Best Low Down Payment Mortgage Options in Wisconsin: 2025 Guide
If you're ready to buy a home in Wisconsin but don't have a large down payment saved, you're not alone. Plenty of smart buyers - especially first-timers - want safe, affordable ways to get the keys with minimal cash out of pocket. The good news: there are several proven low-down-payment options that work across Milwaukee, Waukesha, and statewide.
Below is a clear, side-by-side overview to help you choose the right fit - and how my team makes the process fast and straightforward.
1) Conventional 3% Down (HomeReady® / Home Possible®)
Conventional loans aren't just for big down payments anymore. With Fannie Mae HomeReady® and Freddie Mac Home Possible®, qualified buyers can purchase with as little as 3% down - often with lower mortgage insurance than FHA if your credit is strong.
Why choose it
- As little as 3% down
- Competitive monthly MI, which can be removed later
- Strong option for solid credit and stable income
Good fit for: Buyers with decent credit who want long-term MI savings and flexibility.
Related reading: Conventional Loans in Wisconsin (2025): What to Know
https://adamzmortgageteam.com/conventional-loans-wisconsin-2025-a-smart-choice-for-homebuyers/
2) FHA Loan (3.5% Down)
FHA remains a go-to for buyers who want flexible credit guidelines with 3.5% down. Gift funds are allowed, and refinancing later via an FHA Streamline can be simple if rates improve.
Why choose it
- 3.5% down with flexible credit requirements
- Gift funds allowed for down payment and closing costs
- Straightforward, widely accepted financing
Good fit for: Buyers rebuilding credit or those prioritizing easier approval over lowest MI.
3) VA Loan (0% Down)
For eligible Veterans, active-duty service members, and qualifying spouses, VA offers 0% down and no monthly mortgage insurance - often with some of the best rates available.
Why choose it
- 0% down
- No monthly MI
- Flexible guidelines and a streamlined refi option (IRRRL)
Related reading: VA Loans in Wisconsin - Top Benefits for Veterans in 2025
https://adamzmortgageteam.com/va-loans-in-wisconsin-top-benefits-for-veterans-in-2025/
4) USDA Loan (0% Down in Eligible Areas)
USDA loans provide 0% down financing in many rural and suburban communities across Wisconsin. Income and location eligibility apply.
Why choose it
- 0% down with low fixed rates
- Great for small towns and many suburban pockets
- Income and property eligibility maps apply
Good fit for: Buyers open to USDA-eligible locations who want zero-down financing.
5) Union Home Mortgage HomeStart (Down Payment Assistance)
HomeStart is our in-house down payment assistance solution designed to help qualified buyers reduce upfront costs. Depending on eligibility, HomeStart can provide assistance toward your down payment and/or closing costs - often structured as a grant or a second lien with favorable terms.
Key points
- Helps cover part of the down payment and/or closing costs
- Income/credit and program eligibility apply; primary residence required
- Can be paired with popular first-time buyer programs when eligible
- Aimed at making your total cash-to-close more manageable
Why it matters
If you're close on funds - or want to preserve savings for improvements and reserves - HomeStart can bridge the gap and keep your payment plan practical. My team will review your credit, income, and target purchase price to determine exactly how much assistance you may qualify for and how it affects your monthly payment and cash-to-close.
Which Option Is Right for You?
The best choice depends on your credit profile, income, preferred location, and how much you want to bring to closing. My team and I underwrite income up front, require only the documentation the guidelines call for, and move fast - so you can shop with confidence and close on time.
Get a Fast, No-Pressure Game Plan
I'll run the numbers for Conventional 3%, FHA 3.5%, VA 0%, USDA 0%, and HomeStart DPA side-by-side so you can see:
- Total cash to close
- Monthly payment (principal/interest, MI when applicable, taxes/insurance)
- Pros and cons for both the short and long term
Work with Wisconsin's Mortgage Expert
Serving all of Wisconsin - Milwaukee, Waukesha, Brookfield, Madison, and beyond. We keep it simple, transparent, and fast.
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Email: azeman@uhm.com
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