides 24/7 customer support over the phone, which enables it to serve customers stationed abroad. Moreover, it offers free credit counseling to assist borrowers in preparing to meet loan qualification requirements.



  • Nationwide availability;
  • Minimum down payment of as low as 0% for VA loans;
  • 24/7 customer support;
  • Free credit counseling;
  • Specialization in VA loans while also offering non-VA options.
  • Doesn’t have physical branches in all states;
  • Lender fees apply;
  • Doesn’t provide second mortgage options, such as HELOCs or home equity loans.

Ally Bank: Best for No Lender Fees

Unlike many other mortgage lenders, Ally Bank doesn’t charge lender fees. That means you won’t need to pay origination, application, underwriting or processing fees, which may help save thousands of dollars in loan closing costs.

Eligible borrowers can access Ally's wide range of home loan options, with some only requiring a minimum down payment of 3%. This lender also offers a streamlined digital mortgage process, allowing borrowers to complete the application 100% online within a few minutes.

In addition, eligible borrowers buying houses in selected areas, including Detroit; Charlotte, North Carolina; or Philadelphia metro areas, can benefit from the Ally Home Grant, which provides $5,000 to help with their down payment and/or closing costs.



  • Smooth online application process;
  • No lender fees;
  • Availability of closing costs and down payment grants for eligible homebuyers in certain areas;
  • Promise a fast closing.
  • No zero percent down payment loan options (FHA, USDA, or VA loans);
  • Doesn’t have physical branches.

Chase Bank: Best for Closing On Time

Last but not least, Chase Bank is still one of the best low-down-payment mortgages of May 2024. Operating in Washington, D.C., and 48 states across the U.S., Chase Bank provides its customers with multiple mortgage loan products for different types of borrowers, such as FHA, VA, conforming, and jumbo loans. In addition, this lender also offers its exclusive Chase DreaMaker mortgage—an affordable option for prospective homebuyers with modest incomes. This program only requires a minimum down payment of 3%.

Homebuyers can also benefit from the Chase Homebuyer Grant, which gives eligible borrowers a credit of up to $5,000 on certain loan programs to help cut their closing costs, lower the loan interest rate, or fund a portion of the down payment. Notably, this lender, through its Chase Closing Guarantee, promises on-time closing and will pay $5,000 if the mortgage cannot be closed within three weeks.



  • Several loan assistance programs;
  • On-time closing guarantee;
  • Multiple loan options, including jumbos and ARMs;
  • Online support is available;
  • High custom satisfaction.
  • Doesn’t have USDA loans or home equity loans;
  • High credit score requirements;
  • Higher-than-average interest rates;
  • The Chase Homebuyer Grant is only available at selected locations.

Top 6 Best Low-Down-Payment Mortgages of May 2024

What Are the Current Mortgage Rates (May 2024)?

Here are the latest updates for the current mortgages this May, as of the second week of the month, according to U.S. News:

  • 30-year fixed: 7.18% with 0.65 points
  • 5/1 ARM: 6.6% with 0.65 points
  • 15-year fixed: 6.6% with 0.59 points
  • 30-year FHA loans: 6.92% with 0.91 points
  • 30-year jumbo loans: 7.31% with 0.46 points

Also, as per U.S. News, mortgage interest rates are forecasted to decrease somewhat throughout this year.

FAQs about Low-down-payment Mortgage

What is a No- or Low-Down-Payment Mortgage?

Low-down-payment mortgages are home loans that require borrowers to pay the upfront of less than 20% of the house’s purchase price. No-down-payment mortgages are loans that don’t require homebuyers to pay upfront. For homebuyers with limited resources, these mortgages are attractive, allowing faster homeownership and helping them to preserve a part of their remaining savings for emergencies and unexpected expenses.

What is the Minimum Down Payment Requirement For a Mortgage?

The minimum requirements for mortgage down payment vary by different mortgage programs. For VA and USDA loans, no down payment is needed. On the other hand, conventional loans can start with just a 3% down payment, whereas FHA loans require at least a 3.5% down. Of course, homebuyers are free to pay more upfront than the required minimum amount if they want.

Should I Get a Low-Down-Payment Mortgage?

Choosing a large or small mortgage down payment largely depends on your financial circumstances and future goals. As with large down payments, no- or low-down payments have unique benefits and downsides. Low down payments mean lesser upfront costs; they allow faster homeownership and help preserve your savings for emergencies or investments. Still, no or low down payments can lead to PMI costs, a higher monthly mortgage payment, and a less favorable interest rate.
So, if you do not have lots of cash but want to own your home, if you can comfortably afford to pay higher total monthly payments, or if you have a long-term plan to stay in the home, consider opting for a low- or no-down-payment mortgage.

What Are The Most Common Types of Mortgages With No or Low Down Payments?

VA and USDA loans offer zero down payments, whereas FHA loans, HomeReady by Fannie Mae, conventional loans, and Freddie Mac Home Possible Mortgage require little initial payment, ranging from 3% to 3.5%, depending on the mortgage programs. Of course, to be qualified for these programs, borrowers have to meet specific requirements regarding credit score, income, and more.

Can I Get A Low Down Payment Mortgage With Bad Credit?

Yes. Currently, there are some mortgage options for borrowers with poor credit.
For instance, FHA loans require a minimum of 3.5% down with a credit score of at least 580 or 10% with a credit score from 500 to 579.


Bank of America, Guaranteed Rate, Ally Bank, and more are among the best low-down-payment mortgages of May 2024. Without a doubt, no- and low-down-payment mortgages and assistance programs open doors to homeownership, especially for first-time buyers and those with limited resources. However, it’s worth noting that private mortgage insurance (PMI) on low-down payment loans, higher monthly payments, and other potential additional expenses can result in extra costs. Consider government-backed FHA, USDA, or VA loans (if eligible) for potentially lower rates and down payments. Remember, the best down payment mortgage is the one that well fits your financial situation and short- and long-term goals. So, shop around, compare rates, and secure the best fit for your path to homeownership.

Red more: Top 5 Best Low-Down-Payment Mortgages of April 2024