Not sure if a low down payment is the right choice for you?

Choosing the Right Down Payment for Your Home

Deciding how much to put down on a home can be overwhelming. At Certified Home Loans, we’re here to simplify the process and help you find the best option based on your financial situation and goals.

Low Down Payment Loan Options

FHA Loan – As Low as 3.5% Down

An FHA loan allows you to buy a home with as little as 3.5% down, making homeownership more accessible. However, if your down payment is less than 20%, you’ll be required to pay mortgage insurance (PMI), which increases your monthly costs.

USDA Loan – No Down Payment Required

If you’re purchasing a home in an eligible rural or suburban area, a USDA loan offers 100% financing with no down payment. Keep in mind that household income limits apply, and PMI may be required for lower down payments.

VA Loan – 100% Financing for Veterans

Eligible military veterans and service members can take advantage of VA loans, which provide zero down payment financing with favorable terms. VA loans are a great benefit for those who qualify, offering affordable homeownership with no PMI.

Other No & Low Down Payment Options

Non-conforming loan programs, such as 80/20 mortgage setups, allow buyers to take out a second mortgage to cover the 20% down payment—eliminating the need for PMI. Even if you have less-than-perfect credit or income, there may be alternative loan programs that fit your needs.

How Much Should You Put Down?

There are pros and cons to different down payment amounts. Choosing the right option depends on your financial situation, long-term goals, and budget. Consulting with a Certified Home Loans specialist can help you create a customized mortgage strategy.

Cost of a Lower Down Payment

While low or no down payment options make homeownership more accessible, they come with higher monthly costs due to:
✅ Higher interest rates
✅ Mortgage insurance premiums (PMI)

The good news? PMI can be removed once you build at least 20% equity, often by refinancing.

Benefits of a Lower Down Payment

Despite the added costs, low down payment programs offer significant advantages:
✔ Less upfront cash needed – Keep more money for savings or investments.
✔ Higher return on investment – Your home appreciates regardless of how much you put down.
✔ Opportunity cost advantage – Invest excess funds elsewhere for potential higher returns.
✔ Tax benefits – The interest portion of your mortgage may be tax-deductible, potentially saving you money.

Final Considerations

Your lender will approve you for a specific loan amount based on your income and credit profile, but the key question is: What are you comfortable paying each month?

Let’s find the right mortgage solution for you! Schedule a consultation with Certified Home Loans today and take the next step toward homeownership with confidence.