How to Buy a House With No Money Down (Every $0-Down Option)

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The down payment is the wall most would-be buyers hit. Saving 20% of a home price - or even 3.5% - can take years, and rent eats your savings the whole time. So here is the question worth answering clearly: can you actually buy a house with no money down, and if so, how?

The honest answer is yes, through a handful of specific, legitimate paths. Not gimmicks - real loan programs and assistance that exist precisely so people can buy without a big pile of cash. Here is every option, who each one is for, and the catch on each.

The Two True Zero-Down Loans

Only two mortgage programs let you finance 100% of the purchase price with no down payment at all. Both are government-backed.

1. VA Loans (for military)

If you are a veteran, active-duty service member, or qualifying surviving spouse, a VA loan is usually the best mortgage available to anyone, period: zero down, no monthly mortgage insurance, and competitive interest rates. There is a one-time VA funding fee (typically 1.25-3.3% of the loan, often financed in), but no PMI is a massive ongoing savings. If you are eligible, start here. Our VA home loans guide covers eligibility and the certificate of eligibility process.

2. USDA Loans (for eligible areas)

If you are not military, the USDA loan is the main zero-down path. It offers 0% down and the lowest mortgage insurance of any government loan, with two catches: the home must be in a USDA-eligible area (which is about 97% of U.S. land, including many suburbs), and your household income must fall under the local cap. Check any address in 30 seconds with our walkthrough on the USDA eligibility map, and see the full program in our USDA loans guide.

Getting to Zero on Other Loans

If neither of those fits, you can still reach zero (or near-zero) out of pocket by combining a low-down-payment loan with help that covers the down payment.

Down Payment Assistance (DPA)

Thousands of state and local programs provide grants, forgivable loans, or deferred second mortgages that cover your down payment and sometimes closing costs. Stack one on top of an FHA or conventional loan and your cash to close can drop to almost nothing. This is the most overlooked no-money-down route for non-military buyers in normal suburban areas. Our guide on down payment assistance programs explains how they work and where to find them.

Gift Funds

Most loan programs let a family member gift you the down payment. With a properly documented gift letter, gifted funds count as your down payment, so you can buy a home using money you did not save yourself. The lender will want a paper trail showing where the money came from.

Low-Down-Payment Loans (the near-zero options)

• FHA loans require just 3.5% down with a credit score of 580+. See our FHA loans guide.
• Conventional 97 loans let qualified buyers put down as little as 3%.
• Pair either with DPA or gift funds and the 3-3.5% can come from someone other than your own savings.

The Catch: Zero Down Is Not Zero Cost

Even with no down payment, buying a home is rarely truly free at the closing table. Budget for:

• Closing costs of roughly 2-5% of the price, though these can sometimes be covered by seller concessions, lender credits, or DPA.
• Earnest money deposit when your offer is accepted (usually credited back at closing).
• Reserves some lenders want to see in your account.

And the bigger-picture trade-off: zero down means you start with no equity and a larger loan, so your monthly payment is higher and you are more exposed if home values dip. For a VA borrower with no PMI, that trade is usually worth it. For others, weigh buying now against the cost of borrowing more. Run your real numbers with our how much house can I afford guide before you commit.

Bottom Line

No money down is real, not a scam, but it runs through specific doors: VA if you served, USDA if your area and income qualify, and down payment assistance or gift funds to cover the down payment on everything else. Figure out which door is open to you first, then build the rest of the plan around it. The lack of a down payment is no longer the reason you cannot buy - it is just a question of which program fits.