Cash Strapped Newlyweds: 5 Low Down Payment Options to Help You Land Your Dream Home

Following the high of a wedding and the honeymoon, the next step for many newlyweds is to find their first home. As with many newly married couples they may be struggling financially or perhaps not in the spot they wanted to be at this point in their lives. When they look to purchase their first home, they are quickly overwhelmed with the idea that they need a 20% down payment. This is an outdated way of thinking that will only allow the newlywed couple to miss opportunities to buy their dream home. There are low down payment options for almost any scenario. Let’s see what the 5 best low down payment options for newlyweds are.


An FHA Loan is a government backed loan with very competitive interest rates with as little as 3.5% down on a home. There are mortgage insurance requirements and a cap on the loan amount, but this program has helped millions of newlyweds find that first home. Something else really neat about his program for the newlyweds and first time homebuyers is that the 3.5% down payment can be a gift from a relative. So those who may not have all 3.5% can get some outside help.


The Ohio Housing Finance Agency is a state funded organization that offers down payment assistance programs. Some of the programs include assistance for recent graduates, civil servants (police, firefighters, nurses, etc.), first time homebuyers, and many more. This grant can help cover all or a portion of the 3.5% down on a FHA loan. A disadvantage these programs are that they require the homeowner to stay in the house for a specific amount of time and if they move, the home owner must pay back a prorated portion of the down payment grant. Even though this is a tremendous program for newlyweds and first time homebuyers this potential payback could deter some prospective home buyers away.


This loan program requires $0 money on the purchase of a home in a rural area. There are income limits and property eligibility requirements for this loan type but requiring NO money down for the purchase of a home is a big pull for many cash strapped newlyweds.


If you or your spouse has served in the military you may be eligible for a VA Loan. This loan type also requires no money down for veterans. There may be specific eligibility requirements for you or your veteran spouse so be sure to check with your VA contact.

3% Down Conventional

This loan program is not government backed but you do have options to get a conventional loan for only 3% down. There is no funding fee associated with this loan like there is with an FHA and the down payment is just slightly less. The mortgage insurance on this loan product does go away after a period of time rather than an FHA loan which keeps the mortgage insurance for the life of the loan.

There are numerous options available to newlyweds looking to buy a house but may not have a ton of money for a down payment. These programs offer a tremendous opportunity to get that starter home or their forever home. Newlyweds are looking for that place to starting building their future together without breaking the bank and a home is a great place to start.


Zach is a Mortgage Advisor with State Bank in Dublin, OH. He writes and speaks regularly on the mortgage industry, personal finance, business development, and leadership. His focused approach on educating clients through the mortgage process allows him to help hundreds of new homeowners each year.

Learn more about Zach at, find him on instagram @mortgagecoachzach, or call/text him at 740-398-4917.

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