Getting a Home Loan With a Low Down Payment

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We're helping more people buy a home, even without a large down payment.
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Down payments as low as 3%

With Wells Fargo, you may be eligible for a conventional fixed-rate mortgage with a down payment as low as 3%. These home loans may also be layered with gift funds and down payment assistance programs. With a low down payment, mortgage insurance will be required, which increases the cost of the loan and will increase your monthly payment. We’ll explain the options available, so you can choose what works for you.

Dream. Plan. Home.SM mortgage

  • Designed for eligible borrowers at or below 80% of area median income (AMI)
  • Flexible credit standards if you have a limited credit history or a less-than-perfect credit score
  • Available to buy your first or your next home

Additional options for first-time homebuyers

  • At least one borrower must be a first-time homebuyer
  • No area median income requirement

 Here to help 

Reach out to a home mortgage consultant today to discuss loan amount, loan type, property type, income, first-time homebuyer, and homebuyer education requirements to ensure eligibility.

Other low down payment options

FHA Loans

Federal Housing Administration (FHA) loans provide fixed-rate and adjustable-rate financing with down payment options as low as 3.5%.

  • May allow you to use a gift or grant for all or a portion of down payment and closing costs.
  • Require less cash upfront, but you typically have to pay FHA mortgage insurance premiums.
  • Let you qualify with a co-applicant, even if the person doesn't live in the home.
  • You can typically only have one FHA mortgage at a time.

FHA loans have the benefit of a low down payment, but consider all costs involved, including up-front and long-term mortgage insurance and all fees. Ask your home mortgage consultant to help you compare the overall costs of all your home financing options.


Ask a home mortgage consultant to help you compare the monthly and long-term costs of all loans. Mortgage insurance requirements may cause you to pay more over the life of the loan.

VA Loans

Department of Veterans Affairs (VA) loans provide fixed-rate and adjustable-rate financing on primary residences for veterans and other borrowers who meet the eligibility requirements of the VA program. Talk to us for details.

  • Offers low- and no-down-payment options for qualified borrowers, and do not require monthly mortgage insurance.
  • Allows closing costs to come from a gift or grant.
  • Requires a one-time VA funding fee that can be financed into your loan or paid in cash at closing.
  • May provide up to 100% financing for qualified borrowers. Customers must meet all eligibility requirements for the VA program. Please discuss with your Wells Fargo Home Mortgage consultant to review current VA eligibility requirements.

 Military members and Veterans 

Dedicated team and specialized services exclusively for eligible service members. Learn more

Easy to OwnSM Guaranteed Rural Housing Program

The Guaranteed Rural Housing Program, provided by the U.S. Department of Agriculture (USDA), helps low-to-moderate income buyers in rural areas become homeowners.

  • Provides financing of up to 100% with no required down payment.
  • Offers long-term fixed-rate terms, helping to keep payments predictable over the life of the loan.
  • You may be able to finance closing costs, legal fees, and other prepaid fees.
  • You'll pay a one-time guarantee fee and an annual fee to the USDA's Rural Development program.


Your monthly mortgage payment will include the annual fee, and may include the guarantee fee. These fees will increase the cost of the loan and monthly payments.
More homebuying resources

Conventional conforming mortgage 

A mortgage that is not obtained under a government program (FHA or VA) and satisfies the underwriting guidelines and loan limits set by Fannie Mae or Freddie Mac.

Mortgage Insurance Premium

A financial obligation a borrower pays to either the FHA or a private insurer to insure the mortgage lender against loss from a borrower’s default. Upfront and monthly mortgage insurance is required on FHA and monthly mortgage insurance is typically required on conforming loans when the down payment is less than 20%.

Area median income

Area median income (AMI) is the middle income in the range of incomes across a specific population, half the population with income above AMI and the other half having income below that amount. 

FHA mortgage insurance 

Insurance provided by the FHA that protects approved lenders against loss if a borrower defaults on an FHA loan. The cost is typically paid by the borrower as upfront and monthly premiums. Amount and terms of insurance paid vary.

VA funding fee 

You are typically required to pay a one-time funding fee on VA loans. The amount of the funding fee depends on the type of service, prior use of VA eligibility, and type of loan transaction.