DOWNPAYMENT RESOURCEs
You don't need 20% down.
Many mortgages only require 3% to 5%, and there are loans and grants to help.
Explore local down payment assistance and talk to your lender and real estate agent.
downpayment help
For homebuyers
Don’t let a lack of down payment keep you from your dream of homeownership. Down payment assistance is available nationwide for income- and credit-qualified buyers ready for homeownership.
Resources for Homebuyers
The homebuying process can feel overwhelming. From homebuyer counseling to finding a mortgage, education is key to take the first step.
DID YOU KNOW?
Mortgage Ready
36%
Why rent when you can buy?
A recent study by Freddie Mac found that 36% (approx. 41 million) of their population data set was ready to buy a home, based on credit and current debt.
Average Homebuyer Age
33
The National Association of Realtors (NAR) shows the average age for first-time homebuyers is 33 this year, but why wait? You don’t need 20% down, and down payment assistance may be available.
Incentive Programs
16%
Are you a community hero? Almost 16% of all programs provide special incentives for veterans, active military, doctors, firefighters, educators, and healthcare workers.
breaking down
Real estate terms
Loan Calculator
Loan Amount
$100,000
$5,000,000
$500,000
Interest Rate
5 %
1 %
15 %
Loan Period
30 Years
5 Years
40 Years
Monthly Payment
$2,684
This is your monthly Principal & Interest payment. Please note that this des not include taxes, insurance and any additional esquire costs.
Total Interest Paid
$466,279
This is the total amount of interest you'll pay over the loan term.
Total Amount Paid
$2,684
This is the total amount you'll pay including both the loan amount and interest.
EQUITY FOR ALL
NACA is an organization that fights to close the racial wealth disparity gap through character-based lending. They take their members’ circumstances into account to help make affordable homeownership a reality.
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homeowner
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NACA in the fight for economic justice
Find the Right Mortgage for You.
Navigating the world of mortgages can feel overwhelming, but understanding your options is the first step toward finding the right loan for your needs. Here’s a breakdown of popular mortgage types to help you make an informed decision.
Conventional Loans
Conventional loans are mortgages offered through private lenders without government backing. These loans typically meet the standards set by government-sponsored entities like Fannie Mae and Freddie Mac.
Down Payment:
While some options allow for as little as 3% down, a 20% down payment is generally required to bypass private mortgage insurance (PMI).
PMI Requirement:
If your down payment is under 20%, PMI will likely be necessary to protect the lender in case of default.
FHA Loans
FHA loans, insured by the Federal Housing Administration, are designed to make homeownership accessible for buyers who may not qualify for conventional loans due to lower credit scores or smaller savings.
Lower Down Payment:
Buyers can put down as little as 3.5% of the home’s price.
Flexible Credit Requirements:
Borrowers with credit scores as low as 580 may qualify with the minimum down payment. For lower scores, a larger down payment is required.
vA Loans
VA loans are designed to support military service members, veterans, and eligible family members. These loans are backed by the Department of Veterans Affairs and provide significant benefits.
No Down Payment:
Eligible borrowers can buy a home without any upfront down payment.
No PMI Costs:
Unlike other loans, VA loans don’t require private mortgage insurance, even with zero down.
Investor Loans
If you’re buying property to rent, flip, or hold as part of a portfolio, an investor loan is tailored for your needs. These loans cater specifically to real estate investment purposes.
Higher Down Payments:
Investors are typically required to make a larger initial payment—often 20-30% or more, depending on the lender.
Increased Interest Rates:
Lenders generally charge higher rates due to the additional risks associated with investment properties.
Jumbo Loans
For those purchasing higher-priced homes, jumbo loans are designed to cover amounts that exceed conforming loan limits set by the Federal Housing Finance Agency (FHFA).
Loan Limits:
In most areas, conforming loan limits are $726,200 for 2024, with higher thresholds in specific high-cost regions. Loans exceeding these limits fall into the jumbo category.
Stricter Credit Standards:
Borrowers typically need strong credit, often with a minimum score of 700 or more.
Bank Statement Loans
Bank statement loans cater to individuals with nontraditional income, such as self-employed professionals or freelancers. Instead of relying on standard income documentation, these loans assess cash flow based on bank statements.
Alternative Income Proof:
Lenders analyze 12-24 months of personal or business bank statements to gauge income and repayment ability.
Ideal for Self-Employed Borrowers:
A great fit for entrepreneurs, contractors, and gig workers whose income may not fit conventional documentation.