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Navigating High Interest Rates: Your Guide to No and Low Down Payment Programs


Hey there, future homeowners! High interest rates got you worried? Don't fret. There are low down payment programs that can help you become a homeowner, even in this challenging market.

Today's Interest Rates

Interest rates are currently at their highest in nearly 23 years, with the average 30-year mortgage rate at 7.98% (30-year fixed FHA rate at 7.478%). But don't let that deter you; there are ways to navigate this landscape.

No Money Down Programs

USDA Loans

  • Eligibility: Rural areas, some income restrictions

  • Benefits: No down payment, low mortgage insurance

VA Loans

  • Eligibility: Veterans and active-duty military

  • Benefits: No down payment, no PMI

Guild Mortgage Zero Down Program

  • Eligibility: FHA borrowers

  • Benefits: Second mortgage that covers down payment and closing costs. Source

Zillow Home Loans 1% Down Payment Program

Eligibility: First-time homebuyers in Arizona (expanding to other markets)

  • Benefits: Zillow covers 2% of the down payment at closing, allowing you to pay just 1% upfront. Source

1% Down Programs

Some lenders still offer 1% down payment programs, which can be a boon for those who can afford a small down payment but are put off by high interest rates.

How It Works

  • You put down 1%.

  • The lender contributes another 2%.

  • You start with 3% equity in your new home.

How These Programs Help You

  1. Lower Initial Costs: No or low down payment means you can buy a home sooner.

  2. Flexibility: High interest rates are less daunting when initial costs are low.

  3. Build Equity Faster: With lender contributions in 1% down programs.


High interest rates shouldn't deter you from your dream of homeownership. With low down payment programs, you can still make that dream a reality.


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