The non-traditional down payment

By Morgan Saylor

Scrounging up the money for a down payment on a home may seem futile, depending on your situation. Saving money for a rainy day period can seem like a challenge – Daniel Bortz via writes 69% of Americans have less than $1,000 in savings according to a recent survey by

That doesn’t mean you should give up on the dream of owning a home. 

The typical down payment on a conventional home loan is 20 percent, which can be substantial depending on the loan amount. However, there are ways to put down less money or none at all. Here are some options.


USDA loans are issued through the U.S. Department of Agriculture and are popular among buyers with no money for down payment as 100% financing is available for those who meet eligibility guidelines. Although location requirements must be met, USDA loans are an alternative route to homeownership when you don’t have a 20% down payment.


An FHA loan is a mortgage insured by the Federal Housing Administration, where borrowers pay for mortgage insurance which protects the lender from loss in case the borrower defaults. With this loan product, the minimum down payment is 3.5 percent.

For more on your options without a down payment, reach out to an SMC mortgage banker!


Tags: FHA loans, FHA, USDA loans, downpayment, downpayment assistance, georgetown, Pasadena, bowling green, louisville, elizabethtown, Ashland, berea, richmond, Eastpoint, Somerville, Clarksville