Alternative Options for Getting a Mortgage with Less Down Payment

Mortgage loan agreement application with house shaped key chainGetting enough money to pay for a home mortgage’s down payment can be difficult to some. Aside from the down payment, you also have to worry about other charges such as the prepaid costs, closing costs, and insurance. Once your loan is approved, you also need to take care of other expenses such as maintenance repairs.

That’s why it’s important that you look for other home loan options to help you with getting your mortgage, says Here’s how you can get a low—or even zero—down payment on your home mortgage:


USDA Rural Development Housing loans are only available in designated regions of the country that are qualified for it. Most loans are only available in rural areas, although some are actually near towns. You may check out the USDA’s website to see the maps that highlight eligible areas.

Navy Federal

The Navy Federal Credit Union offers qualified members with 100% financing for their mortgage. It is only applicable to members of the military, civilian employees of the U.S. Department of Defense and the military, and their family members. The only difference between VA and Navy Federal is that its funding fee is 1.75% less than the Veteran’s Affairs funding fees.

VA Loan

The Veterans Affairs or VA loan aims to assist military families and veterans alike in getting 100% financing for their mortgage. It has been existent since World War II and is available in most countries. VA loan not only requires zero down payment, but the insurance also can be applied to his existing loan, giving the homebuyer a funding fee of up to 3.3%.

The homebuyer would only need a Certificate of Eligibility from a Veterans Affairs center to prove of their military service or any one of their immediate family. Once obtained, the home buyer can then work with any lender that offers Veterans Assistance loans.