Low Down Payment Mortgages & Affordable Home Loans
Explore our featured options with down payments as low as 3%
TD Right Step Mortgage
- No income limits for properties located in low-to-moderate income census tracts†
- No borrower paid mortgage insurance
- Available for many property types including condos, co-ops and manufactured housing
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
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:
- Costs and responsibilities of owning a home
- How to be financially prepared to buy a home
- Understanding credit
- How to create and keep a budget
- Assessing and comparing mortgage terms
- Applying for a mortgage
- Understanding the mortgage loan process