Low Down Payment Mortgage Options in Maryland, DC and Virginia
Available to qualified borrowers; program requirements vary.
In many cases, you may not need a 20% down payment to buy a home. For example, qualified buyers in Maryland, Washington, DC and Virginia may have access to conventional, FHA, VA, USDA and state or local homebuyer programs that reduce the amount needed upfront.
However, the right option depends on your income, credit profile, property type, military eligibility, location, available assets and long-term goals. A lower down payment can help you buy sooner. Still, the lowest down payment does not automatically provide the lowest-cost loan.
Conventional Loans With As Little As 3% Down
Fannie Mae HomeReady® and Freddie Mac Home Possible® are conventional programs that help expand access to homeownership. Eligible borrowers may qualify with as little as 3% down. In addition, some buyers may qualify for reduced mortgage-insurance pricing.
- Down payment options as low as 3% for eligible borrowers
- In addition, program rules may allow gift funds and other eligible sources
- Borrowers may cancel mortgage insurance after meeting the applicable requirements
- Income limits and additional program requirements may apply
- Some situations do not require first-time homebuyer status
FHA Loans — As Little As 3.5% Down
Similarly, FHA financing remains a popular option for buyers seeking a lower down payment and flexible qualifying guidelines. Qualified borrowers may purchase a qualifying one- to four-unit primary residence with as little as 3.5% down.
- For example, FHA requirements may allow eligible gift funds
- FHA mortgage insurance applies
- Loan limits vary by county and change periodically
- Can be useful for buyers with limited savings or less-than-perfect credit
VA Loans — Possible 0% Down Payment
Eligible veterans, active-duty service members and certain surviving spouses may qualify for VA financing with no required down payment when the property value qualifies and borrowers satisfy all other eligibility requirements.
- Potential for 100% financing
- No monthly private mortgage insurance
- Competitive loan terms for qualified borrowers
- VA eligibility, entitlement and property requirements apply
USDA Loans — Possible 100% Financing
Additionally, USDA financing may offer no-down-payment options for qualified buyers purchasing eligible primary residences in designated rural and suburban areas. Because household income limits and location requirements apply, we should check each address and household individually.
Maryland Down Payment Assistance
The Maryland Mortgage Program offers eligible buyers 30-year fixed-rate mortgages and a range of down payment and closing-cost assistance options. Products include First Time Advantage, Flex and certain specialty programs. For instance, programs may provide assistance as a grant or deferred loan. However, availability and requirements can change.
Learn more about Maryland down payment assistance programs.
Washington, DC Homebuyer Programs
Eligible buyers purchasing in the District may have access to programs such as DC Open Doors, HomeAdvantage DC, HPAP and EAHP. However, each program has different income, credit, repayment, residency and funding requirements. Therefore, availability varies by buyer.
Explore Washington, DC down payment assistance programs.
Virginia Housing Loans and Assistance
Virginia Housing offers eligible homebuyers mortgage and assistance options, including down payment and closing-cost resources. Program eligibility may depend on first-time buyer status, household income, sales price, loan type, location and completion of homebuyer education.
Learn more about Virginia Housing loans and down payment assistance.
Low Down Payment Is Not the Same as Assistance
A low down payment mortgage reduces the amount you are required to contribute toward the purchase price. A down payment assistance program may provide eligible buyers with additional funds toward the down payment and/or closing costs. In some cases, the two can be combined.
Which Option Is Best for You?
Interest rate, mortgage insurance, assistance repayment terms, monthly payment, closing costs and future plans should all be evaluated together. As an experienced local lender serving Maryland, Washington, DC and Virginia, the Chris Jordan Mortgage Team can compare the available options and explain the tradeoffs clearly.
Ready to discuss your options? Call (240) 670-5090, email us directly or use the Pre-Qualify Now button above.
Loan programs, funding, guidelines and eligibility requirements can change. Not all borrowers or properties will qualify.
