You don’t need 20% down to buy a home. In fact, many low down payment mortgage loans let you buy with as little as 3%. That means you can stop renting and start building equity sooner than you thought possible.
Best Mortgage Loans with Low Down Payments:
-
FHA Loans: 3.5% down with mortgage insurance
-
Conventional Loans (via Fannie Mae or Freddie Mac): 3% down with good credit
-
VA Loans: 0% down with no PMI
-
USDA Loans: 0% down for eligible rural properties
Pros:
-
Faster path to homeownership
-
Leave room in your budget for renovations or furniture
-
Take advantage of growing home values over time
Cons:
-
You’ll pay Private Mortgage Insurance (PMI) unless you use a VA or USDA loan
-
Higher loan-to-value ratio may increase your interest rate
Tips for Success:
-
Improve your credit to offset the low down payment
-
Use seller concessions to reduce closing costs
-
Consider mortgage points to lower your interest rate
High-value keyword: low down payment mortgage loan
5. How to Get Mortgage Preapproval Online in Under 24 Hours
Want to stand out in a competitive real estate market? A mortgage preapproval online can give you the edge. With technology streamlining the mortgage process, you can now get preapproved in a matter of hours without visiting a branch.
What Is a Mortgage Preapproval?
It’s a written statement from a lender indicating how much you can borrow based on your credit, income, and debts. Preapproval shows sellers you’re serious and ready to close quickly.
Documents Needed:
-
Proof of income (W-2s, pay stubs)
-
Credit check authorization
-
Asset statements (checking/savings)
-
ID and social security number
Benefits of Online Preapproval:
-
Faster turnaround (often same day)
-
Convenient uploads and digital signatures
-
Multiple rate quotes for comparison
Top Online Lenders Offering Fast Preapproval:
-
Rocket Mortgage
-
Better Mortgage
-
SoFi
-
Ally Home
Next Steps After Preapproval:
-
Start house-hunting within your approved range
-
Lock in a rate as soon as possible
-
Submit a full application once your offer is accepted
High-value keyword: mortgage preapproval online