If you're thinking about buying a home in the next few months, now is the time to get pre-approved. Pre-approval tells you exactly what you can borrow, locks in your negotiating position, and — contrary to what many buyers assume — you do not need a 20% down payment to get started. High down payments are no longer the barrier they once were: several no-down or low-down loan options are available to Maryland and DC area buyers today.
Getting pre-approved should be your first step, before you tour a single house. Here's why it matters, what it takes, and which low-to-no down payment programs could get you to the closing table.
Why pre-approval matters before you look at houses
Pre-approval is a lender's review of your finances before you make an offer, and it tells you the maximum amount a lender is tentatively willing to lend you. According to Lower's pre-approval guide, a pre-approval letter is a statement from a lender that they are tentatively willing to lend you money up to a certain loan amount, based on a review of your credit, income, assets, and debts.
In a competitive market, that letter gives you a real edge. Sellers are far more comfortable considering an offer from a buyer whose finances have already been reviewed by a lender than from someone who is still figuring out their budget. When several offers land on the same house, the buyer who shows up pre-approved is usually the one a seller takes seriously.
Pre-approval also protects you from falling in love with a house you cannot afford. You'll know your exact price range before you start touring, which saves you time, emotional energy, and the disappointment of finding "the one" only to learn it's out of reach. As a Bethesda-based mortgage loan officer, I recommend my clients get pre-approved the moment they decide to buy — before they open a single listing.
What are your low and no down payment options?
The idea that homebuyers must put 20% down is one of the most persistent myths in real estate. In practice, several government-backed and conventional programs let you buy with far less — and in some cases, nothing at all. Here are the main routes available to Maryland and DC buyers.
Conventional loans (3% down). Fannie Mae's HomeReady and Freddie Mac's Home Possible programs allow qualifying low-to-moderate-income buyers to purchase a home with a down payment as low as 3% of the purchase price, according to FHA's down payment guide. For any conventional loan with less than 20% down, private mortgage insurance is required, but the low entry cost makes this a popular first-time buyer path.
FHA loans (3.5% down). Backed by the Federal Housing Administration, FHA loans carry the most forgiving credit standards of the common options. You can qualify with a FICO score as low as 580 with just 3.5% down, or as low as 500 if you put 10% down, per CNBC Select. FHA loans have no income limits, which makes them a flexible choice across the region.
VA loans (0% down). For qualifying service members and veterans, a VA loan requires no down payment at all and typically offers some of the lowest rates available. Because it's guaranteed by the Department of Veterans Affairs, it's widely considered the most powerful zero-down option for those who are eligible, as reAlpha's zero-down guide explains.
USDA loans (0% down). The USDA loan program helps everyday families buy homes in rural and suburban areas with no down payment and income limits that were expanded in 2026. A common misconception is that USDA loans are only for farms — in reality, many normal single-family homes outside major metros qualify, per reAlpha.
Loan type | Typical minimum down payment | Best for |
|---|---|---|
Conventional | 3% | Buyers with solid credit who want a standard loan |
FHA | 3.5% | First-time buyers or anyone rebuilding credit |
VA | 0% | Eligible veterans and service members |
USDA | 0% | Buyers in eligible rural and suburban areas |
How fast can you get pre-approved?
Pre-approval typically takes one to several business days — some borrowers get a letter in as little as one business day, while others wait a few days for the lender to review documents. According to Lower's pre-approval guide, the exact timeline depends on your paperwork, income type, credit profile, lender process, and how quickly you respond to follow-up requests. More complex files — self-employment income, multiple jobs, or recent credit events — take longer.
To move fast, gather your paperwork before you apply. You'll need pay stubs, W-2s, tax forms, bank statements, and identification. The lender reviews your credit history and score, your income and employment, your monthly debts, your available assets, and your down payment funds to determine what you qualify for. Responding quickly to any follow-up requests keeps the timeline to a business day or two.
What does a low down payment mean for your monthly budget?
A smaller down payment lowers your upfront cash need, but it changes your monthly payment too. On conventional loans with less than 20% down, private mortgage insurance adds a monthly cost until you've built enough equity. FHA loans carry an upfront and annual mortgage insurance premium for the life of the loan in most cases. VA and USDA loans, by contrast, don't require monthly mortgage insurance — which is one reason they're so attractive to eligible buyers.
The tradeoff is worth it for many first-time buyers. Rather than waiting years to save a full 20% down payment while rents and home prices climb, a 3% or 3.5% down loan gets you into the market sooner and starts building equity immediately. For a Maryland or DC buyer, that's often the difference between owning this year and renting for several more.
What Utah and Nationwide buyers should know
Local buyers have one more advantage: down payment assistance. Utah and neighboring counties run programs that can cover or reduce the upfront cost for qualifying first-time buyers, and many lenders stack these with a low-down loan so you reach closing with very little of your own money in the deal. The Utah Mortgage Program homebuyer assistance are two of the most-used routes in the region. Stack one of these programs on a 3% conventional loan and a buyer can reach closing with little to none of their own cash in the deal — which is exactly how high down payments stop being a barrier to entry.
The other thing to plan for in a market like this one is speed. Houses in desirable Utah neighborhoods don't stay on the market long, and buyers who arrive pre-approved can write a serious offer the day a listing goes live. Waiting to get pre-approved while you shop means every house you like is a race you might already be losing.
Your next step: get pre-approved now
If you're planning to buy in the next few months, the time to start is today. Here's what the next week should look like:
Gather your documents — pay stubs, W-2s, two years of tax returns, recent bank statements, and your ID.
Review your credit report for errors that could drag your score down.
Talk to a loan officer to run your numbers and compare your loan options.
Get your pre-approval letter in hand so you're ready to move when you find the house.
As a mortgage loan officer in Southern Utah, I work with buyers across Utah and nationwide every day, and the biggest mistake I see is people waiting too long to get pre-approved. Whether you're a first-time buyer with 3% saved or a veteran eligible for a zero-down VA loan, your next step is the same: get your finances reviewed, know your number, and be ready to act. The market won't wait — but a pre-approved buyer doesn't have to.
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