A differential assembly for a vehicle having a housing and a differential mechanism rotatably mounted in the housing. The differential mechanism includes a support shaft transversely disposed therein for supporting a pair of rotating cross gears. The rotation of the differential mechanism defines a differential spin axis and a support shaft spin plane. A pinion gear is also provided for rotatably driving the differential mechanism. The pinion gear extends from the housing and defines a pinion spin axis. The pinion spin axis is parallel to and offset from the support shaft spin plane. A pair of opposing bearings are then provided for rotatably supporting the differential mechanism. The pair of bearings is disposed in the housing, wherein one of the pair of bearings is substantially aligned with the pinion spin axis. This arrangement minimizes the size of the front differential and further improves the ground clearance and suspension travel of the vehicle.