How Can You Buy a House With No Money Down?

Yes, you can buy a home with no money down. There are two true zero-down loan programs. VA loans, for veterans and active military, and USDA loans, for homes in eligible rural and suburban areas. If neither fits, a few other paths can get you to the closing table with very little of your own cash.

VA loans: zero down, no monthly mortgage insurance

If you have qualifying military service, the VA loan is the strongest zero-down option there is. No down payment, and no monthly mortgage insurance, which keeps the payment lower than a comparable low-down conventional loan. There is a one-time VA funding fee, which can be rolled into the loan, and some veterans are exempt from it. For most eligible buyers, this is the first program to look at.

USDA loans: zero down in eligible areas

The USDA loan also allows zero down, for homes in areas the USDA considers rural or suburban. A surprising share of the map qualifies, including many outer suburbs, not just farmland. There are household income limits, and the property has to be in an eligible location, but if you fit both, this is a genuine no-down-payment path with lower fees than FHA.

Getting close to zero with low-down loans plus help

If VA and USDA do not fit, you can still get in with very little of your own money by combining a low-down loan with outside funds. An FHA loan needs 3.5 percent down, and a conventional loan can go as low as 3 percent. Then you cover that small down payment with down payment assistance or with gift funds from family. Stack a 3 percent loan with a down payment grant, and your out-of-pocket cash can get close to nothing.

What you still need

Zero down does not mean zero cash. You will still have closing costs, though those can often be covered by seller concessions or a lender credit. And you will still need to qualify on credit and income. If you want to see what your real number looks like, our down payment reality check walks through 0, 3, 3.5, and 20 percent side by side.