Are you looking to purchase a home but have been told you must have a 20% down payment in order to do so?   

Well, you may want to read this, because that’s not necessarily the case!

There are three ways to purchase a home without having a 20% deposit. 

1. FHA Loans

FHA is a government-backed loan that allows you to buy with less than 20% down. Based on a borrower’s credit score, FHA loans can have down payments that range from 3.5%-10%.

An FHA loan is a good option, however, before you jump in, there is some fine print you should know:

2. VA Home Loans

Now, these are dedicated solely to active or retired military personnel. With a VA loan, borrowers can avoid any down payment and avoid PMI. This loan is guaranteed by the Department of Veterans Affairs. While these loans are designated for military personnel, not all qualify. In order to qualify for a VA loan, the borrower must:

  • Meet the service time requirements
  • Have received an honorable discharge
  • Spouses of a veteran who died in the line of service could be eligible

3. Home Ready by Fannie Mae

If you are seeking a conventional loan with a lower down payment, Fannie Mae’s Home Ready program might be a good fit. With as little as 3% down, you can have a minimal down payment with this program. 

Factors important to consider:

  • Mortgage insurance is required if you are putting less than 20% down.
  • Borrowers may be required to attend a home education course.
  • A minimum credit score is required.
  • No geographic restrictions
  • Designed for low- to moderate-income borrowers


I hope you can see that if you don’t have 20% down to purchase a home it does not mean you have to rent! Feel free to call me at 1-978-505-1466 to discuss your options. Have a great home buying and selling day!


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