fbpx
Skip to content
  • About Us
    • Partners
    • Philanthropy
    • The Silverton Foundation
  • Find a Loan Originator
  • Loan Programs
    • Silverton Secure+
    • Community Lending
    • Conventional
    • FHA
    • VA
    • USDA
    • HomeReady® Mortgage
    • Jumbo Loans
  • Resources
    • Blog
    • Careers
    • Down Payment Assistance
    • Homeownership Center
    • News
    • Contact Us
  • Apply Now
  • Login

What are Your Down Payment Options?

June 27, 2019 | Mortgage, Credit, Financing

Requiring 20% of the loan amount is a thing of the past. 

Plenty of people in the United States dream of becoming homeowners but feel as if they’re not ready because they don’t have enough saved for a down payment. In fact, a 2018 report revealed that 61.7 percent of millennials believed they couldn’t peruse homeownership because they couldn’t afford a down payment. The good news is that there are numerous loan programs and down payment assistance options designed especially for those who need a little extra help with financing.   

These programs can be accessed through several avenues including your local or state housing authority, a nonprofit organization, or through a direct lender.  Each one provides a set amount to those who qualify that can help with a down payment or closing costs. The two main avenues that provide this assistance are grants and loans. Both are useful, yet the terms can be vastly different. While a grant usually doesn’t have to be repaid, a loan will have terms that allow you to repay a portion, or all, of the loan in installments throughout the life of your mortgage loan. Both are useful in helping cover the costs involved with buying a home.  

Programs that help with down payment assistance can be a huge help for aspiring homeowners, but keep in mind that not everyone qualifies. Factors such as income, credit score, profession, and even the location you’re looking to buy in can determine your eligibility. The first step is to see what you may qualify for. This can be done by talking with a local real estate agent who is familiar with what programs are available in your area, contacting your local housing authority, or contacting a lender about what applicable products they offer. 

Other factors to consider when exploring lower down payment options is whether you’re a first-time or repeat homebuyer, the need to complete a homebuyer education class, and whether or not there are guidelines for the type of home you can buy. How long you intend to stay in the home can also be a qualifier. Requirements differ depending on the program so due diligence through research and speaking with a qualified professional goes a long way in finding the perfect program for you and your family.  

Here’s a breakdown of just a few program types for you to consider: 

FHA 

With an FHA loan, low-to-moderate income borrowers with a credit score on the lower end can finance up to 96.5% of the value of a home. This means that you’d only have to make a down payment of 3.5%. Insured by the Federal Housing Administration and issued by an FHA-approved lender, such as Silverton Mortgage, this program has helped many people become homeowners throughout the years.  

Conventional 

This loan is not insured or guaranteed by the government but requires as little as 3% down. A higher credit score of 620 or more is required. While monthly mortgage insurance payments are required, it can be canceled once your loan-to-value ratio reaches 80%. This is the most popular loan option for most borrowers without a large down payment.  

VA 

VA loans are designed specifically to help servicemembers, veterans, and eligible spouses become homeowners. What makes this loan different from many others is its competitive interest rates without requiring a down payment along with no required mortgage insurance. VA loans are provided by private lenders with the Department of Veterans Affairs guaranteeing a portion of the loan. This makes it possible for the lender to provide more favorable terms. Silverton Mortgage is proud to support our veterans by offering VA loans to those who qualify.  

USDA 

USDA loans offer a zero-down-payment mortgage option for those who are looking to live in approved rural areas of the country. If you’re unable to get approved for a conventional loan due to income or credit and would rather tree lines over skylines, this may be the perfect avenue to homeownership. If your credit score is 650 or higher, the process is very streamlined. However, if that is not the case, you’ll need to undergo stricter underwriting standards.   

HomeReady® 

This program, backed by Fannie Mae, helps low to moderate-income borrowers buy or refinance. With reduced payments and lower credit score requirements, the most notable feature of this loan is that borrowers may be able to cancel their mortgage insurance once their home reaches 20% equity. This means lower monthly payments later.  

While there seem to be endless options when seeking a lower down payment, the most important takeaway is that needing a 20% down payment is one of many myths that have scared people from pursuing their dream of homeownership. When exploring which option is right for you, speaking with a qualified loan originator is a step in the right direction. They can help you understand the requirements for each loan or grant type and how you can best prepare to take advantage of them. 

Share This Article

You Might Also Like

April 9, 2025 | Helpful

April: The Month of Empowerment

April brings a unique opportunity to spotlight two essential pathways to financial stability—financial literacy and fair housing. As we celebrate both Fair Housing Month and Financial Literacy Month, we aim to focus on how understanding your...
Read More

March 28, 2025 | Helpful

Navigating the Mortgage Maze: The Mortgage Process Simplified 

Buying a home is a monumental achievement, often one of the largest financial investments of a lifetime. The journey from dreaming of holding the keys to actually buying the home can feel overwhelming, primarily because of the...
Read More

February 17, 2025 | Helpful

Attainable Homeownership: Building a Brighter Future One Home at a Time

For many, homeownership has long been considered a cornerstone of the American dream—a symbolof stability, security, and independence. Yet, for far too many individuals and families, the path toowning a home can seem daunting, riddled with...
Read More

Relax. We've got this.

Apply Now
Equal Housing Opportunity Logo
  • About Us
  • Partners
  • The Silverton Foundation
  • Find a Loan Originator
  • Loan Programs
  • Blog
  • News
  • Login
  • Contact Us

Vanderbilt Mortgage and Finance Inc., dba Silverton Mortgage
1201 Peachtree St NE, Ste 2050, Atlanta, Georgia 30361|855-815-0291
NMLS 1561|Silverton Mortgage NMLS access page (www.nmlsconsumeraccess.org)| Licensing

© 2025 Silverton Mortgage. All rights reserved.
Lending services provided by Silverton Mortgage.
Equal Housing Opportunity.

All loans are subject to credit approval.

*Silverton Mortgage is authorized to originate FHA, VA, and USDA loans, but it is not an agent of, or affiliated with, the U.S. Government. All trademarks are property of their respective owners.

Vanderbilt Mortgage and Finance, Inc., dba Silverton Mortgage, 1201 Peachtree St NE, Ste 2050, Atlanta, GA 30361, 404-815-0291, NMLS #1561, (http://www.nmlsconsumeraccess.org/), AZ Lic. #BK-0902616, Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act license, Licensed by the N.J. Department of Banking and Insurance, Licensed by PA Dept. of Banking, Rhode Island Licensed Lender. Licensing information: https://silvertonmortgage.com/licensing/ . All information is believed accurate and is subject to change without notice.

CA Resident Privacy Policy | Clayton Homes and Privacy | Do Not Sell or Share My Personal Information

logo Silverton Mortgage Finance your perfect home.
1201 Peachtree St NE, Ste 2050 Atlanta, GA
Phone: 855.815.0291
Equal Housing Opportunity Logo