I am looking for a mortgage that allows for a low down payment and does not require PMI.

If you want a low down payment mortgage with no PMI, you’ll usually need to look beyond a standard conventional loan. Here are the main options to consider:

A few things to watch:

• A “no PMI” loan is not always the cheapest loan. The lender may offset the cost through a higher interest rate, fees, or a second mortgage.
• A piggyback loan can be attractive if you have strong credit and income but don’t want to put 20% down. However, you’ll have two loans to manage, and the second loan may have a variable or higher rate.
• FHA loans have a low down payment requirement, but they generally include mortgage insurance rather than eliminating it.

To narrow this down, I’d need a few details:

1. Are you a veteran or active-duty military (VA eligibility)?
2. Is this for a primary residence, investment property, or second home?
3. About how much can you put down (e.g., 0%, 3%, 5%, 10%)?
4. What state are you buying in, and roughly what price range is the home?
5. Approximate credit score range (e.g., 620–680, 680–740, 740+)?

Finding a low down payment mortgage that completely avoids private mortgage insurance (PMI) is entirely possible, though these programs usually require meeting specific geographic, military, income, or lender-specific criteria.

The primary options that feature low or zero down payments without monthly PMI include:

• USDA Loans: Backed by the U.S. Department of Agriculture, these offer 0% down and no monthly PMI (though they do have an upfront and annual guarantee fee, which functions differently than traditional PMI). They are strictly targeted at homes located in designated rural or suburban areas, and your household income must fall below local limits. You can verify property eligibility via the USDA Rural Development Property Eligibility tool.
• VA Loans: Available to active-duty military, veterans, and eligible surviving spouses through the U.S. Department of Veterans Affairs , VA loans require 0% down and never charge PMI . They do require a one-time VA funding fee (which can be rolled into the loan amount), but there is no ongoing monthly mortgage insurance.
• Special Bank & Credit Union Community Programs: Many major financial institutions and credit unions offer proprietary affordable lending programs designed for low-to-moderate-income buyers or specific neighborhoods. For example, some banks feature special programs requiring as little as 3% down (or even zero down via specialized grants/products) that waive PMI entirely.
• NACA (Neighborhood Assistance Corporation of America): NACA offers a program featuring zero down payment, no PMI, no closing costs, and a below-market fixed interest rate . The catch is that it requires intensive counseling, adherence to their strict guidelines, and processing time. You can explore details on the NACA Official Website.

Note on FHA Loans: FHA loans allow a low down payment (3.5%), but they do require mortgage insurance (MIP) for the life of the loan in most cases, so they won’t match your goal of avoiding insurance premiums.

To help narrow down which of these options you might qualify for, let me know:

• Are you or your spouse eligible for military/VA benefits?
• Are you looking at homes in rural/suburban areas or major cities?
• What is your estimated credit score range?

If you want a low down payment mortgage with no PMI (private mortgage insurance), your options are more limited, but there are several possibilities:

A few details:

• VA loans are usually the strongest match if you qualify: they can require no down payment and do not require monthly PMI. They may include a one-time VA funding fee for some borrowers.
• USDA loans can offer 0% down for eligible properties and borrowers, but they have their own mortgage-related fees, so they are not a true “no mortgage insurance cost” option.
• Some conventional lenders offer lender-paid PMI, where you avoid a separate PMI bill, but the tradeoff is often a higher interest rate.

To narrow this down, the best fit depends on:

1. Are you a veteran or active-duty military member?
2. What state are you buying in?
3. Roughly what down payment can you make (0%, 3%, 5%, 10%)?
4. Your approximate credit score range?
5. Is this a first home or a move-up purchase?

Finding a low-down-payment mortgage that completely skips Private Mortgage Insurance (PMI) is entirely possible, though these programs usually require meeting specific geographic, military, income, or occupational guidelines.

The primary mortgage options that feature low (or zero) down payments without requiring traditional PMI include:

• VA Loans : Backed by the Department of Veterans Affairs, these loans require $0 down and charge no monthly PMI (though a one-time VA funding fee applies unless waived due to a service-connected disability). They are available to eligible active-duty military, veterans, and surviving spouses through lenders like Navy Federal Credit Union.
• USDA Loans : Backed by the U.S. Department of Agriculture, USDA loans offer $0 down financing for properties located in designated rural and suburban areas. They do not have standard monthly PMI, though they do charge an upfront and annual guarantee fee that functions similarly at a lower cost.
• Special Lender Portfolio / Community Programs : Individual banks and credit unions sometimes design proprietary low-down-payment loans (often requiring 3% down) that carry no PMI. For example, the PNC Community Loan requires a low down payment with no monthly PMI, and some credit unions offer 100% financing portfolio products.
• Physician or Professional Loans : Many major banks offer specialized zero- or low-down-payment mortgages for targeted professions (like doctors, dentists, or sometimes lawyers and CPAs) that explicitly waive PMI because of high future earning potential.
• Piggyback Loans (80-10-10) : While not a single loan program, this is a structuring strategy where you put 10% down, take a first mortgage for 80% of the home's value, and a second loan for the remaining 10%. Because the primary loan is exactly at 80% LTV (Loan-to-Value), it avoids PMI, though the interest rate on the second loan is typically higher.

To help narrow down which of these options you might qualify for, please share:

• Are you or your spouse active military or a veteran?
• Are you open to buying a home in a rural or suburban area?
• What is your target credit score range and approximate household income?

Finding a low down payment mortgage that completely avoids Private Mortgage Insurance (PMI) is possible, but it usually requires looking into specific government-backed options, specialty bank programs, or alternative financing structures . Standard conventional loans with 3% or 5% down will always require PMI, but you can bypass it through the following avenues:

• VA Loans: If you are an eligible active-duty service member, veteran, or surviving spouse, the VA Loan Program offered through lenders like Navy Federal Credit Union allows for 0% down and no monthly mortgage insurance at all (though a one-time VA funding fee applies).
• Special Purpose Credit Programs (SPCPs) & Portfolio Loans: Some major national and regional banks, as well as credit unions, offer proprietary low down payment loans (such as 3% down) with no PMI. Examples include specific community lending programs by banks like PNC or specialized zero-down/no-PMI choices via credit unions (like NASA Federal Credit Union or local credit unions). They often target specific census tracts, low-to-moderate-income buyers, or first-time homeowners.
• Lender-Paid Mortgage Insurance (LPMI): With LPMI, the lender agrees to cover the mortgage insurance. In exchange, you accept a slightly higher interest rate on your primary loan. It keeps you from paying a separate monthly PMI fee, though you’ll want to calculate whether the higher rate costs more over time than standard PMI would.
• Piggyback Loans (80-10-10): This structure involves taking out a conventional 80% first mortgage, a 10% second mortgage (or home equity loan) to cover half of your intended down payment, and paying the remaining 10% in cash. Because the primary loan is at 80% LTV (Loan-to-Value), you avoid PMI, though managing two separate loans requires careful closing cost and interest rate evaluation.
• USDA Loans: While USDA loans offer 0% down for properties in designated rural and suburban areas, note that they technically utilize an upfront and annual guarantee fee rather than traditional PMI. However, the monthly fee equivalent is often lower than conventional PMI.

To help narrow down which of these options you might qualify for, tell me:

• Are you or a spouse a veteran or active military member?
• Is the property you are looking at located in a rural or suburban area?
• What is your estimated credit score and is this your first home purchase?

If you want a low down payment mortgage with no PMI (private mortgage insurance), your options are more limited, but there are several good paths depending on your eligibility.

1. VA loan — often the best fit if you qualify

• Down payment: 0% possible
• PMI: No monthly PMI required
• Who qualifies: Eligible veterans, active-duty service members, some National Guard/Reserve members, and certain surviving spouses
• Trade-off: Usually has a one-time VA funding fee (some borrowers are exempt)

2. USDA loan — 0% down, but location/income restrictions

• Down payment: 0%
• PMI: No PMI (but USDA loans have their own guarantee fees and annual fees)
• Who qualifies: Buyers purchasing in eligible rural/suburban areas who meet income limits

3. Conventional loan with a “piggyback” second mortgage (80/10/10 or similar)

• Down payment: Commonly around 10%
• PMI: Avoided because the first mortgage stays at 80% loan-to-value
• Trade-off: You have two loans and must qualify for both; the second loan may have a higher rate.

4. Low-down-payment conventional programs (usually with PMI)

Some conventional programs allow around 3% down, but they typically require PMI until enough equity is built. www.finder.com If your priority is no PMI, these may not meet your goal unless paired with a lender-specific option.

5. Physician or specialty professional loans (if applicable)

Some lenders offer low- or zero-down mortgages for certain professionals (such as physicians), often without PMI. Eligibility depends on profession, income, and lender.

A few questions would help narrow this down:

1. Are you a veteran or active-duty military (VA eligibility)?
2. What state are you buying in (and is it a primary residence)?
3. About how much can you put down (for example: 0%, 3%, 5%, 10%)?
4. Approximate credit score range (e.g., 620–680, 680–740, 740+)?

Since you appear to be in Texas, I can also help look at Texas-specific lenders and programs if that’s where you plan to buy.

Yes. The combination you want—low down payment + no monthly PMI—is available, but the best route depends heavily on your eligibility.

Best options

If you're VA-eligible, I'd look there first. VA-backed purchase loans can require 0% down and no PMI or MIP. There may instead be a one-time VA funding fee, although some borrowers are exempt.

If you're not VA-eligible, a piggyback mortgage is worth investigating. For example, an 80/10/10 structure could mean 10% down, an 80% first mortgage, and a 10% second mortgage, avoiding PMI on the first mortgage. The CFPB cautions that the second mortgage can carry a higher interest rate, so you need to compare the total cost against simply paying PMI.

USDA can also provide 100% financing with no down payment for qualifying borrowers and properties, but it isn't truly "no mortgage insurance cost": USDA loans have their own guarantee fees.

One important distinction: "no PMI" doesn't necessarily mean "no mortgage insurance cost." Some lenders offer lender-paid PMI, where the cost is generally reflected elsewhere—often through a higher interest rate. And conventional 3%-down programs such as HomeReady generally still have mortgage insurance, though it can be canceled later.

If you tell me (1) your approximate credit score, (2) home price you're targeting, (3) how much you have available for the down payment, and (4) whether you're a veteran/active-duty service member, I can narrow this down to the most realistic mortgage structures for you.

Finding a low down payment mortgage that completely avoids Private Mortgage Insurance (PMI) is possible, though these programs usually trade PMI for a slightly higher interest rate , specific geographic/occupational requirements, or a creative loan structure.

The primary mortgage options that allow a low or zero down payment without traditional monthly PMI include:

• VA Loans : Available to eligible active-duty military members, veterans, and surviving spouses. They offer $0 down payment and no monthly PMI , though a one-time VA funding fee applies (which can be rolled into the loan amount).
• Credit Union Special Programs : Many prominent credit unions (such as Navy Federal Credit Union with their Homebuyers Choice program) offer 0% to 5% down options with no PMI . Local or regional credit unions often feature portfolio products like custom 5% or 10% down "No PMI" mortgages.
• Lender-Paid or Special Portfolio Loans : Certain major banks and lenders offer specialized first-time homebuyer or community lending products (like PNC’s Community Loan or Citi’s HomeRun Mortgage) that require low down payments (around 3%) without mortgage insurance, often balancing it with a slightly higher interest rate.
• Piggyback Loans (80/10/10) : This involves taking out a primary conventional mortgage for 80% of the home value, a secondary loan or HELOC for 10% , and making a 10% down payment . Because the first loan hits the 80% LTV threshold, you avoid PMI, though you manage two separate loan payments.
• NACA (Neighborhood Assistance Corporation of America) Program : Offers a famous cooperative program via NACA providing $0 down, no PMI, and no closing costs , though it requires strict housing counseling and an income-based/primary residence approval process.

(Note: USDA loans offer 0% down in designated rural and suburban areas, but they do charge an alternative guarantee/annual fee system rather than traditional PMI.)

If you'd like to narrow down which option fits best, let me know:

• Are you or a spouse eligible for military (VA) benefits?
• Are you looking at properties in rural/suburban areas or major cities?
• What down payment percentage (e.g., 0%, 3%, 5%, 10%) do you ideally want to put down?

Finding a low-down-payment mortgage that completely skips Private Mortgage Insurance (PMI) is entirely possible, though these specialty programs usually require meeting specific eligibility criteria.

The primary options that feature a low or zero down payment alongside no monthly PMI include:

• VA Loans : Backed by the Department of Veterans Affairs, these loans require $0 down and carry no monthly PMI (though they do have a one-time, financed VA funding fee). Available to eligible active-duty military, veterans, and surviving spouses.
• USDA Loans : Backed by the U.S. Department of Agriculture for homes in designated rural and suburban areas. They offer $0 down and do not use traditional PMI , though they do charge a low upfront and annual guarantee fee. They feature strict household income limits.
• Credit Union Special Programs : Many regional and large credit unions (such as Navy Federal Credit Union or local institutions like Alliant Credit Union) offer specialized portfolio products featuring low down payments (0% to 5%) or zero-PMI promotions for qualified members.
• Physician / Doctor Mortgage Loans : Tailored for medical professionals (physicians, dentists, residents), these programs often allow low-to-zero down payments with no PMI , treating student loan debt leniently in underwriting.
• Special Community/Affordable Lending Programs : Certain national and regional banks (such as PNC's Community Loan) offer targeted low down payment options (e.g., 3% down) with no PMI tied to specific income brackets or census tracts.
• Piggyback Loans (80-10-10) : A structuring strategy where you put 10% down, take a first mortgage for 80% of the home value (avoiding PMI), and a second mortgage or home equity loan for the remaining 10%. (Note: You must weigh the second-loan interest rate against standard PMI costs).
• Lender-Paid Mortgage Insurance (LPMI) : You opt for a slightly higher interest rate on a conventional loan in exchange for the lender absorbing the monthly PMI cost entirely.

To help narrow down which of these paths fits you best, please let me know:

• Are you or your spouse a military veteran or active-duty service member?
• Are you looking at properties in a rural or suburban area?
• What is your approximate credit score and is this your first home purchase?

Yes. In the U.S., there are several ways to get low down payment + no monthly PMI, but the best option depends heavily on whether you qualify for VA/USDA and whether you're willing to accept a somewhat higher interest rate.

Best options to look at

A conventional mortgage normally requires PMI when you put less than 20% down.

One particularly interesting route is lender-paid mortgage insurance (LPMI): you can potentially put only 3% down and have no separate PMI payment, but the tradeoff is generally a higher interest rate.

If you're a first-time buyer

Freddie Mac's Home Possible program allows as little as 3% down, and it has reduced mortgage-insurance requirements. However, it does not normally mean zero mortgage insurance—the current program documentation still specifies MI coverage at high loan-to-value ratios.

So if your priority is specifically "I want to put 3–5% down and absolutely don't want a monthly PMI charge," I'd ask lenders to quote you:

1. 3% down conventional with lender-paid PMI
2. 5% down conventional with lender-paid PMI
3. 80/10/10 piggyback loan
4. Any proprietary 0–5% down/no-PMI program
5. VA or USDA, if you're eligible

The important thing is to compare the total monthly payment and APR, not just whether the lender calls something "no PMI." A no-PMI loan can cost more through a higher interest rate or a second mortgage.

If you tell me (1) approximate home price, (2) your credit score, (3) whether you're a veteran, (4) approximate household income, and (5) whether you're a first-time buyer, I can narrow this down to the most promising mortgage programs for you.