Best mortgage lenders for low and no down payments in 2025

A down payment is the portion of your mortgage you need to pay upfront. Saving up that much money can be a real obstacle on the road to homeownership.

But there's good news: There are many low- and no-down-payment options available, from specialized loans from private lenders to government-backed mortgages, like USDA and VA loans.

CNBC Select picked the best lenders that offered mortgage with down payments of 3.5% or less in a variety of categories. (See our methodology for more on how we made our selections)

Who's this for? Don't have a lot saved up? Guild's Zero Down mortgage combines a 3.5% FHA loan with a forgivable second mortgage that brings your down payment to 0%. Borrowers can be approved with credit scores as low as 600.

Standout benefits: In addition to the Zero Down mortgage, Guild has the Arrive Homeâ„¢ loan, another zero-down mortgage for borrowers who earn up to 160% of the area median income.

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Who's this for? Check out New American Funding if you want to hold onto more of your money. At the time of writing, its rates were below average for both 15 and 30-year fixed-rate mortgages.

Standout benefits: You can be approved for a conventional mortgage with as little as 3% down and no mortgage insurance. NAF also guarantees closing within 14 business days, shorter than any lender on this list.

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Who's this for? Ally Bank doesn't charge lender fees, which can be as much as 2% of your loan total. On a $300,000 mortgage, that would save you $6,000.

Standout benefits: Ally is one of the few major lenders offering the Freddie Mac-backed HomeOne® mortgage, which only requires 3% down and has no income requirements. If you're buying in Philadelphia, Detroit or Charlotte, North Carolina, you may qualify for a $5,000 closing cost grant.

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Who's this for? If you don't take home a huge paycheck, Chase Bank's DreaMaker loan could be the low-down-payment mortgage for you. Borrowers who make up to 80% of the area median income can put as little as 3% down. Income requirements have been lifted in 15 metro areas — including New York City, Los Angeles, Atlanta and Chicago — and applicants in those cities can also qualify for a $7,500 grant to put towards a down payment, rate buydown or closing costs.

Standout benefits: Chase also has the Standard Agency loan, a 3%-down mortgage for first-time homebuyers with a 680 credit score.

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Who's this for? Navy Federal Credit Union has three no-down-payment options for military families: In addition to traditional VA loans, it offers Military Choice and Homebuyers Choice mortgages, both of which allow sellers to contribute up to 6% of the home's value toward closing costs.

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

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Who's this for? PNC is one of the few big banks that offers USDA loans, zero-down mortgages backed by the U.S. Department of Agriculture for properties in select rural and suburban regions. Not only do you get 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 approval 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 costs.

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Who's this for? If you want the ease of homebuying from home, Rocket Mortgage isn't just an online lender: It's the largest mortgage provider in the U.S. and continually tops JD Powers' mortgage satisfaction surveys.

Standout benefits: Borrowers who meet income requirements can put as little as 1% down on a Rocket ONE+ loan without paying private mortgage insurance. Rocket also offers government-backed HomeReady and Home Possible loans, which only require a 3% down payment.

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Guild Mortgage offers conventional and government-backed mortgages in all states except New York. The Homebuyer Express guarantee ensures closing in 17 days or borrowers receive $500 in closing costs (not available in Oregon). While Guild received an A+ from the Better Business Bureau and scored highly on JD Powers' 2023 mortgage originator survey, it was ranked near the bottom for mortgage servicing.

Minimum credit score

600 for Zero Down, 620 for Arrive Home

Minimum down payment

0% for an Arrive Home or Zero Down, 0% for VA or USDA loan, 1% for conventional loans

Types of mortgages offered

Conventional, FHA, VA, USDA, jumbo

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New American Funding is licensed to lend everywhere except Hawaii and New York and, unlike many lenders, displays sample rates online. While it ranked below average in JD Power's mortgage origination survey, NAF lands near the top for mortgage servicers and received an A from the Better Business Bureau.

Minimum credit score

620

Minimum down payment

3% for conventional, 3.5% for FHA loans, 0% for VA or USDA

Types of mortgages offered

Conventional, jumbo, FHA, VA, USDA

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Ally Bank can preapprove you in as little as three minutes and lock in your rate within 24 hours. The average closing timeline with Ally is 35 days, a week less than the national average.

Minimum credit score

620

Minimum down payment

3% with HomeReady loan

Types of mortgages offered

Conventional, jumbo, HomeReady, HomeOne®

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Chase Bank has branches in 48 states and mortgage advisors in 38. It guarantees on-time closing in as little as 21 days or eligible homebuyers may get a $5,000 rebate.

Minimum credit score

620 for conventional loans, 580 for FHA

Minimum down payment

3% for DreaMaker or Standard Agency loan, 0% for VA

Types of mortgages offered

Conventional, FHA, VA, jumbo, DreaMaker, Standard Agency loans

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Navy Federal Credit Union is the largest credit union in the U.S., but membership is limited to active service members, veterans, Reservists, Defense Department staff and their families. The 1.00% origination fee can be waived if you opt for a 0.25% rate increase instead and borrowers can apply with non-traditional credit sources, like rent and utility bills.

Minimum credit score

Not disclosed

Minimum down payment

0% for VA, Military Choice or Homebuyers Choice loans; 3% for conventional loans

Types of mortgages offered

Conventional, VA, jumbo, Military Choice, Homebuyers Choice

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PNC Bank has more than 2,300 retail locations in 28 states, although it services mortgages nationwide. It has an A+ rating from the Better Business Bureau and scored above average in JD Power's 2023 U.S. Mortgage Servicer Satisfaction Survey.

Minimum credit score

620 for conventional, 580 for FHA

Minimum down payment

0% for USDA or VA, 3.5% for FHA

Types of mortgages offered

Conventional, FHA, VA, USDA, jumbo and doctor loans and low-down-payment PNC Community Loan

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Rocket Mortgage offers verified approval in as little as two hours, with an average closing time of 22 days, nearly half the industry average. Using the Rocket Visa Signature Card can earn you points toward mortgage payments or a down payment on a future Rocket Mortgage home loan.

Minimum credit score

620 for conventional loans, 580 for FHA loans

Minimum down payment

1% for Rocket ONE+, 3% for HomeReady or Home Possible, 3.5% for FHA, 0% for VA

Types of mortgages offered

Conventional, FHA, VA, jumbo, HomeReady, Home Possible, Rocket ONE+

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There are several home loans guaranteed by the federal government.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. 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 without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

To determine which mortgage lenders are the best, CNBC Select analyzed dozens of U.S. mortgages offered by both online and brick-and-mortar banks, including large credit unions, that come with fixed-rate APRs and flexible loan amounts and terms to suit an array of financing needs.

When narrowing down and ranking the best mortgages, we focused on the following features:

• Fixed-rate APR: Variable rates can go up and down over the lifetime of your loan. With a fixed rate APR, you lock in an interest rate for the duration of the loan's term, which means your monthly payment won't vary, making your budget easier to plan.
• Types of loans offered: The most common kinds of mortgage loans include conventional loans, FHA loans and VA loans. In addition to these loans, lenders may also offer USDA loans and jumbo loans. Having more options available means the lender can cater to a wider range of applicant needs. We have also considered loans that would suit the needs of borrowers who plan to purchase their second home or a rental property. 
• Closing timeline: The lenders on our list offer closing timelines that vary from as promptly as two weeks after the home purchase agreement has been signed to as many as 45 days after the agreement has been signed. Specific closing timelines have been noted for each lender.
• Fees: Common fees associated with mortgage applications include origination fees, application fees, underwriting fees, processing fees and administrative fees. We evaluate these fees in addition to other features when determining the overall offer from each lender. Though some lenders on this list do not charge these fees, we have noted any instances where a lender does. 
• Flexible minimum and maximum loan amounts/terms: Each mortgage lender provides a variety of financing options that you can customize based on your monthly budget and how long you need to pay back your loan.
• No early payoff penalties: The mortgage lenders on our list do not charge borrowers for paying off the loan early. 
• Streamlined application process: We considered whether lenders offered a convenient, fast online application process and/or an in-person procedure at local branches. 
• Customer support: Every mortgage lender on our list provides customer service via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
• Minimum down payment: Although minimum down payment amounts depend on the type of loan a borrower applies for, we noted lenders that offer additional specialty loans that come with a lower minimum down payment amount. 

After reviewing the above features, we sorted our recommendations by best for no down payment, affordability, no lender fees, low-income borrowers, VA loans, USDA loans and online lenders.

Rates and fee structures advertised for mortgages fluctuate in accordance with the Federal Reserve rate. However, once you accept your mortgage agreement, a fixed-rate APR will guarantee your interest rate and monthly payment will remain consistent throughout the entire term of the loan, unless you choose to refinance your mortgage at a later date for a potentially lower APR. Your APR, monthly payment and loan amount depend on your credit history, creditworthiness, debt-to-income ratio and the desired loan term. To take out a mortgage, lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more.

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