Most people think you need to save up a big pile of cash before you can buy a home. But that’s not always true. There are real programs available right now that let you buy a house with zero down payment — or very little upfront. The trick is knowing which programs exist and whether you qualify.
If saving for a 20% down payment feels like it’s years away, this guide is for you. Let’s walk through your real options, step by step, in plain language.
Is It Really Possible to Buy a Home with No Money Down?
Yes, absolutely. The most common zero-down-payment options are government-backed loan programs: VA loans and USDA loans. These programs were designed specifically to help certain groups of people become homeowners without needing a large upfront payment.
Beyond those, there are also down payment assistance programs (DPAs) offered by states, cities, and nonprofits that can cover your down payment entirely. You don’t have to go it alone.
According to Bankrate’s 2025 Home Affordability Report, one in five aspiring homeowners believes they’ll never be able to save enough for a down payment — but many of them qualify for programs that can eliminate that barrier entirely.
The Two Main Zero-Down Mortgage Programs
Let’s start with the big two. These are the only loan types in the U.S. that truly offer 100% financing with no down payment required:
- VA Loans — For military service members, veterans, and eligible surviving spouses. No down payment, no private mortgage insurance (PMI), and typically some of the lowest interest rates available. You’ll need a Certificate of Eligibility (COE) to qualify.
- USDA Loans — For buyers purchasing homes in eligible rural or suburban areas. Income limits apply, and the property must be in a qualifying zone. No down payment required if you meet the criteria.
According to the U.S. Department of Veterans Affairs, VA home loans have helped over 28 million veterans and service members purchase homes since the program began, making it one of the most impactful homeownership benefits ever created.
For USDA eligibility, you can check your property and income at the USDA’s official program page. The tool is free and easy to use.
Comparing Zero and Low Down Payment Options
Not everyone qualifies for VA or USDA loans. Here’s a quick comparison of your main options, including low-down-payment programs:
| Loan Type | Min. Down Payment | Who Qualifies | PMI Required? |
|---|---|---|---|
| VA Loan | 0% | Veterans, active military, spouses | No |
| USDA Loan | 0% | Rural area buyers, income limits | No (guarantee fee applies) |
| FHA Loan | 3.5% | Credit score 580+, most buyers | Yes |
| HomeReady / HomePossible | 3% | Income below 80% area median | Yes (cancellable) |
| Conventional 97 | 3% | First-time buyers, 620+ credit score | Yes (cancellable) |
| With DPA Grant | 0% (grant covers it) | Varies by state and program | Depends on base loan |
What Are Down Payment Assistance Programs?
Down payment assistance programs, often called DPAs, are grants or low-interest loans provided by state housing agencies, local governments, and nonprofits. They exist to help people who can afford monthly mortgage payments but just don’t have the cash saved for a down payment.
Some DPAs are grants — you never pay the money back. Others are forgivable loans — the debt goes away if you stay in the home for a certain number of years. And some are second mortgages with very low or zero interest.
Nearly every state has at least one DPA program. To find what’s available near you, the U.S. Department of Housing and Urban Development (HUD) maintains a directory of approved housing counselors and programs. Many buyers are surprised by how much help is available when they actually go looking.
Things to Know Before You Apply
Going in with zero down has some trade-offs. Here’s what to keep in mind so you’re fully prepared:
- You’ll start with little or no equity — if home values drop, you could owe more than the home is worth
- VA and USDA loans come with fees — VA has a funding fee (1.25% to 3.3%), and USDA has a guarantee fee
- Your monthly payment will be higher — because you’re borrowing 100% of the purchase price
- Interest rates may be slightly higher — some lenders price in more risk for zero-down loans
- You still need money for closing costs — though these can sometimes be rolled into the loan or covered by a seller concession
The good news? All of these challenges are manageable if you plan properly and choose the right program for your situation.
If you’re a first-time buyer, also read our guide on factors that drive property value appreciation so you can buy smart and build equity fast. And if you’re exploring different markets, check out our post on how to buy land in Texas — a state with strong long-term appreciation trends.
For more guidance on the home-buying process in specific markets, explore our detailed page on California property ownership laws, which is especially useful if you’re considering a zero-down purchase on the West Coast.
How to Find and Apply for Zero Down Programs
Here’s the honest truth: most people don’t know these programs exist until someone tells them. The best place to start is by talking to a HUD-approved housing counselor or a licensed mortgage professional who works with these programs regularly.
You can also search your state’s housing finance authority website. Almost every state has one, and they list all current DPA programs with income limits, loan amounts, and instructions for applying.
Don’t wait until you feel “ready.” Start the process now, find out what you qualify for, and then decide. Many buyers are shocked to find out they can buy a home months or even years earlier than they expected.
Ready to get started? Contact our team at Buy Your Properties and we’ll help you understand your options and connect you with the right resources for your situation.
Conclusion
Buying a home with zero down payment is not a myth. It’s a real path that thousands of Americans take every year. VA loans, USDA loans, and state DPA programs have helped millions of people become homeowners without waiting years to save a large down payment.
The key is to know your options, check your eligibility, and take action. Homeownership is closer than you think — even if your savings account isn’t where you want it to be yet.
Frequently Asked Questions
Can I really buy a house with absolutely no money?
You can buy with zero down payment through VA or USDA loans, but you’ll still need money for closing costs unless those are covered by a seller concession or a DPA program. Some buyers do close with truly zero out of pocket, but it requires careful planning and the right programs.
Do I have to be a first-time home buyer to get zero down financing?
No. VA and USDA loans are not limited to first-time buyers. Some DPA programs do prioritize first-time buyers, but many are open to anyone who meets the income and location requirements. Check your state’s housing agency for specifics.
What credit score do I need to buy a home with no down payment?
VA loans have no official minimum credit score, but most lenders want at least 620. USDA loans typically require a 640 or higher. For FHA loans with 3.5% down, you need a 580 minimum. A higher score gets you better terms regardless of the loan type.
Are down payment assistance programs only for low-income buyers?
Not always. Many DPAs have income limits tied to the area median income (usually 80% to 120%), so moderate-income buyers can also qualify. In high-cost areas, the income limits can be surprisingly generous. Always check your state’s specific program rules.
What’s the biggest risk of buying a home with no down payment?
The biggest risk is starting with no equity. If home values fall or you need to sell quickly, you could end up owing more than the home is worth. That’s why it’s important to buy a home you plan to stay in for at least 3 to 5 years and in an area with solid long-term appreciation potential.