Low Down Payment and
Down Payment Assistance Mortgage Options
Making Homeownership More Affordable
Buying a home doesn’t always require a large down payment. At Three Bays Lending, we offer a variety of mortgage options for buyers who want to purchase a home with low upfront costs. Whether you qualify for a low down payment mortgage or need additional down payment assistance, we can help you find the best solution to make homeownership more accessible.
Low Down Payment Mortgage Options
If you have good credit and steady income but haven’t saved up for a large down payment, several mortgage programs allow you to buy a home with as little as 3% down—or even no down payment at all.
Conventional 3% Down Loans – Ideal for first-time homebuyers who qualify for a traditional mortgage but want a lower upfront cost.
FHA Loans (3.5% Down) – Government-backed financing with flexible credit requirements and lower upfront costs.
VA Loans (0% Down) – Exclusive to eligible veterans, active-duty service members, and surviving spouses, requiring no down payment.
USDA Loans (0% Down) – Available for eligible rural and suburban homebuyers, offering 100% financing.
Why Choose a Low Down Payment Mortgage?
Buy a home sooner without waiting to save for a large down payment.
Keep more cash on hand for moving expenses, renovations, or savings.
Take advantage of competitive mortgage rates with government-backed and conventional options.
Down Payment Assistance Programs
For buyers who need extra help covering their down payment or closing costs, down payment assistance (DPA) programs provide grants, forgivable loans, and low-interest financing to help make homeownership possible.
State & Local Grants – Some programs offer free down payment assistance that does not need to be repaid.
Deferred Payment Loans – Assistance that defers repayment until you sell, refinance, or pay off your mortgage.
Forgivable Loans – Loans that are forgiven after a set number of years if you stay in the home.
Employer & Non-Profit Assistance – Some employers, unions, and housing organizations offer financial help for homebuyers.
Why Use Down Payment Assistance?
Reduce or eliminate upfront costs, making it easier to buy a home.
Expand your homebuying budget by putting less money down.
Qualify for homeownership sooner without needing years of savings.
Who Qualifies for Down Payment Assistance?
— First-time homebuyers (defined as not owning a home in the last three years).
— Buyers who meet income and credit score requirements set by assistance programs.
— Homebuyers purchasing a primary residence (DPA is not available for investment properties).
— Those working with an approved lender (like Three Bays Lending!) to access these programs.