To afford a house with a insufficient down payment, explore down payment assistance programs, consider government-backed mortgages like FHA or VA loans, and leverage strategies such as rent-to-own agreements or house hacking. Prioritize programs offering grants or matched savings, apply for loans with lower down payment requirements, and combine rental income with homeownership to offset costs.

Down payment assistance programs and specialized mortgages are critical because they reduce upfront costs and access to affordable financing. For example, the Federal Housing Administration (FHA) requires just 3.5% down payment, while the Department of Veterans Affairs (VA) offers zero-down loans. According to the National Association of Homebuyers, 6 million U.S. households used down payment assistance in 2022, enabling homeownership despite limited savings. FHA loans, which accounted for 10% of all mortgages in 2023 (Consumer Financial Protection Bureau), are popular due to their lenient credit score requirements (as low as 580) and flexible income limits. Meanwhile, house hacking—owning a primary residence while renting out part of it—has surged, with 34% of first-time buyers using this strategy in 2023 (Urban Institute). Data from the Federal Reserve shows the median down payment for U.S. homebuyers was 13% in 2023, but assistance programs and alternative loans help buyers meet this threshold with far less. Combining these tools allows households to overcome down payment barriers while maintaining financial stability.