13 Best Lenders for Low- and No-Down-Payment Mortgages in 2025
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You can get a mortgage with as little as 3% down, or even zero down payment if you qualify for specialty government-backed programs.
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Why trust NerdWallet
- 50+ mortgage lenders reviewed and rated by our team of experts.
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- Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
Our 2025 Best-Of Award Winner
NMLS#3030
13 Best Lenders for Low- and No-Down-Payment Mortgages in 2025
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Lender ▾ ▾ | NerdWallet Rating ▾ ▾ | Min. credit score ▾ ▾ | Min. down payment ▾ ▾ | Learn more |
|---|---|---|---|---|
 Rocket Mortgage, LLC: NMLS#3030 Top 3 most visited 🏆 Learn more at Rocket Mortgage, LLC | 620 | 1% | Top 3 most visited 🏆 Learn more at Rocket Mortgage, LLC | |
620 | 3% | Learn more at NBKC | ||
620 | 3% | |||
N/A | 3.5% | Learn more at First Federal Bank | ||
620 | 0% | Learn more at Veterans United | ||
620 | 3% | Learn more at Northpointe | ||
 PNC Bank: NMLS#446303 Compare More Lenders on NerdWallet | 620 | 3% | Compare More Lenders on NerdWallet | |
 Flagstar: NMLS#417490 Compare More Lenders on NerdWallet | N/A | 5% | Compare More Lenders on NerdWallet | |
 Pennymac: NMLS#35953 Compare More Lenders on NerdWallet | 620 | 3% | Compare More Lenders on NerdWallet | |
 Network Capital: NMLS#11712 Compare More Lenders on NerdWallet | 620 | 3% | Compare More Lenders on NerdWallet | |
 U.S. Bank: NMLS#402761 Compare More Lenders on NerdWallet | N/A | N/A | Compare More Lenders on NerdWallet | |
 SoFi: NMLS#696891 Compare More Lenders on NerdWallet | 620 | 3% | Compare More Lenders on NerdWallet | |
 Wells Fargo: NMLS#399801 Compare More Lenders on NerdWallet | 620 | 3% | Compare More Lenders on NerdWallet |
Rocket Mortgage, LLC: NMLS#3030
620
1%
- Why We Like ItRocket Mortgage is the largest mortgage lender by volume, standing out for its range of affordable borrowing options, down payment assistance and closing cost credits.Pros
- Reported average time to close is 15 days faster than industry average.
- FHA and VA loans make up 40% of Rocket Mortgage’s total loan volume.
- Borrowers can apply via mobile app.
Cons- Origination fees are on the higher end, according to the latest federal data.
- No construction or renovation loans.
- Physical branches are only available in Detroit, Cleveland, and Phoenix.
- Why We Like ItNBKC has a user-friendly website and low average rates, but the mobile app is not aimed at mortgage borrowers and browsing customized mortgage rates requires supplying your name and contact information.Pros
- Mortgage rates are on the low side compared to other lenders, according to the latest federal data.
- VA loans represent more than a quarter of purchase volume, a larger share than many lenders NerdWallet reviews.
- Offers a variety of loan types for purchase and refinance, including fixed- and adjustable-rate loans and government options
Cons- HELOCs and no-down-payment loans are available only in the Kansas City metro area.
- Mobile app focuses on online banking, not mortgages.
- You’ll need to share contact information to see customized mortgage rates.
- Why We Like ItRate boasts a streamlined application process, with full underwriting in as little as one business day, though average fees are higher than many competitors’.Pros
- Fully underwritten mortgage approval in as little as one day for qualified borrowers.
- Generous selection of loans, including government-backed, interest-only, jumbo and renovation.
- Advertises a HELOC that can be funded in as few as five business days.
Cons- Origination fees are on the high side, according to the latest federal data.
- HELOC requires immediate, full withdrawal of funds.
First Federal Bank: NMLS#408902
N/A
3.5%
- Why We Like ItFirst Federal Bank Mortgage Lenders, an online-only lender, stands out for its focus on government loan lending and low average mortgage rates.Pros
- Almost a quarter of all loans last year were FHA loans.
- Average mortgage rates are on the lower side, according to the latest federal data.
- Offers 15-, 20-, 25-, and 30-year repayment terms, which is unusually flexible.
Cons- No dedicated mobile app for mortgage borrowers.
- Some loans are geographically limited.
- Why We Like ItVeterans United is the largest VA loan originator in the country by far, according to the latest federal data.Pros
- Specializes in working with military borrowers.
- Offers VA refinancing.
- Sample interest rates are posted online.
Cons- Interest rates are on the higher end compared to other VA lenders.
- Does not offer VA renovation loans.
Northpointe: NMLS#447490
620
3%
- Why We Like ItIn addition to standard options like conventional and government-backed loans, including FHA loans, Northpointe Bank’s mortgage portfolio includes rarer offerings like doctor loans, condominium loans, investment property loans and loans for borrowers with credit challenges.Pros
- Closing may be available within 15 business days.
- Offers loans and programs aimed at making homeownership more accessible.
- Offers mortgages for investment properties, including jumbo loans.
Cons- Average mortgage origination fees are on the high side, according to the latest data.
- Bank’s mobile app isn’t useful for mortgage borrowers.
- Why We Like ItPNC Bank has a variety of appealing mortgage options, including jumbo loans, programs for first-time home buyers and home equity lines of credit.Pros
- Low-down-payment loan options include FHA, VA, USDA and PNC Community Loan.
- Jumbo loans available with minimum down payments of 5%.
- Customizable mortgage rates are posted online.
Cons- Average mortgage rates are on the high side, according to the latest federal data.
- In-person service is not available in every state.
- You’ll have to supply personal data or account info to get answers by phone.
- Why We Like ItFlagstar Bank stands out for its range of accessible loans and programs, including loans with flexible requirements and down payment grant options. Its mortgage operations were acquired by Mr. Cooper in 2024.Pros
- Conventional loan terms extend to 40 years, which is unusually flexible.
- Offers options for high-balance mortgages.
- Offers specialized mortgages for professionals, such as doctors and lawyers, starting their careers.
- Reported average time to close (20-30 days) is faster than industry standard.
Cons- The lender’s mobile app is focused on banking, not mortgages.
- Conventional fixed-rate mortgages require a 5% minimum down payment, higher than some competitors.
- Why We Like ItPennymac, known for its government loans, stands out for a transparent digital experience. Interest rates tend to be low, but origination fees may be a bit high.Pros
- Easy to personalize a quote and apply online.
- Can lock in a rate before you’re under contract, earlier than most lenders.
- Perks include a 1% interest rate buydown and “refinance later” cash bonus.
Cons- Origination fees are on the higher end, according to the latest federal data.
- Online chat is available only in the logged-in experience.
- No home equity lines of credit or renovation loans.
Network Capital: NMLS#11712
620
3%
- Why We Like ItNetwork Capital stands out for its wide range of mortgage offerings, including niche products like physician loans, non-QM loans, ITIN loans and mortgages for manufactured homes.Pros
- Reported average time to close is 20 days, far below the industry average.
- Products like non-QM loans and ITIN loans make borrowing more accessible.
- HELOCs offer long draw terms, up to 30 years.
Cons- The lender’s website offers limited loan details.
- HELOCs have a minimum loan amount of $50,000.
U.S. Bank: NMLS#402761
N/A
N/A
- Why We Like ItU.S. Bank stands out for online convenience and impressive mortgage options, from government-backed loans to boutique mortgages. Home improvement loans and borrower assistance are available.Pros
- Offers up to $17,500 in down payment and closing cost assistance.
- Wide variety of mortgage types.
- Experienced with construction-to-permanent and renovation loans.
Cons- Assistance programs limited to select cities and states.
- Online rate tool doesn’t customize by credit score.
- Why We Like ItSoFi offers standard purchase and refinance mortgage options, but not construction or renovation loans, and stands out for its convenient one-stop-shopping setup.Pros
- Offers a credit up to $10,000 if closing exceeds the contract date and the lender is at fault.
- Sample mortgage rates are highly customizable.
- HELOC borrowers may access up to 90% of their home equity.
Cons- Borrowers may experience difficulty with customer service.
Wells Fargo: NMLS#399801
620
3%
- Why We Like ItWells Fargo has significant upsides and shortcomings. Sample rates are easy to view, assistance programs may apply and the lender earns solid scores in our rankings, but its consumer trust track record is rough.Pros
- Sample rates are shown for various loan products, along with the type of borrower and loan that would get them.
- Offers generous down payment and closing cost assistance programs for qualified borrowers.
- Market leader in number of jumbo loans and refinances originated, according to the latest federal data.
- Rate-and-term refinance interest rates offered are lower than average, according to the latest federal data.
Cons- Home loans business is broadly focused on existing bank customers.
- Doesn’t offer specialty home loans or equity borrowing (home equity loans or HELOC).
- Scandals and government actions have damaged consumer trust in recent years.
A zero-down-payment home loan might sound impossible, but they're out there. Some home loans, such as VA loans, backed by the Department of Veterans Affairs, and USDA loans, guaranteed by the U.S. Department of Agriculture, require no down payment.
If you don't qualify for those, you still have options. Some conventional loans allow down payments as low as 3%. FHA loans, insured by the Federal Housing Administration, require at least 3.5% down.
Pros and cons: Low- and no-down-payment home loans
✅ Pros:
Buy a home sooner.
You don’t have to wait to save for a down payment.
Start building home equity right away.
❌ Cons:
Higher interest rates.
Higher monthly payments.
Less home equity.
You’ll likely pay mortgage insurance.
VA loans charge a one-time VA funding fee.
If home values drop, you could owe more than your home is worth.
Credit scores for low- or no-down-payment mortgages
Your credit score affects what loan you qualify for and how much you need to put down.
🏠 FHA loans: 580+ for 3.5% down. 500-579 needs 10% down. (See our list of best lenders for bad credit.)
🏠 Conventional loans: 620+ is usually required. Some, like HomeReady and Home Possible, help lower-income borrowers.
🏠 VA loans: 620+ is often required for eligible borrowers, though there’s no official minimum.
🏠 USDA loans: 640+ for fast approval. Lower scores may qualify but need extra review.
More from NerdWallet
Last updated on March 6, 2025
Frequently asked questions
You may be able to get a conventional loan with a down payment as low as 3%. An FHA loan, which is insured by the Federal Housing Administration, requires a minimum down payment of 3.5%. Some loans — such as VA and USDA loans — can be secured with no money down.
Sometimes, but not always. Some no-down-payment mortgages have income limitations depending on where the property is located, like USDA loans, which are guaranteed by the United States Department of Agriculture. VA loans, backed by the Department of Veterans Affairs, have no income restrictions and don't require a down payment.
VA and USDA loans may allow you to purchase a home with no down payment or mortgage insurance. Both of these loans have fees that cover the cost of foreclosure in the event you default on the mortgage loan, however.
No, low-down-payment mortgages aren't limited to first-time home buyers. FHA loans are popular with first-time home buyers because of the minimum 3.5% down payment requirement and relaxed credit score requirements. With some 3% down conventional loans, such as HomeReady and Home Possible, a homeowner education course is required if all borrowers are first-time home buyers.
Methodology
The star ratings on this page reflect each lender's overall star ratings. Read more about how we determine those ratings.
The lenders on this page are chosen using this methodology:
NerdWallet reviewed more than 40 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (measured among lenders with at least a 1% market share), lenders with significant online search volume and those that specialize in serving various audiences across the country.
For inclusion in this roundup, lenders must have an overall score of 4.5 or higher. FHA, USDA and VA loans must each make up at least 1% of the lender's home purchase loan volume, according to the latest HMDA data or FHA and VA loans must each make up at least 1% of the lender's home purchase loan volume and the lender must offer a mortgage program with a minimum down payment of 3% or less or for borrowers with a credit score as low as 620.
NerdWallet solicits information from reviewed lenders on a recurring basis throughout the year. All lender-provided information is verified through lender websites and interviews. We also utilized the latest HMDA data for origination volume, origination fee, average interest rate and share-of-product data.
NerdWallet's Best Lenders for Low- and No-Down-Payment Mortgages in 2025
- Rocket Mortgage, LLC: Best for low-down-payment loans
- NBKC: Best for customer satisfaction
- Rate: Best for digital convenience
- First Federal Bank: Best for government loans
- Veterans United: Best for VA loans
- Northpointe: Best for borrowers overcoming credit challenges
- PNC Bank: Best for low-down-payment loans
- Flagstar: Best for variety of loan types
- Pennymac: Best for buyer assistance
- Network Capital: Best for borrowers with nontraditional credit
- U.S. Bank: Best for down payment assistance
- SoFi: Best for conventional loans
- Wells Fargo: Best for Wells Fargo banking customers
