1% Down Conventional Loan (With Lender Assistance)

This program allows you to buy a home with just 1% of the purchase price as your down payment. Then, the lender contributes an additional 2%—up to a maximum of $7,000—toward your down payment, giving you a total of 3% down.

Example: If you’re buying a $250,000 home, you’d only need to bring $2,500 to the table for your down payment. The lender adds $5,000 to help you reach the minimum 3% down payment required for a conventional loan. On higher-priced homes, the lender assistance is capped at $7,000.

Who qualifies?

• Your income must be below the area’s median income limit (we can check this for you)
• You must occupy the home as your primary residence
• This must be your first time buying or you haven’t owned a home in the past 3 years

Why it’s great:

• Lower out-of-pocket cost to buy a home
• Avoid draining your savings
• Conventional loan terms and competitive interest rates

FHA Loan (3.5% Down Payment)

FHA loans are backed by the Federal Housing Administration and are very popular with first-time buyers because they’re flexible on credit and allow for a low down payment.

Example: If you’re buying a $250,000 home, the down payment is just $8,750.

Who qualifies?

• Minimum credit score of 580 (even lower in some cases)
• You must plan to live in the home
• You can use gifted funds or down payment assistance

Why it’s great:

• Easier to qualify if your credit score is lower or you have limited credit history
• Allows for a higher debt-to-income ratio (which means you may qualify for more house)
• Down payment can come from a gift, grant, or eligible program

3% Down Conventional Loan

This program is a great option if your income is too high to qualify for the 1% down program but you still want a low down payment and competitive terms.

Example: On a $250,000 home, your down payment would be $7,500.

Who qualifies?

• No income limits for some versions of this loan
• Requires slightly higher credit scores than FHA
• Must be your primary residence

Why it’s great:

• Lower monthly mortgage insurance compared to FHA
• Strong option for buyers with good credit but limited savings
• May be combined with closing cost assistance

What’s Next?

The best way to find out which program is right for you is to have a quick conversation. We’ll go over your budget, credit, and goals to figure out which path gets you home fastest.

Apply Online or Schedule a Free Consultation

Disclosure: All payment examples are hypothetical and for illustrative purposes only. Actual rates, payments, and costs will vary based on credit profile, loan terms, property type, and market conditions. Not all applicants will qualify. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Equal Housing Lender.