Explore several types of help
Conventional affordable-lending programs, including Fannie Mae HomeReady, are designed for eligible borrowers who need a lower down payment. FHA, VA and USDA loans may also be worth discussing when their specific requirements fit.
State and local housing agencies may offer down-payment or closing-cost assistance. Assistance can be a grant, a forgivable loan or a repayable loan; ask about repayment, liens, occupancy requirements and available funds.
Check eligibility before comparing
Ask how the program measures household or qualifying income, whether an area-based limit applies, which properties and occupancy types are eligible, and whether homebuyer education is required. First-time-buyer status is not a universal rule.
The lender must verify your income, assets, debts, credit, property and applicable program requirements. An advertised program is not an approval or commitment to lend.
Compare monthly and upfront cost
A lower down payment does not necessarily mean a lower total cost. Compare the rate, APR, monthly payment, mortgage insurance, points, lender fees and credits, plus any assistance repayment terms.
Request written Loan Estimates for comparable scenarios and ask the lender to explain what is included, what may change and how long funds are expected to remain available.
Official sources
Educational information only. Loan availability, eligibility, pricing, fees, approval, and any rate lock must be confirmed by a licensed mortgage professional.