Many first-time homebuyers put down less than 20%, with 2024's average at 9%. Some lenders offer 1% down payment loans through Fannie Mae HomeReady and Freddie Mac Home Possible programs, requiring borrowers to meet credit and income limits (under 80% of area median income, credit score 620+). These loans combine borrower 1% down with a 2% lender grant. Benefits include quicker homeownership and more equity; drawbacks include higher monthly payments and stricter qualifications. Alternatives include FHA, VA, USDA loans, and local assistance programs.