You Need Less Saved Than You Think.
FHA, HomeReady and standard conventional loans take a low down payment, and VA and USDA need none for eligible buyers.
Quick answer
Saxton Mortgage does. On at least one conventional program we offer, all of the funds needed to buy a one-unit primary residence can come from a gift, and gifts are not allowed on an investment property. A Community Seconds loan, a subsidized second mortgage typically made by a federal, state, or local government agency, can also sit behind the first mortgage.
Buy sooner, with less up front.
Where the money can come from, and the rules that follow each source.
- Employer help can be a grant or a forgivable second mortgage
- Low down payment options for a primary residence
- Buyers who have not saved a large deposit
- A grant award letter must say no repayment is expected
- Gift funds and eligible assistance programs accepted
- On FHA, a family member can hold a second loan behind yours*
Community Seconds from affordable housing programs
Low down payment options on a primary residence
A seller’s equity can be your gift
Community and affordable second-lien assistance can be layered on
FHA equity gifts come only from family
Assistance cannot be built into your rate
What is the Saxton Low Down Payment Loan?
Agency financing built for buyers who have not saved a large deposit
The Saxton Low Down Payment Loan uses agency programs designed for buyers with limited savings, so a smaller amount up front does not have to mean waiting years to buy.
Fannie Mae accepts grants from federal, state and local government, housing finance agencies, tax-exempt charities, employers, tribes, lenders and the Federal Home Loan Banks, provided the grantor is not the seller or another party to the deal. If the home is one unit and you will occupy it, a grant can pay for everything needed to close.
VA and USDA loans need no down payment for eligible borrowers. Both VA’s funding fee and the USDA upfront fee can go into the loan amount rather than being paid at closing. USDA adds a household income limit and a rural location test that VA does not have.
Why choose the Saxton Low Down Payment Loan?
Built for buyers whose income is ready even if their savings account is not.
Gifts Can Cover Reserves
On a conventional loan, eligible gift funds can satisfy reserve requirements as well as the down payment, though a gift of equity cannot. USDA is stricter and never treats gift money as reserves.
Young Professionals
Strong income, shorter savings history, and a clear path to ownership.
Growing Families
Move into more space without draining everything you have set aside.
Renters Ready To Buy
Turn what you already pay in rent into ownership.
Gift From Family
An eligible donor can contribute toward your funds to close.
Donors Cannot Hand Over Cash
On FHA, a donor cannot give cash on hand. The gift has to be traceable, for example a withdrawal on the donor’s bank statement matched to your deposit, a canceled check or an electronic transfer.
Hear From Homeowners Like You
Frequently Asked Questions
The questions we get asked most about the Low Down Payment Home Loan.
Saxton Mortgage does. On at least one conventional program we offer, all of the funds needed to buy a one-unit primary residence can come from a gift, and gifts are not allowed on an investment property. A Community Seconds loan, a subsidized second mortgage typically made by a federal, state, or local government agency, can also sit behind the first mortgage.
A low down payment mortgage can mean no down payment at all on VA and USDA loans for eligible borrowers, while FHA, HomeReady and standard conventional loans each require a small minimum. We quote the exact dollar amount once we know the price, the loan type and your credit score, since each one changes the math.
For a low down payment loan, FHA’s floor is 500, with maximum FHA financing opening at 580. One VA program we offer also starts at 500. Saxton’s conventional programs, HomeReady included, begin at 620, and one USDA program begins at 580.
Yes, gifts are accepted on FHA loans and on conventional loans for a principal residence or second home, but not on a conventional investment property. FHA needs a gift letter signed and dated by you and the donor that states the amount, the relationship and that no repayment is required. Learn more about investment property.
Saxton’s program summary lists maximum loan amounts of $2,500,000 for VA loans and $2,000,000 for USDA loans. FHA amounts stop at the HUD limit for your county and property size, which we check first.
Yes, Fannie Mae accepts Community Seconds, which are second loans made under an affordable housing program, and FHA permits down payment assistance under its own guidelines. The help cannot be funded through the first mortgage itself, for example through premium pricing on your rate.
No, most low down payment loans are open to repeat buyers; first-time status is required only for Fannie Mae’s lowest conventional tier and Freddie Mac HomeOne, which each need a first-time buyer on the loan. HomeReady, for example, is built around income limits instead of first-time status.
Yes, but not at every financing level: Fannie Mae excludes ARMs from its lowest conventional down payment tier, HomeReady included. HomeReady below that tier still allows ARM plans, and a program we use pairs an FHA ARM with its fixed-rate options.
Find out what you qualify for
Whether you’re buying your first home or moving up with limited savings, there’s likely a Saxton Low Down Payment Loan option that fits. Get a fast, no-obligation pre-qualification today.
Get Pre-Qualified- Consumer Financial Protection Bureau, buying a house: tools and resources for homebuyers
- Consumer Financial Protection Bureau, mortgages
*Loan amounts, rates, terms, and down payment requirements are subject to credit approval, income and asset verification, and program eligibility. Loan limits follow the annual conforming limits set by county. For 2026 the one-unit limit is $832,750, rising to $1,249,125 in higher-cost counties. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.