Buying a home with a low down payment
You may be able to become a homeowner, even with a modest down payment or a limited credit history. Opportunities may also exist for homebuyers with moderate incomes through programs from cities, nonprofit organizations, and financial institutions.
These examples below outline different paths to homeownership without large down payments or perfect credit scores.
Homebuyer stories
These homebuyer stories highlight different paths to homeownership without large down payments or perfect credit scores.
Michelle: Wants to start the process
Michelle is ready to become a homeowner. She has a stable job, loves her community, and plans to live in the home for the foreseeable future. However, she’s not sure whether she has enough money for a down payment on a home. For years, she’s heard buyers need to put at least 20% down to afford a home, which has kept her from starting the process.
Unfortunately, Michelle isn’t alone in this assumption. A down payment of 20% is not necessary to purchase a home. In fact, she could put as little down as 3% on a fixed-rate loan.
Now, Michelle has realized she has enough money for a down payment on a home. She’s eager to get in touch with a real estate agent to start her search!
- Note: With a low down payment, mortgage insurance will be required, which increases the cost of the loan and will increase your monthly payment. If you’re ready to start your search, talk with a home mortgage consultant about the loan amount, type of loan, property type, income, first-time homebuyer, and homebuyer education requirements to ensure eligibility.
Learn more about Wells Fargo’s low down payment options.
Rick: Returned from active duty
Rick is a service member who has recently returned from a long tour overseas. He and his wife dream of raising their two young children in a home of their own, but he’s worried his family won’t qualify for a Department of Veterans Affairs (VA) loan since he’s no longer on active duty.
However, VA loans have a variety of benefits, including:
- VA loans offer low- and no-down-payment options, so Rick and his wife can reserve part of their savings for home repairs and unexpected expenses. Up to 100% financing may be available for qualified borrowers. A no-down-payment option may be available on VA loans for qualified borrowers.
- Rick may be able to receive a grant from the government to use toward closing costs.
- VA loans don’t require monthly mortgage insurance, so Rick and his wife will instead pay a one-time VA funding fee (a percentage of the loan amount based on type of loan, military category, first-time and prior use of entitlement, and down payment amount).
Explore our VA loan benefits.
Get your personalized refinance quote to see if refinancing your home is right for you.
Talk to a mortgage consultant
Call us
1-877-510-2079
Mon – Fri: 7 am – 8 pm
Sat: 8 am – 6 pm
Central Time
Marque 9 para recibir atención en español.
Let us contact you
Enter your contact information to have a mortgage consultant call you.
Find a consultant
Use our locator to search for mortgage consultants in your area.
How was your experience? Give us feedback.
Customers must meet all eligibility requirements for the VA program. Please discuss current VA eligibility requirements with a home mortgage consultant.
If you extend your loan term, you may pay more interest over the life of your loan.
If you are a service member on active duty, an eligible spouse, partner, or dependent, or currently receiving SCRA benefits, please consult with your legal advisor prior to seeking a refinance of your existing mortgage loan. In some cases, a refinance may impact your eligibility for benefits under the Servicemembers Civil Relief Act or applicable state law.
Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A.
LRC-0324
