Top Mortgage Lenders For Low and No Down Payment Loans
Following is a list of the best mortgage lenders. We based this list on the varied loan options offered to customers, the convenience of their application processes, and their flexibility in evaluating applicants’ credit scores.
1. Wesley Mortgage
Wesley Mortgage, the official mortgage provider of the Tennessee Titans, is an excellent choice for homebuyers seeking a low or no-down payment loan. This local lender transforms home ownership dreams into reality for countless applicants. Their exemplary customer service, fast closing times, and commitment to reinvesting in their community ensure a hassle-free home-buying journey.
2. Rocket Mortgage
Min Credit Score: 620
Min Down Payment: 3% (for conventional mortgages)
With Rocket Mortgage, an online lender, getting a low down payment mortgage is pretty straightforward. Aside from conventional loans, you also have various options to take out government-insured loans. These can be used to buy a home or refinance your existing one. Remember that Rocket Mortgage follows the same loan interest rates as Quicken Loans, while both companies are subsidiaries of the parent company, Rock Holdings.
Being an online lender, the entire application process is conducted on their efficient website platform. The site can pull your credit data, feature a wide array of loan choices for applicants, and provide the option to lock in your mortgage rates post-approval.
3. New American Funding
Min Credit Score: 620
Min Down Payment: 3%
New American Funding offers its customers various mortgage options for purchase, refinancing, and more. The company is aware of the diverse needs and capabilities of its applicants, and thus, aside from conventional mortgages, it also provides a broad range of government-backed (FHA, VA) loans. The company further serves first-time buyers by offering several tailored programs. It collaborates with down payment assistance programs in 14 states, including California, Texas, Florida, and Illinois.
New American Funding also employs manual underwriting. That enables the lender to personally assess each borrower’s financial history instead of relying purely on automation. If you prefer to work with a loan officer during your application process, contact your local branch to begin the journey.
4. Quicken Loans
Min Credit Score: 620
Min Down Payment: 3% (for conventional loans)
Quicken Loans is another high-volume lender offering various options to its customers looking for either fixed-rate or adjustable-rate home loans for purchase and refinancing. You can also turn to Quicken Loans for jumbo loans.
Like its affiliate, Rocket Mortgage, Quicken Loans offers conventional loans requiring a minimum down payment of just 3%. You can also explore their VA and FHA loan options. However, it’s important to note that, similar to Rocket Mortgage, applying for a low down payment mortgage will necessitate a substantial credit review. Compared to other lenders, their mortgage rates and lender fees are also on the higher side.
5. Flagstar Bank
Min Credit Score: 620
Min Down Payment: 3% (for conventional loans for first-time homebuyers)
Flagstar Bank is a Michigan-based savings bank that offers home loans in all 50 states, catering to an expansive roster of customers and their varied needs. The lender has retail locations in approximately half the states, offering convenient access for applicants. If you’re not in those locales, you can begin your application by visiting the company’s website. A loan advisor with a range of experience providing details of various loan products will contact you if you wish to proceed. They act as partners to guide you and help alleviate the debt that can accompany purchasing a home or property.
Aside from low-down-payment conventional loans, you can turn to Flagstar Bank for an FHA loan or a VA loan, in addition to a variety of other loan products that cater to a wide array of customers. FHA loans require a down payment of 3.5%, while the VA loan experiences a significant advantage as it allows zero down payment.
6. PNC Bank
Min Credit Score: 620
Min Down Payment: 3% (with flexible down payment options highlighted in further details)
PNC Bank is a retail and commercial bank that offers a range of low-down payments throughout the United States. As a partner in your journey, choose from a selection of conventional and government-backed loans to buy a house, build home equity, or refinance an existing property. The bank specializes in helping borrowers with low-to-moderate income.
Note that PNC Bank does not offer renovation mortgages, and in-person service may not be available in your state.
7. Navy Federal Credit Union
Min Credit Score: N/A
Min Down Payment: 0% (especially for military families)
The credit union membership has a range of optional partners, including veterans, current members of the military, some federal employees, retirees, and contractors. Union members can choose from numerous low- and zero-down mortgage loans. They also have the option to choose from 15- to 30-year fixed-rate contracts, VA loans, adjustable-rate mortgages, and jumbo loans.
Their digital platform allows borrowers to start their applications online. With unique experience, loan officers can examine alternative credit data, such as rent payments and bills, instead of relying solely on a potential borrower’s credit score.
8. Bank of America
Min Credit Score: 580-640
Min. Down Payment: 0% – 3.5%
Bank of America offers multiple options. For instance, a VA loan requires no down payment. Or consider the Affordable Loan Solution program, which requires only a 3% down payment on loans up to some $500k. Both options could be valuable loan products, helping reduce potential debt.
One advantage of borrowing from the Bank of America is its online application process. The lender also considers alternative credit data, such as rent, utility, and cellphone payments. Moreover, the bank has an A+ rating from the Better Business Bureau, lending more credibility to your lending experience.
