While a 20% down payment is ideal for buying a home, saving that much can prove difficult. There are many low-down-payment mortgages that you can choose from today. Three percent is the minimum down payment you can make if you are looking for a low-down-payment mortgage. This applies unless you are eligible for a VA Loan or USDA Loan. Here are some examples of 3% down mortgages available. Find a local lender for advice on your particular situation and goals.

Conventional 97 Mortgage

First-time buyers can get loans up to $417,000 with as little as 3% down. With three percent down, the maximum price you could purchase a home would be $430,000. You must not have purchased a home within the last three years to be considered a first-time purchaser.

For the down payment, you can use family funds or gift money from a relative. The home must be an owner-occupied single-unit home (including condos). This loan is not available to purchase multi-unit or investment properties.

Conventional 97 mortgages, which are 30-year fixed loans and require mortgage insurance, are 97 conventional mortgages. The monthly mortgage payment is not covered by mortgage insurance. However, the mortgage calculator will automatically calculate your mortgage insurance if you pay three percent.

HomeReady Mortgage

HomeReady's low down payment home loan can be used to get loans up to $417,000, with 3% down. With three percent down, the maximum price you can buy a home is $430,000

This loan has two special features: the ability for all household members to receive income to qualify and the ability to rent out a room to earn rental income to qualify.

The home must be your primary residence. You can't purchase second homes or investment properties. As long as you live in one of the units, you can purchase two-to four-unit properties. However, your down payment requirements for a property with two to four units will be higher.

HomeReady allows you to get fixed-rate mortgages for 10, 15, 20, or 30 years. You can also get adjustable rates mortgages for 5, 7, and 10 years.

Mortgage insurance is required for this loan, but it will be less expensive than Conventional 97 mortgage insurance. Rates for HomeReady loans are also lower.

The loan's flexible qualification and lower-cost features can be offset by restrictions on who can borrow the loan. This means that it can only be used by those who need it.

Mortgage Loans Available

Bank of America, Freddie Mac, and Self Help Ventures Fund offer this specialty product. This product allows you to make down payments as low as three percent, with no mortgage insurance or post-closing reserves.

Cash or gift funds can be used to make the down payment, but income must not exceed 100 percent of the area's median income, according to the U.S. Department of Housing & Urban Development.

The property must be a single unit, including condos. It must also be a primary residence and not be used as an investment property.

Borrowers who don't have a history of traditional credit such as student loans, car loans, and credit cards can still qualify for non-traditional credit. This includes documenting on-time payments for utilities like phone, electricity, or gas.

YourFirst Mortgage

YourFirst Mortgage, a low-down-payment mortgage option from Wells Fargo, is available to first-time home buyers. It allows down payments as low as 3%. You can also use down payment assistance programs and gift funds to pay closing costs.

If a HUD-approved housing counselor leads a course on homebuyer education, borrowers with a lower down payment than 10% might be eligible for a reduction in interest rates.

The HomeReady mortgage allows borrowers to use the income of all household members and rental income from renting a room to qualify. In addition, because it is flexible in income and credit guidelines, borrowers can show credit history from other sources such as rent, tuition, and utility payments.

It is similar to the Conventional 97 but requires mortgage insurance. This will increase your monthly cost. The mortgage insurance can be dropped once the LTV ratio is 80%.