Down Payment NO PMI
Low Down Payment & No PMI Mortgage Options More Buying Power. Lower Monthly Payments. Many homebuyers believe they need a large down payment or must pay expensive mortgage insurance (PMI) to qualify for a mortgage, but that’s not always the case. Some programs that allow you to buy a home with a low down payment and in some cases NO PMI at all, helping you save money upfront and every month.
Low Down Payment Options Several loan programs allow you to purchase a home with 3%–5% down, including:
Conventional 97% (3% Down) For first-time buyers or qualified borrowers with good credit.
HomeReady® (3% Down) Designed for low- to moderate-income buyers with flexible income options.
Home Possible® (3% Down) Freddie Mac’s program offering reduced MI and affordable terms.
FHA Loans (3.5% Down) Government-insured loans ideal for buyers with credit challenges.
Down Payment Assistance (DPA) Programs State and local programs that can help cover down payment + closing costs — sometimes up to 100% of the required funds.
What Is PMI? Private Mortgage Insurance (PMI) is typically required on conventional loans when a borrower puts down less than 20%.
However, PMI does not protect the buyer — it protects the lender. Buyers pay PMI until they reach 20% equity, unless the loan program eliminates it.
No PMI Mortgage Options Certain loans allow you to avoid PMI completely, even with a small down payment:
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- VA Loans (No PMI, No Down Payment) : Exclusive to eligible veterans, service members, and surviving spouses.0% down No monthly mortgage insurance Lower rates
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- Lender-Paid Mortgage Insurance (LPMI) : The lender pays the mortgage insurance upfront in exchange for a slightly higher interest rate — no monthly PMI payments for you.
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- Piggyback Loans (80/10/10 Program) Structure your mortgage with two loans to avoid PMI : 80% first mortgage10% second mortgage10% down payment This eliminates PMI while keeping monthly payments affordable.
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- Special Portfolio & Non-QM Programs Some lenders offer unique low down payment options with no PMI, ideal for : High-income borrowers Self-employed borrowers Strong-credit buyers wanting lower monthly payments​​
Why Choose a Low Down Payment or No-PMI Loan?
Start building equity sooner Keep savings strong for emergencies or investments Lower monthly payments Easier qualification for first-time buyers Can combine with down payment assistance for even lower upfront costs
