Top 3 Affordable Loans for Homebuyers in 2025

By Shelby Campbell

With over two and a half decades of unwavering commitment to the mortgage industry, I am your seasoned Mortgage Loan Officer dedicated to helping individuals and families achieve their homeownership dreams.

Buying a home is one of the most exciting milestones in life, but the thought of saving for a huge down payment or dealing with high credit score requirements can make it feel impossible. The truth is, homeownership may be closer than you think. Today, I’ll share three loan options that could help you get into a home sooner than you expect, without the burden of a massive down payment.

FHA loans. If you’re a first-time homebuyer, an FHA loan might be your best bet. FHA loans allow lower credit scores as low as 580 and require only a 3.5% down payment, making them a great option for those with less-than-perfect credit. They also offer more flexible debt-to-income ratios, which can be helpful if you’re working with a tight budget.

However, it’s important to note that FHA loans come with mortgage insurance, which adds to your monthly costs. But despite this, they are still a solid choice for those looking to buy a home sooner rather than later.

USDA and VA loans. If you meet certain qualifications, both USDA and VA loans could allow you to buy a home with zero money down.

• USDA loan: These loans are available for homes in rural areas, and they require no down payment. There are income limits though, as you must earn no more than 115% of the median income in your area. You’d be surprised at how many small towns qualify.
• VA loan: A VA loan is one of the best options for veterans, active-duty military members, and surviving spouses. It also requires zero down payment and does not include mortgage insurance, which can save you hundreds every month. VA loans also have competitive interest rates and lower fees than conventional loans, making them an affordable option for many.

State housing programs. Many states offer housing programs that can help with down payments or even cover the entire amount. These programs vary by state, but they are an excellent option for those looking for assistance. Some offer down payment assistance grants, while others offer low-interest second loans to help with closing costs. The best part is that some programs even write off the loan after a few years if you stay in the home.

The catch is that many of these programs are for first-time homebuyers, and they may have credit score or income limits. But they can still be a great way to save money and get into a home.

If you thought owning a home was out of reach, think again. FHA loans, USDA and VA loans, and state housing programs can help you get into a home with little to no money down. You may even qualify without realizing it. If you’re still unsure which loan is best for you, feel free to call or text me at (503) 572-8865 or email me at shelby.campbell@fairwaymc.com. I’d love to help you navigate your options and get you into the home of your dreams.