Are government insured loans the only low down payment mortgages available to homebuyers?

The correct answer highlights that government-insured loans are not the only type of low down payment mortgages available to homebuyers. While loans that are backed by government programs, such as FHA (Federal Housing Administration), VA (Veterans Affairs), and USDA (U.S. Department of Agriculture), offer accessible low down payment options, there are also other mortgage products provided by private lenders that feature low down payment options.

For instance, some conventional loans may allow down payments as low as 3% for qualified borrowers, particularly through programs designed to make homeownership more affordable. Additionally, certain credit unions and lenders may offer their own unique low down payment options as part of their products. Therefore, there exists a range of alternatives beyond just government-insured loans that can assist homebuyers in achieving homeownership with a lower financial barrier at the time of purchase.