Low Down Payment Mortgages & Affordable Home Loans

TD Bank has several affordable mortgage programs with low down payments designed to address challenges like having enough money for a down payment and closing costs. Whether you're a first-time home buyer or looking for your next or second home, you'll work closely with a TD Bank Mortgage Loan officer to find the right affordable home loan.

Explore your affordable home loan options

FNMA HomeReady®

Features and benefits:
  • 3% minimum down payment
  • Finance up to 105% of purchase price with a Community Second Mortgage
  • Flexible underwriting with minimum credit score of 620
  • Down payment and closing costs may come from gifts, grants or a Community Second Mortgage
  • Minimum contribution from homebuyer: None for 1-family property
  • Reduced mortgage insurance† for buyers financing over 90% of the purchase price

Requirements and qualifications:

  • Not required to be a first-time buyer
  • Homebuyer education is required by at least one borrower if all borrowers are first-time buyers
  • Total income may not exceed 79.99% of HUD median income limit where property is being purchased

TD Bank Right Step Mortgage

Features and benefits:

  • 3% minimum down payment
  • Finance up to 105% of purchase price with a Community Second Mortgage or down payment assistance loan or grant
  • Flexible underwriting with minimum credit score of 620
  • Down payment and closing costs may come from gifts, grants or a Community Second Mortgage
  • Minimum contribution from homebuyer: $500 for 1-family property; 3% of purchase price for 2-family property; 5% for 3- and 4-family
  • No borrower paid mortgage insurance

Requirements and qualifications:

  • Not required to be a first-time buyer
  • Homebuyer education is required for all borrowers
  • No income limits when purchasing in a low-to-moderate census tract† Income may not exceed 79.99% of HUD median limit in other areas
  • 1- to 4-family primary residences, including co-operative apartments, are eligible

FHA Mortgage

FNMA 97 Mortgage

  • 3% minimum down payment
  • No income limits
  • Must be a first-time homebuyer

Veterans Administration Mortgage

  • No down payment required
  • No mortgage insurance required
  • Available for active duty military, veterans and spouses who meet eligibility requirements

FNMA RefiNow

  • Refinance your FNMA mortgage for up to 97% of your home's value
  • High debt-to-income (DTI) ratios, up to 65%
  • Income limits, 80% AMI or less
  • No cash back at closing

Compare your affordable home loan options

If you want a down payment as low as 3%, our affordable mortgages can help.

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

Compare your affordable home loan options item 1
Mortgage Term
30- or 15-year fixed-rate
Minimum Down Payment

1-unit properties: 3%

2-unit properties: 15%

3-4-unit properties: 75%
Mortgage Insurance (MI)
Affordable and cancelable monthly1
Minimum Contribution From Homebuyer

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

2-4-unit properties: 3% of your own funds2
Homebuyer Education
Required by a HUD-approved state program† for purchases only

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

Compare your affordable home loan options item 2
Mortgage Term
30-year fixed-rate
Minimum Down Payment

1-unit properties: 3%

2-4-unit properties: 10%
Mortgage Insurance (MI)
No borrower paid insurance (lender paid MI)
Minimum Contribution From Homebuyer

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
Homebuyer Education
Required by a HUD-approved state program†

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

Compare your affordable home loan options item 3
Mortgage Term
TD Bank offers 30-year fixed-rate
Minimum Down Payment
1-4-unit properties: 3.5%
Mortgage Insurance (MI)
Yes, Mortgage Insurance Premium (MIP). It can be less than standard PMI.
Minimum Contribution From Homebuyer
3.5%, funds can come from a gift
Homebuyer Education
Not required

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

Compare your affordable home loan options item 4
Mortgage Term
30-year fixed-rate
Minimum Down Payment
1-unit properties: 3%
Mortgage Insurance (MI)
Borrower pays monthly, cancelable1
Minimum Contribution From Homebuyer
3%, can come from gift funds
Homebuyer Education
Not required

Veterans Administration Mortgage:
No down payment, 30-year fixed rate

Compare your affordable home loan options item 5
Mortgage Term
30-year fixed rate
Minimum Down Payment
TD Bank does not require a down payment
Mortgage Insurance (MI)
No, but VA funding fee of 1.4%–3.6% of mortgage loan applied at closing
Minimum Contribution From Homebuyer
None
Homebuyer Education
Not required

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). Your AMI will be adjusted depending on how many people live in the household, including children. While each housing program varies in its specific qualifications, income qualification is generally separated into 3 main tiers:

  • Low Income (80% AMI)
  • Very Low Income (50% AMI)
  • Extremely Low Income (30% AMI)

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:

Explore home-buying tools, education and resources

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.

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