How to Buy a House With Little Money Saved

You can buy a home with very little saved by combining a low or zero down payment loan with down payment assistance and seller-paid or lender-paid closing costs.

Start with a low or zero down loan program

VA and USDA loans require no down payment at all for eligible buyers. FHA requires 3.5%, and conventional programs like Conventional 97 require just 3%. This is your first lever, and it does the most work.

Layer in down payment assistance

State and local DPA programs, many covered in our state-by-state guide, can cover some or all of even that reduced down payment. Combined with FHA or conventional financing, it's possible to buy with very little out of pocket.

Use gift funds if available

FHA allows your entire down payment to come as a gift from a family member, employer program, or approved DPA source. Conventional loans allow gifts too, with slightly more documentation.

Negotiate seller-paid closing costs

Closing costs typically run 2% to 5% of the purchase price. In many markets, buyers can negotiate for the seller to cover some or all of these costs as part of the purchase agreement, especially in a slower market or when a home has been listed for a while.

What you still need, realistically

Even with all of the above stacked together, most lenders want to see some reserve funds, typically one to two months of mortgage payments left in the bank after closing, as a cushion. It doesn't need to be much, but coming in with absolutely nothing left is a red flag lenders look for.