Saving 20% for a down payment may make the prospect of homeownership seem out of reach for many potential buyers. With the average U.S. home value of $184,600, that’s nearly $37,000!

Good news: there are options available with far less stringent requirements than the traditional down payment. Here are five alternatives for qualified homebuyers that may help you achieve homeownership sooner than you think.

  1. HomeReady: Fannie Mae’s HomeReady is a great option for first-time homebuyers and low-to-moderate income borrowers. It gives you access to 97% LTV financing (the calculation of the loan against the value of the property) and 105 percent CLTV funding through Community Seconds®. The program also includes increased income considerations for non-borrowing household members and allows for flexible use of funds. Some income limitations may apply.

  2. Home Possible: Freddie Mac’s Home Possible program offers similar benefits to HomeReady, including access to 95 percent LTV financing and flexible funding. Income limitations apply with this program, as well.

  3. FHA 203B Program: Federal Housing Administration (FHA) 203B is another good option for first-time homebuyers and those with less-than-perfect credit because of its minimal down payment of approximately 3%.

  4.  USDA Rural Development Guaranteed Housing Loan Program: The U.S. Department of Agriculture’s Rural Development Guaranteed Housing Loan program is a lesser-known option, offering 100% financing with reduced mortgage insurance premiums and below-market mortgage rates. To qualify, you must be located in eligible rural and suburban areas.

  5. VA Loan Program: Are you a veteran? If so, you may be eligible for the VA loan program through the U.S. Department of Veterans Affairs, which covers up to 100% of mortgage financing.


Buying a home, and especially the process of obtaining a mortgage, may seem intimidating or even unobtainable. But it isn’t. There are our many options available and the team at Ditech can help you find the right program to fit your needs. Contact us today for more information. We’ve got the loan to bring you home!

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