Low Down Payment Purchase Options
A low down payment mortgage can help make homeownership more affordable by reducing the amount of cash needed upfront. Whether you’re a first-time homebuyer, repeat homebuyer, or real estate investor, comparing low down payment home loan programs can help you find the financing option that best fits your goals and budget. Explore low down payment mortgage loans in Washington, Oregon, Idaho, California, and Colorado. View Live Rates or Get Pre-Approved Today to get started.
Trusted by Homebuyers Across the Pacific Northwest and Beyond
There are four things that all home buyers and investors should consider when it comes to down payments
- Down payment options
- Cost of lower down payments
- Benefits of lower down payments
- Personal considerations
The information provided below is for the purpose of provoking thought and careful consideration about different financing programs available. It is not meant to steer you toward one particular program. It is merely an exposition of the options to consider when purchasing a home or investment property.
Down Payment Options
Choose the option that fits your budget.
Conventional Loan
Conventional Loan3–20% Down payment
- As little as 3% for qualified buyers
- PMI required below 20%
- Lower down payment = higher mortgage insurance
FHA Loan
FHA Loan3.5% Down payment
- Great for first-time buyers
- More flexible qualification requirements
- Mortgage insurance required
VA Loan
VA Loan0% Down payment
- No down payment required
- No monthly PMI
- Available to eligible veterans and active-duty military
80/20 Financing
80/20 Financing0% Down payment
- First mortgage + second mortgage
- Helps avoid traditional PMI
- Available through select lenders
Cost of a Lower Down Payment
A smaller down payment can help you buy sooner, but it also increases the long-term cost of your loan.
- Higher Interest
Borrowing more increases the total interest you’ll pay.
- Mortgage Insurance
PMI is typically required below 20% down.
- Higher Monthly Payment
A larger loan means a higher monthly payment.
- PMI Can Be Removed
Once you build enough equity, PMI may no longer be required.
Mortgage insurance isn’t always permanent.
Mortgage insurance isn’t always permanent.Once you reach 20% home equity, you may be able to remove PMI through refinancing or by requesting cancellation, depending on your loan type and lender requirements.
Benefits of a Lower Down Payment
A smaller down payment can make homeownership more accessible while giving you greater financial flexibility.
Is a Lower Down Payment Right for You?
A lower down payment isn’t the best choice for everyone, but it can be a smart option if you want to:
- Preserve your savings.
- Buy a home sooner.
- Keep cash available for other investments or future expenses.
- Maintain greater financial flexibility.
Key Takeaway
Choosing a lower down payment is a trade-off. While it may increase your monthly mortgage costs, it can also help you preserve cash, purchase a home sooner, and keep more of your money available for other financial priorities.
Why Buyers Choose a Lower Down Payment
Keep More Cash
Maintain savings for emergencies, renovations, or future expenses.
Investment Flexibility
e available cash for other investment opportunities if it aligns with your goals.
Buy Sooner
Reach homeownership without waiting years to save a large down payment.
Maximize Your Cash
e available cash for other investment opportunities if it aligns with your goals.
Live Mortgage Rates by States
Compare today’s mortgage rates and get personalized rate quotes based on your location, loan type, and home financing goals.
Find Your Comfortable Payment
Choosing a down payment is about more than loan approval—it’s about finding a monthly payment that fits your lifestyle and financial goals.
- Comfortable monthly payment
- Healthy emergency savings
- Affordable long-term budget
- Flexible down payment options
Working With Sammamish Mortgage
At Sammamish Mortgage, our experienced Loan Officers always put clients first, helping you find the right loan for your budget.
We offer competitive rates, fast closings, and a hassle-free mortgage experience, with loan options including FHA and VA loans.
For more information on your home mortgage options, feel free to contact us today. We currently lend in all of Washington, Oregon, Idaho, Colorado and California and have been offering mortgage programs to borrowers since 1992. Our friendly team of experienced mortgage professionals will advise you on which home loan program most effectively meets your needs.
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