Perennial Funding > Blog > Mortgages > Buying a Home With a Low Down Payment

Buying a Home With a Low Down Payment

Buying a Home With a Low Down Payment

Shopping for a new home is exciting for many first time buyers. It might be possible to obtain a mortgage loan without a 20 percent down payment toward the purchase price of a home. Perennial Funding offers a variety of financing options for qualified borrowers who are interested in buying a home with a low down payment mortgage loan.

Getting a VA Loan to Buy a Home

The Department of Veterans Affairs provides government-backed financing for qualified borrowers. Generally, veterans and current service members who obtain a certificate of eligibility may be able to buy a home with a VA loan without making a down payment. Speaking with a licensed loan officer is the best way to find out about the specific requirements for VA home loans.

Lenders are often motivated to fund VA loans for eligible borrowers, as a portion of the loan is guaranteed by the Department of Veterans Affairs. While borrowers who are not disabled will pay a small funding fee toward a VA home loan, the interest rates and the loan terms are fairly competitive. Getting a VA mortgage loan with no down payment or a VA loan with a low down payment could enable a borrower to buy a home much sooner.

FHA Low Down Payment Home Loans

Buying a home with less than perfect credit could create a variety of financing challenges. However, the Federal Housing Administration offers government-backed mortgage loans that requires a borrower to provide as little as 3.5 percent toward the down payment for a home.

For instance, using an FHA mortgage loan, a borrower with favorable credit would need approximately $7,000 toward the purchase of a home that costs $200,000. With a below-average credit score or a marginal credit rating, an FHA mortgage loan might require a borrower to provide up to 10 percent toward the down payment for a home.

Our loan officers can quickly review an applicant’s qualifications for an FHA mortgage loan.

Conventional Low Down Payment Loan Programs for Home Buyers

Eligible home buyers could use a conventional loan program from Fannie Mae to secure financing with a low down payment. With three percent toward the down payment on a home, qualified buyers could borrow the remaining 97 percent of the purchase price of a home via financing from Fannie Mae.


The best low down payment loan program will vary among applicants. A mortgage lending professional can help prospective borrowers find favorable terms for a home loan. Contact Perennial Funding to get more details about affordable mortgage programs for first time home buyers.

Down Payment Qualification Analysis!

NMLS #247954
Click here for the Perennial Funding NMLS access page.

Perennial Funding LLC, 161 Washington St. Suite 950, Conshohocken, PA 19428

Loan programs are subject to credit approval. Other terms, conditions, restrictions and fees may apply. All of the information on this website is published in good faith and for general information purposes only. Perennial Funding does not make any warranties about the completeness, reliability and accuracy of this information. Any action you take upon the information on our website is strictly at your own risk and we will not be liable for any losses and damages in connection with the use of our website. The content in this website should not be construed as a mortgage loan commitment. From our website, you can visit other websites by following hyperlinks to these sites. While we strive to provide only links to useful and ethical websites, we have no control over the content and nature of these sites and the links to other websites do not imply a recommendation for all of the content found on these sites. Please be aware that when you leave our website, other sites may have different privacy policies and terms, which are beyond our control. Thank you for visiting Perennial Funding's website.
*By refinancing your existing mortgage your total finance charges may be higher over the life of the loan.

© Copyright 2015 Perennial Funding LLC All Rights Reserved.