Explore Affordable Home Loans with Just 3% Down
A low down payment mortgage makes homeownership achievable without breaking the bank. Our mortgage brokers specialize in three affordable loan programs—Freddie Mac Home Possible, Freddie Mac HomeOne, and Fannie Mae HomeReady—crafted for first-time buyers and low-to-moderate-income families. In 2025, these programs offer just 3% down and flexible terms to fit your financial needs.
- Low Down Payment: Only 3% down for all three programs, saving you thousands upfront.
- Flexible Funding: Use gifts, grants, or assistance programs for down payments and closing costs.
- Affordable Terms: Cancelable mortgage insurance and competitive rates reduce long-term costs.
Example: For a $300,000 home, you’d need just $9,000 down, compared to $60,000 for a standard 20% down payment.
Freddie Mac Home Possible: Low-Income Homeownership
The Freddie Mac Home Possible loan program helps low-to-moderate-income borrowers buy a home with a low down payment mortgage. It’s ideal for those earning 80% or less of their area’s median income (AMI), offering flexible credit and income options.
Key Features
- 3% Down: Finance up to 97% of the home’s value.
- Income Limits: Must earn 80% or less of AMI (no limits in underserved areas).
- Credit Flexibility: Minimum credit score of 660; alternative credit data accepted with 5% down.
- Rental Income: Use income from a roommate or rental unit to qualify.
Who It’s For: First-time or repeat buyers with limited income, especially in high-cost or underserved areas.
Freddie Mac HomeOne: First-Time Buyer Freedom
The Freddie Mac HomeOne program is designed for first-time homebuyers who want a low down payment mortgage without income restrictions. It’s perfect for those with higher incomes but limited savings.
Key Features
- 3% Down: No income or geographic limits, ideal for any location.
- First-Time Buyer Focus: At least one borrower must be a first-time buyer.
- Credit Requirements: Minimum credit score typically 660, depending on lender.
- Education Requirement: First-time buyers complete a free homebuyer course.
Who It’s For: First-time buyers with stable income but minimal savings, regardless of area median income.
Fannie Mae HomeReady: Flexible Financing for All
The Fannie Mae HomeReady Loan program supports low-to-moderate-income borrowers with a low down payment mortgage and unique income flexibility. It’s a great alternative to FHA loans, with lower insurance costs.
Key Features
- 3% Down: Finance up to 97% of the home’s value.
- Income Limits: Must earn 80% or less of AMI (no limits in some areas).
- Credit Flexibility: Minimum credit score of 620; considers rent payment history.
- Non-Borrower Income: Include income from roommates or non-occupant co-borrowers.
Who It’s For: Buyers with lower credit scores or diverse income sources, including first-time and repeat buyers.
Home Possible vs. HomeOne vs. HomeReady: Which Is Right for You?
Choosing the best low down payment mortgage depends on your income, credit, and homebuying goals. Here’s a quick comparison:
| Feature | Home Possible | HomeOne | HomeReady |
|---|---|---|---|
| Down Payment | 3% | 3% | 3% |
| Credit Score | 660 (or 5% down) | 660 | 620 |
| Income Limits | 80% AMI | None | 80% AMI |
| First-Time Buyer | Not required | Required | Not required |
| Unique Feature | Rental income | No income limits | Non-borrower income |
Tip: If your credit score is below 660, HomeReady may be your best bet. If you earn above the area median income, HomeOne is ideal.
Benefits of These Low Down Payment Programs
These programs make homeownership achievable with features tailored to today’s buyers:
- Affordable Entry: 3% down payment means less savings needed upfront.
- Flexible Funding: Use gifts, grants, or down payment assistance programs.
- Lower Insurance Costs: Cancelable mortgage insurance once you reach 20% equity.
- Wide Property Options: Buy single-family homes, condos, or townhomes.
Real-Life Savings: A $250,000 home with a HomeReady loan saves ~$150/month in mortgage insurance compared to an FHA loan with lifelong premiums.
How to Apply for a Low Down Payment Mortgage
Ready to explore Home Possible, HomeOne, or HomeReady? Our mortgage brokers make the process simple:
- Check Eligibility: Review your income, credit, and homebuyer status with us.
- Gather Documents: Provide pay stubs, tax returns, and bank statements.
- Complete Education: Take a free or low-cost homebuyer course if required.
- Get Preapproved: Know your budget and strengthen your offer.
- Find a Home: Choose a property that meets program guidelines.
- Apply: Submit your application with our expert support.
Get preapproved today and buy your home with just 3% down! Contact our team now.
Frequently Asked Questions About Low Down Payment Loans
Do I need to be a first-time buyer for these programs?
HomeOne requires at least one first-time buyer, but Home Possible and HomeReady are open to repeat buyers.
Can I use gift funds for the down payment?
Yes, all three programs allow gifts, grants, or assistance programs to cover the 3% down payment.
What’s the area median income (AMI) limit?
Home Possible and HomeReady require income at or below 80% of AMI, except in underserved areas. HomeOne has no income limits.