Best mortgage lenders for low or no down payment in February 2026

Still think you need a 20% down payment to buy a house? Hardly — the median down payment for first-time homebuyers in 2024 was 10%, according to the National Association of Realtors, the highest since 1989.

For some borrowers, even that is too high a hurdle. Fortunately, there are many options available to borrowers with little or no money to put down at closing — from government-backed FHA and VA loans to generous down payment assistance grants.

CNBC Select has named the best lenders for low- or no-down-payment mortgages across various categories.

For more on how we made our selections, see our methodology.

Who's this for? Online lender Rocket Mortgage makes it easy to apply from the comfort of home, with a digital application process, web chat and screen-sharing features, plus above-average customer satisfaction scores from J.D. Power.

Standout benefits: Eligible borrowers can put as little as 1% down with a ONE+ loan from Rocket, and the lender will add another 2% in a non-repayable grant. Rocket also offers government-backed HomeReady and Home Possible loans, which only require 3% down.

Who's this for? Guild's Zero Down mortgage combines a 3.5% FHA loan with a forgivable second mortgage, bringing your down payment down to nothing. Even better, borrowers can be approved with credit scores as low as 600.

Standout benefits: Guild offers several low-down-payment options, including the zero-down Arrive Home loan for borrowers earning up to 160% of the area median income. If borrowers come with 1% down, the Guild 1% Down mortgage will kick in 2% of the home price.

Who's this for? FHA loans only require 3.5% down for creditworthy buyers, and Pennymac's rates for these government-backed mortgages are well below the industry average. That's probably why it closed more FHA loans than any other lender in 2024.

Standout benefits: With Pennymac's BuyerReady Certification preapproval process, borrowers can get $1,000 towards closing costs. Using a real estate agent in Pennymac's Home Connect network can get you up to $9,500 back after closing.

Who's this for? Flagstar Bank has a range of homebuyer assistance programs, including the Destination Home Mortgage, which enables borrowers in eligible counties to purchase a home with zero down payment, no mortgage insurance and a FICO score of 600.

Standout benefits: The Flagstar Gift Program provides up to $10,000 toward a down payment. Additionally, first-time buyers in designated census tracts can get up to $8,000 in grant and gift funds with the Power Up program.

Who's this for? Navy Federal has three no-down-payment options for military families — traditional VA loans, Military Choice and Homebuyers Choice mortgages, which allow sellers to contribute up to 6% of their home's value towards closing costs.

Standout benefits: If you find a better rate elsewhere, Navy Federal will match it or give you $1,000 after closing with that competitor. Homebuyers who buy through Navy Federal's RealtyPlus program can receive up to $9,000 in cash back.

Who's this for? PNC is one of the few big banks that offer USDA loans, which are zero-down mortgages for properties in select rural and suburban regions. Not only do you enjoy a lower interest rate, but you can skip mortgage insurance and don't have to show substantial cash reserves.

Standout benefits: PNC's speedy preapproval process can get you an answer within 30 minutes. Borrowers in eligible locations may qualify for a grant of up to $7,500 toward closing costs, down payment or other fees.

If you are financing a home purchase, the down payment is the portion you pay in cash up front. A 20% down payment on a $500,000 house, for example, would be $100,000. You'd need financing for the remaining 80% ($400,000).

A down payment demonstrates to a lender that you're financially invested in the property and are unlikely to default on mortgage payments. It's usually made with a certified check, cashier's check or a wire transfer.

In 2025, the median down payment for first-timers averaged 10%, according to the National Association of Realtors, the highest they've been since 1989.

If you put down less than 20%, however, you'll likely need private mortgage insurance.

VA loans and USDA loans can be approved with nothing down, but other mortgages have minimum down payment requirements:

• For conventional mortgages, lenders typically require a down payment of at least 5%.
• The minimum down payment for an FHA loan is 3.5% for borrowers with a credit score of at least 580. With a score between 500 and 579, you'll need to put 10% down.
• For a jumbo loan, you may need to make a down payment of 10% to 30%.

There are different strategies to saving up a down payment and most can be deployed in tandem.

1. Open a dedicated account

A high-yield savings account or money market account will grow your money faster and you can funnel a portion of your paycheck into it each month by setting up an automatic transfer. In addition, having it be a separate account will help you fight the urge to dip into your fund for other reasons.

2. Set a timeline

Consider how long you want to save for a home and devise a budget that allows you to meet your goal within that timeframe. You may realize you need more time to pay down debts and improve your credit score to qualify for a better rate.

3. Cut expenses

Where can you trim expenses? It might mean eating out less, canceling streaming services or finding cheaper car insurance. If you rent, you may want to consider looking for a more affordable place or even moving back home with your family.

4. Earmark tax refunds and bonuses

Another savings strategy is to commit to funneling any tax refunds, work bonuses, cash gifts or other extra money that comes your way into your down payment fund.

According to the IRS, the average federal refund in 2025 was nearly $3,000. That could give your nest egg a considerable boost.

There are several government-backed home loans.

At CNBC Select, our mission is to deliver high-quality service journalism and comprehensive consumer advice to our readers, enabling them to make informed financial decisions. Every mortgage review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of home loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content independently of our commercial team and any outside third parties, and we pride ourselves on maintaining high journalistic standards and ethics.

CNBC Select analyzed 42 mortgage lenders o determine which are the best for low or no-down payment loans. We focused on the following features:

Minimum down payment: We favored lenders that offered specialty loans with lower down payment requirements or that offered government-backed FHA, VA and USDA loans. 

Credit score: Most lenders require a FICO score of 620 or higher to secure a conventional mortgage. We noted if a lender had options for borrowers with lower credit scores.

Closing times: We gave more weight to lenders with shorter-than-average closing times or that guaranteed an on-time closing.

Fees: The mortgage process includes origination, application and underwriting fees, as well as charges for appraisals, title insurance, attorneys and other closing costs. Whenever possible, we noted if a lender had lower fees, discounts or waived certain fees.

Application process: We considered whether a lender offered an online preapproval and application process, as well as whether it had branches for an in-person experience. 

Customer service: We gave more weight to lenders that scored highly on J.D. Power's mortgage origination and servicing surveys. We also noted if they had robust customer service phone hours and a website with an online chat feature and educational resources.

We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.

Based on that criteria, our recommendations for the best mortgage lenders for a low down payment are:

• Best online lender: Rocket Mortgage
• Best for no down payment: Guild Mortgage
• Best for FHA loans: Pennymac
• Best for down payment assistance: Flagstar Bank
• Best for VA loans: Navy Federal Credit Union
• Best for USDA loan: PNC Bank

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