Can You Buy a Home With $0 Down? Here’s What You Need to Know

For many Americans, the biggest obstacle to homeownership isn’t the monthly payment—it’s coming up with a large down payment.

The good news is that several loan programs may allow qualified buyers to purchase a home with little to no money down.

While not everyone will qualify depending on your credit score which we’ll cover below, understanding your options can help you determine whether homeownership is closer than you think.

What Is a Zero-Down Mortgage?

A zero-down mortgage is a home loan that allows qualified buyers to finance 100% of the purchase price of a home without making a traditional down payment.

Instead of saving tens of thousands of dollars upfront, eligible buyers can focus on meeting lender requirements such as income, credit, employment history, and debt-to-income ratios.

1. VA Loans

VA loans are one of the most popular zero-down mortgage options available today.

Backed by the Department of Veterans Affairs, these loans are designed to help eligible veterans, active-duty service members, and certain surviving spouses become homeowners.

Benefits of VA Loans:

• No down payment required
• Competitive interest rates
• No private mortgage insurance (PMI) in most cases
• Flexible credit requirements

If you’ve served in the military, a VA loan may be one of the most affordable ways to purchase a home.

2. USDA Loans

USDA loans are backed by the U.S. Department of Agriculture and are intended to encourage homeownership in eligible rural and suburban areas.

Many buyers are surprised to learn that numerous suburban communities qualify for USDA financing.

Benefits of USDA Loans:

• No down payment required
• Competitive interest rates
• Lower mortgage insurance costs
• Flexible income qualifications

USDA loans do have income limits and location requirements, so eligibility varies by area.

3. Down Payment Assistance Programs

Many state and local housing agencies offer down payment assistance programs that can help cover some or all of the required down payment and closing costs.

These programs may come in the form of:

• Grants
• Forgivable loans
• Deferred-payment loans
• Low-interest second mortgages

Combined with certain loan programs, down payment assistance may allow qualified buyers to purchase a home with very little money out of pocket.

4. FHA Loans With Assistance Programs

While FHA loans generally require a minimum down payment, many buyers combine them with local assistance programs to significantly reduce their upfront costs.

FHA loans are often attractive because they offer:

• Lower credit score requirements
• Flexible qualification standards
• Competitive interest rates

For first-time homebuyers, FHA financing can be an excellent option when paired with available assistance programs.

5. Conventional Loans With Special Programs

Some lenders offer conventional loan products designed for first-time buyers or moderate-income households.

Depending on the lender and available assistance programs, some buyers may qualify for:

• Reduced down payment requirements
• Grant programs
• Closing cost assistance
• Special first-time homebuyer incentives

These programs vary by lender and location, making it important to explore all available options.

What Credit Score Do You Need?

Credit requirements vary depending on the loan program and lender.

Generally speaking:

• Higher credit scores often receive better interest rates.
• Some government-backed programs offer more flexibility for buyers with less-than-perfect credit.
• Stable income and manageable debt are also important factors.

Even if you’ve been told “no” in the past, loan programs and guidelines change frequently, making it worthwhile to explore your options.

Other Costs to Consider

Even with a zero-down mortgage, buyers may still be responsible for:

• Closing costs
• Home inspections
• Appraisal fees
• Moving expenses
• Homeowners insurance

However, some assistance programs and seller concessions may help reduce these expenses as well.

The Bottom Line

Buying a home with $0 down is possible for many qualified buyers through programs such as VA loans, USDA loans, and various state and local assistance programs.

The best loan option depends on your financial situation, location, military service history, and homeownership goals.

If you’ve been putting off buying a home because you thought you needed a large down payment, now may be the perfect time to explore your options and find out what programs are available in your area.