I am looking for a mortgage that allows for a low down payment and does not require PMI.

If you're looking for a low-down-payment mortgage with no PMI, there are a few routes worth investigating:

• VA loan: If you're eligible through military service, this is the clearest match. VA-backed purchase loans can require 0% down and no PMI/MIP. There may instead be a one-time VA funding fee, although some borrowers are exempt.Veterans Affairs+1
• Conventional “no-PMI” loans: Some lenders offer conventional mortgages with down payments below 20% where they don't charge a separate PMI premium. The tradeoff is often a higher interest rate, so compare the total cost rather than focusing only on the PMI line.Consumer Financial Protection Bureau
• 20% down conventional: No PMI is generally required once you put 20% down, but obviously this doesn't meet the low-down-payment goal.Consumer Financial Protection Bureau
• FHA/USDA: These can have low or even zero down payments depending on the program, but they generally do involve mortgage insurance, so they don't meet your no-PMI requirement in the strict sense.Consumer Financial Protection Bureau

What I'd compare

For a conventional no-PMI mortgage, ask lenders for the same scenario—for example, a $400,000 purchase with 5% or 10% down—and request:

1. Interest rate and APR
2. Monthly principal + interest
3. PMI amount (or confirmation that there is none)
4. Closing costs
5. Any lender credits
6. Whether the rate is higher specifically because PMI is being waived
7. Cash required at closing

If you tell me (a) your approximate home price, (b) how much you want to put down, (c) your credit-score range, and (d) whether you're a veteran/active-duty service member, I can narrow down which mortgage structures are likely to fit and, if you want, look for current lenders/programs available in New Jersey.

Finding a low down payment mortgage that completely avoids Private Mortgage Insurance (PMI) is entirely possible, though these specialty programs usually require meeting specific eligibility criteria regarding your profession, military service, income, or the property's location.

The primary mortgage options that combine a low (or zero) down payment with no PMI include:

• VA Loans (0% Down, No PMI): Available to eligible active-duty military, veterans, and surviving spouses through lenders like Navy Federal Credit Union or other military-focused lenders. Instead of monthly PMI, they charge a one-time VA funding fee (which can be rolled into the loan).navyfederal.org+2
• USDA Loans (0% Down, No PMI): Designed for moderate- to low-income buyers purchasing homes in designated rural or suburban areas. They require a guarantee fee instead of traditional monthly PMI.
• Special Lender Programs (e.g., Rocket Mortgage ONE+): Some major lenders offer conventional options like the Rocket Mortgage ONE+ program, which allows a 1% down payment where the lender funds an additional 2% grant, resulting in a 3% equity stake without requiring PMI (often income-restricted).
• Doctor / Physician Loans: Offered by many major banks (like Bank of America or Truist) for medical professionals (MDs, DOs, DDS). They often allow very low or zero down payments with zero PMI based on your future earning potential.
• Local and State Housing Grants: Many state and municipal housing finance agencies (HFAs) offer down payment assistance second liens or grants that pair with conventional loans to eliminate or bypass standard PMI costs.
• Credit Union Portfolio Loans: Local or regional credit unions often design custom "in-house" mortgage portfolios featuring low or zero down payments and no PMI requirements.cuofamerica.com+1

To help narrow down which of these options you might qualify for, please share:

• Are you or a spouse active military or a veteran?
• Are you a first-time homebuyer?
• What is your approximate credit score range and general location/state?

Finding a mortgage with a low down payment that completely skips Private Mortgage Insurance (PMI) is possible, but it usually requires qualifying for specific government-backed programs, working with specific lenders, or using specialized financing structures.

The primary options that allow low or zero down payments without traditional PMI include:

• VA Loans (Department of Veterans Affairs): If you are an active-duty service member, veteran, or eligible surviving spouse, you can get a $0 down payment mortgage with no monthly PMI . Instead of PMI, VA loans charge a one-time funding fee (which can be rolled into the loan amount). You can check eligibility details through the Department of Veterans Affairs.fairwaymortgagecarolinas.com
• USDA Loans (U.S. Department of Agriculture): Designed for properties in designated rural and suburban areas, USDA loans offer 0% down payment options. While they do charge an upfront guarantee fee and an annual fee (which acts similarly to mortgage insurance), the monthly cost is typically lower than conventional PMI. You can review geographic eligibility on the USDA Rural Development Eligibility Portal.fairwaymortgagecarolinas.com+1
• Credit Union Special Programs: Many credit unions (such as Navy Federal Credit Union or local regional credit unions) offer proprietary 100% financing or low down payment portfolio loans that do not charge PMI. Because they keep these loans on their own books rather than selling them to Fannie Mae or Freddie Mac, they set their own underwriting rules.cuofamerica.com+1
• Piggyback Loans (80-10-10): If you are using a conventional loan structure, you can avoid PMI by breaking the financing into an 80% first mortgage, a 10% second mortgage (or HELOC), and a 10% cash down payment . While you aren't putting 20% down out of pocket initially, the primary loan is kept at 80% LTV (Loan-to-Value), meaning no PMI is attached to it. However, you have to weigh the interest rate on that secondary 10% loan.

If you'd like to narrow down which path fits you best, tell me:

• Are you or your spouse affiliated with the military?
• Are you open to looking at homes in suburban or rural areas?
• What credit range and down payment amount (e.g., 0%, 3%, 5%) are you targeting?

I can help you pinpoint the exact program or lender type to explore.

A VA loan, USDA loan , or special lender program like a community bank or credit union mortgage can offer a low down payment with no private mortgage insurance (PMI).navyfederal.org+3

Low Down Payment Mortgages Without PMI

• VA Loans : Backed by the Department of Veterans Affairs, these loans require 0% down and no PMI for eligible military members, veterans, and surviving spouses, though a one-time funding fee applies.themortgagereports.com+1
• USDA Loans : Backed by the U.S. Department of Agriculture for rural and suburban homebuyers, these offer 0% down with no standard PMI, though they do require a different structure of upfront and annual guarantee fees.cnbc.com+2
• Credit Union and Bank Special Programs : Many local credit unions (such as Navy Federal Credit Union or NASA Federal Credit Union ) and regional banks (like PNC Bank ) offer proprietary low-down-payment portfolio loans (e.g., 3% to 5% down) that waive PMI, sometimes trading it for a slightly higher interest rate.nasafcu.com+3
• Lender-Paid PMI (LPMI) : You choose a conventional loan where the lender pays the PMI, but you pay a higher interest rate on the loan for its entire life.navyfederal.org+2
• Piggyback Loan (80-10-10) : You take out a first mortgage for 80% of the home's value, a second mortgage for 10%, and put down 10% cash, avoiding PMI by keeping the main loan at an 80% loan-to-value ratio.themortgagereports.com+1

If you want, tell me:

• Are you or a spouse eligible for military benefits?
• What state or general location are you buying in?

I can give you more specific loan options.