The Lowdown on Low Down Payments

A prevalent myth surrounding home buying is the notion that a 20% down payment is required to secure a property. However, Diamond Residential Mortgage Corporation is here to dispel this misconception by offering an extensive range of low down payment lending options, with down payments beginning as low as 3%. DRMC also actively participates in various government-sponsored payment assistance programs.

Our goal is to ensure that homeownership becomes a reality for a broader spectrum of individuals, regardless of their initial savings. With our diverse selection of low-down payment mortgage solutions, we're committed to guiding you along the path to homeownership, providing financial flexibility and stability that suits your unique needs. Embrace the opportunity to create a comfortable and cherished space for you and your family, thanks to our accommodating and borrower-friendly low-down payment options.

Want to learn more? Let’s take a closer look.

What are Loan Down Payment mortgage loans?

Low down payment options refer to mortgage programs that allow borrowers to purchase a home with a minimal initial cash investment. These options enable more people to access homeownership by reducing the upfront costs typically associated with buying a home.

Check out the general options, pros and cons for Loan Down Payment loans below.

General low down payment options:

  1. FHA loans:
    With down payments as low as 3.5% for qualified borrowers, these government-backed loans are designed to help more people become homeowners.
  2. Conventional loans with low down payment options:
    Some lenders offer conventional loans with down payments as low as 3% for eligible borrowers.
  3. VA loans:
    Eligible veterans and active-duty service members can access VA loans with no down payment requirement.
  4. USDA loans:
    These loans also offer 100% financing for eligible borrowers purchasing a home in designated rural areas.

Pros of Low Down Payment Mortgage Loans:

  • Smaller upfront cost:
    One of the most significant benefits of a low down payment mortgage loan is that it requires a smaller upfront cost compared to other mortgage loans.
  • Opportunity for homeownership:
    Low down payment mortgage loans provide an opportunity for individuals who may not have been able to afford a home to become homeowners.
  • Flexibility:
    Some low-down-payment mortgage loans offer flexibility in terms of income requirements and credit scores, which can make it easier for individuals to qualify for a loan.
  • Diversify investments:
    Individuals may choose to keep their money invested in other areas rather than using it for a large down payment - all while building equity in their home. 


Cons of Low Down Payment Mortgage Loans:

  • Higher monthly payments:
    With a smaller down payment, borrowers may need to make higher monthly payments or carry private mortgage insurance (PMI) to protect the lender's investment.
  • Long-term cost:
    A smaller down payment means that the borrower will need to finance more of the home's purchase price. This can lead to a higher overall cost of the loan over time due to the interest accrued.
  • Equity concerns:
    A lower down payment can also mean a slower build-up of equity in the home, making it more difficult to sell or refinance later on.


Good candidates for Low Down Payment Programs:

  • First-time homebuyers or those with limited savings for a down payment
  • Borrowers with stable income and good credit but lacking substantial cash reserves
  • Veterans, active-duty service members, or eligible surviving spouses who can qualify for VA loans
  • Homebuyers purchasing properties in designated rural areas eligible for USDA loans

Contact one of our knowledgeable loan specialists who can help guide you through our extensive suite of loan products for a mortgage solution tailored to meet your specific needs.