Low Down Payment Mortgages & Affordable Home Loans

TD Bank has several affordable mortgage programs with low down payment options—so whether you're a first-time home buyer or looking for your next home, a TD Bank Mortgage Loan Officer can help you find the right affordable home loan.

Explore our featured options with down payments as low as 3%

Our Affordable Mortgage options are designed to address challenges like having enough money for a down payment and closing costs.

  • TD Right Step Mortgage

  • TD Home Access Mortgage

    • $5,000 Lender Credit available
    • No borrower paid mortgage insurance
    • Available for many property types including condos, co-ops and manufactured housing

  • FNMA HomeReady®

    • Borrower-paid mortgage insurance† (reduced cost vs. other low down payment options)
    • No minimum contribution for single-family properties

Learn more about our featured loan options

  • Additional product features

    • Low down payment—as low as 3%
    • Flexible underwriting with a minimum credit score of 620
    • Down payment and closing costs may come from gifts, grants or a Community Second Mortgage
    • 1- to 4-family primary residences are eligible

  • Qualifications and requirements

    • Homebuyer education may be required for all borrowers
    • Income limits and/or geography requirements may apply
    • Minimum borrower contribution may apply
    • You are not required to be a first-time homebuyer

Discover other affordable home loan options

  • FHA Mortgage

    • 3.5% minimum down payment
    • No income limits
    • Maximum mortgage limit per county. See FHA Mortgage limits†
    • Mortgage Insurance Premium (MIP) applies; it can be less than standard Mortgage Insurance

  • VA Mortgage

    • No down payment required
    • No income limits
    • Available for active duty military, veterans and spouses who meet eligibility requirements
    • In lieu of Mortgage Insurance, funding fee required at closing

  • FNMA 97 Mortgage

    • 3% minimum down payment
    • No income limits
    • Must be a first-time homebuyer
    • Borrower-paid Mortgage Insurance may be required

  • FNMA RefiNow

    • Refinance your FNMA mortgage for up to 97% of your home's value
    • Income limits apply
    • High debt-to-income (DTI) ratios, up to 65%
    • No cash back at closing
    • Borrower-paid Mortgage Insurance may be required

Compare your affordable home loan options

If you're purchasing a home and looking for a down payment as low as 3%, our affordable mortgages can help.

Mortgage Term

Minimum Down Payment

Mortgage Insurance (MI)

Minimum Contribution From Homebuyer

Homebuyer Education

TD Right Step Mortgage:
3% down, 30-year fixed rate

30-year fixed-rate

1-unit properties: 3%

2-4-unit properties: 10%

No borrower paid insurance (lender paid MI)

1-unit properties: $500 of your own funds

2-unit properties: 3% of your own funds

3-4-unit properties: 5% of your own funds

Required by a HUD-approved state program†

TD Home Access Mortgage:
3% down, 30-year fixed rate

30-year fixed-rate

1-unit properties: 3%

2-unit properties: 5%

3-4-unit properties: 10%

No borrower paid insurance (lender paid MI)

1-unit properties: $500 of your own funds

2-unit properties: 3% of your own funds

3-4-unit properties: 5% of your own funds

Required by a HUD-approved state program†

HomeReady®:
3% down, 30- or 15-year fixed rate

30- or 15-year fixed-rate

1-unit properties: 3%

2-unit properties: 15%

3-4-unit properties: 25%

Affordable and cancelable monthly1

1-unit properties: 3%, funds can come from a gift

2-4-unit properties: 3% of your own funds2

Required by a HUD-approved state program† for purchases only

FHA Mortgage:
3.5% down, 30-year fixed rate

TD Bank offers 30-year fixed-rate

1-4-unit properties: 3.5%

Mortgage Insurance Premium (MIP) applies; it can be less than standard MI

3.5%, funds can come from a gift

Not required

VA Mortgage:
No down payment, 30-year fixed rate

30-year fixed rate

TD Bank does not require a down payment

In lieu of MI, funding fee required at closing

None

Not required

FNMA 97 Mortgage:
First-time homebuyers only, 3% down, 30-year fixed rate

30-year fixed-rate

1-unit properties: 3%

Borrower pays monthly, cancelable1

3%, can come from gift funds

Not required

Note: Down payment requirements may vary for additional property types such as condos, co-ops and manufactured housing.

How to qualify for affordable home loan programs

  • Income limits for low down payment mortgages

    The income limit for an affordable housing program is the maximum amount of income a household can earn to qualify for an affordable mortgage product. The specific figure is based on the city or county's Area Median Income (AMI). Each housing program varies in its specific income qualifications.

  • Community Second Mortgage and down payment programs

    A Community Second Mortgage is a grant or loan that allows approved third parties to provide up to 105% of the home's value to cover the down payment and closing costs. Depending on the exact down payment assistance program, a Community Second Mortgage offers a variety of repayment options:

    • A 0% interest rate on the second mortgage
    • Repayment of the loan only (not interest) if/when the home is sold
    • Fixed installment payments on a set schedule
    • Debt forgiveness (a portion of the loan can be forgiven if the home remains occupied by the original owner for a determined number of years)

  • Homebuyer education for low down payment mortgages

    Some low down payment and affordable mortgage loans require HUD-approved education classes or counseling for prospective homebuyers.† These private or group sessions provide valuable information and tools with topics like:

Begin your mortgage journey now

Home loan repayment help and options

If you are struggling to make payments on your mortgage due to a job loss or other financial distress, TD Bank is here to help you prevent a foreclosure and find a solution which works for you and your situation.

Find out more

Loans subject to credit approval. Equal Housing Lender | Member FDIC

1You may request your lender/servicer cancel PMI when you have reached the date when the principal balance of the mortgage is scheduled to fall to 80% of the original value of your home or you have paid down the mortgage balance to 80% of the home's original appraised value and you are up to date with your monthly payments. Your lender/servicer is required to automatically terminate PMI when your loan is scheduled to reach 78% of the original value of your home and you are up to date with your mortgage payments.

Final loan approval for the Right Step product requires satisfaction of Low-to-Moderate income requirements or the Subject property must be located in a Low-to-Moderate income census tract.

Final loan approval for the TD Home Access Mortgage product requires satisfaction of geography and income requirements.

Final loan approval for the HomeReady product requires satisfaction of Low-to-Moderate income requirements.

HomeReady is a trademark of Fannie Mae.

2No minimum contribution required if you're putting down at least 20% of the sales price.

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