Low Down Payment Paths to Homeownership
November 5, 2025
For the teacher who grades papers late into the night, the nurse who pulls double shifts, and the young couple saving every penny for a future they can barely imagine —homeownership can feel like a distant dream.
Thankfully, there are programs available to provide real pathways for many aspiring homeowners.
UnitedOne Credit Union’s Local Home Loan Experts explore two options – Equal Access Homeownership Program and Community Heroes Program – that can help with a down payment to make owning a home a reality.
“I love that we have these products that kind of eliminate that myth that you have to have 20% down to purchase a home,” said UnitedOne Mortgage Specialist Marla Hitsman, NMLS # 2696821. “This opens the door for so many people to become homeowners.”
The Equal Access Homeownership Program is designed for first-time buyers who plan to live in the home as their primary residence.
The total qualifying income for all members must be less than or equal to 100% of the area media income (AMI) for the property location.
It offers a remarkably low-down payment option of just 1% and accepts alternative forms of credit.
“Maybe you’re renting, well, rent doesn’t show up on a credit report,” said UnitedOne Mortgage Specialist Julie Peot, NMLS # 441412. “We would reach out to the landlord. Or maybe your cell phone is in your name … those are called non-traditional credit using things that don’t show up on credit reports.”
The Equal Access Homeownership Program requires a minimum credit score of 660, but it also allows buyers to use gifts or grants toward their down payment.
“You can get as low as a 1% down payment through this program,” said Mortgage Specialist Kari Johnsrud, NMLS # 441414. “They will allow you also to use gifts or grants for that money, a gift from an acceptable relative.”
For those working in essential roles, the Community Heroes Program offers additional support purchasing a primary residence.
The eligible fields include those working in fire departments, public or private education, law enforcement, hospitals, paramedics, physicians’ offices, nursing homes, home healthcare, or former military personnel.
“At least one member must be currently employed either full-time or even part-time in one of the eligible professions,” Peot said. “It’s anybody in those facilities, so even the maintenance.”
The Community Heroes Program also offers a low-down payment option of just 1%. Meanwhile, the minimum credit score needed is 720 along with two months’ reserves.
“What reserves are is your whole monthly payment with taxes and insurance times two, and it doesn't have to be money that you take out,” Johnsrud said. “It could be just you showing us you have a retirement account with at least that much in there. They can count that towards reserves.”
You would need to have private mortgage insurance (PMI) on your loan for both the Equal Access Homeownership Program and Community Heroes program. However, that wouldn’t be the case for the duration of the mortgage.
“Once you build up 20% equity and you make your payments on time … you can typically request to have it dropped,” Johnsrud said.
Just remember that each buyer’s situation is unique. UnitedOne’s Local Home Loan Experts can help you go over your options if you’re in the market to purchase a home for the first time.
"It’s a great thing if you’re interested to sit down with one of us and crunch some numbers, figure out what would work for you," Hitsman said.
Whether you’re looking to buy your first home or tap into the equity of your current house for renovations, UnitedOne’s team of Local Home Loan Experts is a trusted resource in Manitowoc and Sheboygan.