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Many homeowners believe that they should put down 20 percent of a home's value in order to purchase. However, there are many options available when it comes to purchasing a home with little to no down payment, including options from KeyBank.

If you're a first-time homebuyer, putting down 20 percent can be challenging. Sometimes buyers assume that Private Mortgage Insurance (PMI) is required, adding to monthly costs. However, these requirements are not necessary for all mortgage products — there are options available to everyone.

Here are some options that may work for your situation.

Key Community Mortgage® Exclusively from KeyBank

The Key Community Mortgage® is an affordable mortgage product offered specifically by KeyBank to match various lending needs. Here are some of the criteria to qualify:

  • Up to 100 percent financing available
  • No Private Mortgage Insurance (PMI)
  • Conventional financing
  • No income limitations on qualifying properties1

FHA Loan

The Federal Housing Administration (FHA) is part of, and they've been providing loans since 1934. With an FHA loan, you still go through a lender but the FHA insures the loan. Some of the advantages of an FHA loan include:

  • Low down payments
  • Low closing costs

For first-time homebuyers, your down payment can be as low as 3.5 percent.

VA Loan

Veterans Affairs mortgages, also called VA Loans, are for active and retired service members, and eligible surviving spouses. Keep in mind that length of service determines eligibility.

Unlike FHA loans, VA Loans do not require a down payment or PMI. VA Loans go through private lenders so you aren't applying directly to the VA. However, the VA does guarantee the loan.

Here are some of the benefits of a VA Loan:

  • No down payment as long as the sales price doesn't exceed the appraised value
  • No PMI requirement
  • VA rules limit the amount you can be charged for closing costs
  • Closing costs may be paid by the seller
  • The lender can't charge you a penalty fee if you pay the loan off early
  • VA may be able to provide you some assistance if you run into difficulty making payments

Fannie Mae Low Down Payment Loan Program

Fannie Mae's HomeReady program requires only a 3 percent down payment. Ideal HomeReady Borrowers include the following, but are not limited to:

  • Have low to moderate income – learn more here
  • Be a first-time homebuyer
  • Have limited cash for down payment

Which Option Is Best for You?

As you can see, there are a number of ways to purchase a home without putting down the standard 20 percent. The option that is best for you will likely require a few conversations with your lender. Be sure to speak with your financial advisor before making any final decisions.


Property must be located in a KeyBank Assessment Area. No income limitations if property is located in low or moderate income census tracts. For all other census tracts, income must be less than 80% of the Federal Financial Institutions Examination Council (FFIEC) Estimated MSA/MD Median Family Income.

This information and recommendations contained herein is compiled from sources deemed reliable, but is not represented to be accurate or complete. In providing this information, neither KeyBank nor its affiliates are acting as your agent or is offering any tax, accounting or legal advice.

By selecting any external link on, you will leave the KeyBank website and jump to an unaffiliated third-party website that may offer a different privacy policy and level of security. The third party is responsible for website content and system availability. KeyBank does not offer, endorse, recommend or guarantee any product or service available on that entity's website.

NOTICE: This is not a commitment to lend or extend credit. Conditions and restrictions may apply. Information and offers are subject to change without notice. All loans are subject to credit and collateral approval. Not all loans or products are available in all states.

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