10 Best Mortgage Lenders for Low-Down-Payment Loans in 2025: The End of the 20% Down Payment Myth

The long-held belief that a 20% down payment is essential for homeownership is being dismantled. In 2024, first-time buyers put down a median of just 9%, proving that lower barriers to entry are now mainstream. This shift reflects both rising home prices and evolving lending practices.

VA and USDA loans lead the charge with zero-down options, while FHA and conventional programs offer sub-5% alternatives. Wells Fargo's proprietary program further expands accessibility. Veterans United, U.S. Bank, and New American Funding emerge as top facilitators of these inclusive mortgage products.

The market transformation underscores a broader financial democratization trend—one that parallels cryptocurrency's disruption of traditional finance. Just as digital assets bypass legacy gatekeepers, innovative lending programs are circumventing outdated wealth accumulation models.