Low Down Payment Mortgage Options


Trying to figure out how much of a down payment you need to buy a home? You're not alone. A lot of home buyers have questions about down payments, like how big of a down payment do I need. So to help you make the best decision, here's what you need to know about down payments.

Low Down Payment Mortgages | Home Loans in Utah | Cache Valley Mortgage Company

What is a Down Payment?

A down payment is the money you pay upfront when you buy a home; it’s your initial investment. Your down payment is combined with your mortgage to fulfill the entire purchase price of the home. While your mortgage is borrowed money, your down payment typically comes from your own funds, or through some form of down payment assistance.

Is a Down Payment Required to Buy a House?

You’re not always required to use a down payment to buy a home. Some of the mortgage programs you’ll see below don’t require a down payment (USDA and VA). If you meet the requirements to use one of these programs, you can buy a home for your primary residence without providing money for a down payment.

Is Down Payment Assistance Available?

You can definitely get help with your down payment! Here are a few common forms of down payment assistance:

  • A family member can provide part, or all, of your down payment as a gift.

  • Many local government programs offer assistance, usually through a small 2nd mortgage or grant money. Our Down Payment Assistance Tool can help you see what assistance is available in the area where you want to buy.

What Down Payment do I Need to Buy a Home?

Luckily you don’t have to provide a big 20% down payment to get a good mortgage, so don’t worry about selling your kidney or robbing a bank! There are a lot of mortgage loans with affordable down payment options. Here are some low, and no, down payment mortgage options you can use to buy a new home:

Low Down Payment Mortgage Loans | Utah Mortgage Company | Cache Valley Utah Loans

0% (No) Down Payment - USDA Home Loan

USDA home loans are extremely popular because they're a no down payment mortgage with great interest rates. They’re also very affordable. USDA home loans are sometimes called a Rural Housing Loan because the property must be located in a rural area, but the definition of rural is pretty broad. Only a few places around Cache Valley are not eligible for a USDA loan.

0% down payment, 30 year fixed rate mortgage,

4.624% annual percentage rate as of 6/13/2018

580 credit score required

0% (No) Down Payment - VA Home Loan