A starter guide to low down payment mortgage loans

by Daniel Martin 02/04/2024

A starter guide to low down payment mortgage loans featured image

Perhaps one of the most challenging things about buying a home is saving for the down payment. Many buyers think they need more than they actually do to buy a home; however, the down payment doesn’t have to be a barrier on the road to homeownership.  

Low down payment mortgages

Fortunately, there’s many low down payment mortgage options available for homebuyers. Reasons for needing to pay a lower down payment may include having a small amount of savings, or wanting to invest the savings you have into home repairs or other projects. 

Mortgage options offering lower down payment options may come with higher interest rates and mortgage insurance, which adds up over the lifespan of the loan. However, the convenience of a lower mortgage may be what’s needed to start the journey to homeownership. 

FHA Loans

FHA loans are among the most popular types of home loans, as they offer flexibility to homebuyers of diverse financial backgrounds - with a down payment of about 3.5 percent. The requirements are simple, and you don’t have to be a first-time homebuyer to qualify. 

A major positive aspect of this loan type is your credit score doesn’t have to be stellar for you to qualify. Some lenders approve FHA loans with credit scores as low as 580.  

One drawback to an FHA loan is that you cannot cancel the monthly mortgage insurance that comes along with it unless the home is refinanced. Traditional mortgage insurance is canceled when you have built up 20% equity in the property, but this isn’t the case with FHA loans. 

VA Home Loans

Buyers who have current or former military service status can qualify for this zero down mortgage. While no downpayment is required, buyers may put down any amount they wish, coinciding with their homebuying goals. 

If you need assistance with finding the right loan type fitting your needs, consider working with a mortgage loan officer to explore your options.

About the Author

Daniel Martin


National Association of REALTORS (NAR)

Connecticut Association of REALTORS (CAR)

Bridgeport Board of Realtors

Valley Board of Realtors

Greater Fairfield County CMLS

Connecticut CTMLS


Principals and Procedures of Real Estate

Naugatuck Valley Community College

Connecticut School of Electronics

Housatonic Community College


Connecticut Magazine 5 Star Realtor 2014-2023

Top Producer

Top Listing Agent

Top Selling Agent

Professional Specialty:

My experience and expertise in the home selling and buying process gives my clients an advantage in any real estate market.

*First Time Home Buyers

*Single Family Homes

*Multi-Family Homes


*New Construction

*New Residential Developments





Lifelong Connecticut Resident

Married with 2 Children, 3 Grandchildren


Golf Enthusiast

Areas Covered:

I specialize in Fairfield and New Haven Counties. *Shelton *Trumbull *Stratford *Bridgeport *Fairfield *Milford *Danbury Beacon Falls *Brookfield *Naugatuck Valley It doesn't stop there - I can also refer to anywhere in the world! Niche Marketing My background in customer service and technology gives me a step ahead of the competition. I use every available Marketing Resource to make your home stand out.