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If you’re ready to make the leap into homeownership but are concerned about coming up with a large down payment, we can help. At Innovative Mortgage Brokers we have access to a variety of low down payment mortgage options that are perfect for first-time homebuyers.

We can provide tailored advice and competitive rates to ensure you receive the loan for your individual needs. Whether you’re looking for government-backed programs such as FHA or VA loans, or want to explore more conventional options, we can help you find the right fit.

Low Down Payment Options

FHA Loan

FHA mortgages are government-insured loans that are designed to make financing more accessible. They require lower downpayment and have less stringent qualifying criteria than conventional loans – making them perfect for those looking to purchase their first property.

You can purchase a single-family home or condominium with as little as 3.5% down payment using an FHA loan, but there is a price – mortgage insurance (often called PMI, private mortgage insurance).

Conventional Loans

Conventional mortgages are one of the most popular forms of home loans, providing buyers with several advantages including lower interest rates and more flexibility when compared to other loan programs. A conventional mortgage is usually ideal for buyers with good credit and debt to income ratios.

Many buyers can also take advantage of private mortgage insurance (PMI), which reduces the risk for lenders when providing financing to buyers with limited resources or small down payments. Mortgage insurance is required when the loan amount is MORE than 80% of the purchase price (down payment is less than 20%). Also, the lower the down payment, the higher the premium ratio charged.


Is your dream home surrounded by pasture and farmland? USDA mortgages offer a great opportunity for first-time homebuyers to purchase a home with no-down payment and low interest rates. This type of loan is insured by the US Department of Agriculture and designed to help buyers in rural areas become homeowners.

Additionally, eligible borrowers can take advantage of various subsidies that provide further savings on their mortgage payments each month.

VA Loan

VA mortgages are a great option for veterans and their families, offering unique benefits and advantages. These loans provide 100% financing, so no down payment is required for the purchase of a home. Additionally, there is no mortgage insurance or private mortgage insurance required with VA mortgages. This can mean big savings for borrowers over the life of the loan.

How much should I use for a down payment?

There are costs and benefits to any option, including those with low down payments. You should carefully consider your options and discuss your plan with a professional.

Talk to one of our loan specialists today to come up with a customized solution that best fits your needs and budget.

Cost of a Lower Down Payment

Lowering the downpayment on a mortgage may seem like a great way to save money, but it can actually end up costing more in the long run. A lower down payment could result in higher monthly payments due to an increase in interest rate, and you may also have to pay for private mortgage insurance (PMI) if your down payment is less than 20%.

Benefits of Lower Down Payments

Though the disadvantages of low down payments seem serious, there are also advantages. Take time to weigh the two and assess which is the best for you.

One of the main benefits of a lower downpayment on a mortgage is that it can allow buyers to become homeowners soon. Another benefit could be opportunity cost. In some cases, the investor can make more money from available cash by placing it in other investments.

During the first few years of the mortgage loan, the bulk of your monthly payments go towards paying interest – which is usually tax-deductible. So you get quite a bit of your monthly payments back at the end of the year in the form of tax deductions.

Personal Consideration

Depending on where you live and your income level, there may also be state or local government-funded programs available to help with the cost of a mortgage down payment.

Click Here for a list of some of the programs accepted. For a detailed list, give us a call.

Carefully consider the amount of money that you want to put down. Your lender will qualify you for a certain level based on your income; however, that amount may be different from the level that you feel comfortable paying each month. You must decide what you personally can afford.

If you have any questions about mortgages or your personal financial situation, don’t hesitate to give us a call. We can provide personalized advice and support throughout the entire process. We understand that everyone’s financial needs are different, which is why we take a tailored approach to helping you find the perfect loan program for your individual situation.
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