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Low down payment mortgage options

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What are some mortgage options with low down payments?

We're committed to helping homebuyers thrive through the power of homeownership. The Bank of America Community Homeownership Commitment™ provides solutions for modest-income and first-time homebuyers, including affordable mortgages, grant programs, resources and expertise.

These loans can help make homebuying more affordable:

Affordable Loan Solution® mortgage
This home loan offers a 3% down payment with no mortgage insurance required.

Freddie Mac Home Possible® mortgage
This mortgage offers a 3% down payment and a competitive rate.

 

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Key requirements for both mortgages:

  • Homebuyer education may be required for first-time homebuyers from a HUD-approved counseling agency, including Connect to Own® providers, or by completing Freddie Mac's CreditSmart® program.
  • Income and loan amount limits apply and vary by location.
  • Up to 97% loan-to-value/105% combined loan-to-value. (CLTV > 95% requires secondary financing to be an affordable down payment assistance program.)  layer
  • Loan amounts up to $548,250 with 3% down payment and up to $822,375 with 5% down payment in high-cost areas.  layer

In addition, with the Home Possible mortgage:

  • Two months principal, interest, taxes, insurance and assessments reserves may be required.
  • Mortgage insurance is required; however, it's at a reduced cost compared to most conventional loans.

More homebuying help


Visit the Bank of America Down Payment Center to search for programs you may be eligible for, including the America's Home Grant and Down Payment Grant programs (available in select markets) plus other programs offered by state and local agencies, nonprofits and employers.

What are LTV and CLTV?

Loan-to-value ratio (LTV) is the total amount of your mortgage compared to the home's appraised value, expressed as a percentage.

The combined loan-to-value (CLTV) ratio is the ratio of all secured loans on a property to the value of a property.

What is a high-cost area?

High cost housing markets are designated by government sponsored enterprises, Fannie Mae and Freddie Mac, and represent markets where the average cost of housing is higher than the general market.

Other types of mortgages

Fixed-rate mortgages

  • Your interest rate remains the same for the entire loan term

  • Your monthly payment of principal and interest does not change during the loan term

Adjustable-rate mortgages (ARMs)

  • Interest rate may change periodically during the loan term

  • Your monthly payment may increase or decrease based on interest rate changes

Jumbo loans

  • For borrowers needing higher loan amounts

  • Available for primary residences, second or vacation homes and investment properties

FHA & VA loans

  • Government loans from the Federal Housing Administration and the U.S. Department of Veterans Affairs

  • Low down payment options with flexible credit and income guidelines

Resources and tools

Mortgage calculator

Closing costs calculator

Buying a home: A 5-step guide

First-time homebuyer information

Real Estate Center

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Low down payment mortgage basics

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