Can You Buy a House With No Down Payment?

Yes, you can buy a house with no down payment, but it’s not as simple as finding a random lender and asking for a “zero-down mortgage.” The best options are tied to specific loan programs, eligibility rules, location, military service, or help from a buyer assistance program.

The good news is that a down payment isn’t the only thing that decides whether you can buy. Lenders also look at your income, credit, debt, job history, and whether you have enough cash to cover closing costs.

This is financial information, not personal mortgage advice. A lender can review your exact situation and tell you what you qualify for.

A zero-down path can make buying possible sooner, but the details matter.

The main ways to buy with no down payment

The most common no-down-payment loan options in the U.S. are VA loans and USDA loans. They’re both backed by government agencies, but they serve different types of buyers.

VA loans

A VA loan is available to eligible veterans, active-duty service members, some National Guard and Reserve members, and certain surviving spouses.

The biggest benefit is simple: qualified buyers can often buy with 0% down. VA loans also usually don’t require monthly mortgage insurance, which can help keep the payment lower compared with some other low-down-payment loans.

You’ll still need to qualify based on credit, income, and debt. You may also have a VA funding fee unless you’re exempt.

USDA loans

A USDA loan can also offer 0% down, but it’s meant for homes in eligible rural or suburban areas. “Rural” doesn’t always mean farmland or the middle of nowhere. Some smaller towns and outer suburbs may qualify.

USDA loans also have income limits. The program is designed for buyers with low to moderate income, so not every household will fit the guidelines.

The home itself has to qualify too. Location matters, and the property condition has to meet the loan’s requirements.

Some USDA-eligible areas look more suburban than many buyers expect.

No down payment doesn’t mean no cash needed

This is the part that surprises people.

A no-down-payment mortgage may cover the purchase price, but you can still have upfront expenses. Common costs include:

• Earnest money deposit

This shows the seller you’re serious. It may later be credited back toward your costs at closing.

• Home inspection

Most buyers pay this out of pocket.

• Appraisal

The lender usually requires an appraisal to confirm the home’s value.

• Closing costs

These can include lender fees, title fees, prepaid taxes, homeowners insurance, and other charges.

• Moving costs

Boxes, movers, utility deposits, and small repairs can add up fast.

In some cases, the seller can pay part of your closing costs. That’s called a seller concession. How much they can contribute depends on the loan type and the deal terms.

You may also be able to use gift funds from an eligible family member or get help through a local or state assistance program.

Down payment assistance can fill the gap

If you don’t qualify for VA or USDA, don’t assume you’re stuck.

Many states, counties, and cities offer down payment assistance programs. Some help with the down payment, some help with closing costs, and some do both.

These programs can come in a few forms:

Grants

Forgivable loans

Deferred-payment loans

Money that usually doesn’t have to be repaid if you meet the rules.

A second loan that may be forgiven after you live in the home for a set time.

A second loan you don’t repay until you sell, refinance, or pay off the first mortgage.

Rules vary a lot. Some programs are only for first-time buyers. Others have income limits, purchase price limits, homebuyer education requirements, or location restrictions.

Also, “first-time buyer” doesn’t always mean you’ve never owned a home. Some programs define it as someone who hasn’t owned a home in the past three years.

Assistance programs can help cover the cash gap, but each one has its own rules.

What lenders still want to see

Even with 0% down, a lender wants to know the mortgage is manageable.

They’ll usually review:

• Credit history

You don’t always need perfect credit, but stronger credit can help.

• Debt-to-income ratio

This compares your monthly debt payments with your monthly income.

• Stable income

Lenders want to see that your income is steady and likely to continue.

• Cash reserves

Some programs may not require much in reserves, but having extra money after closing is still a smart buffer.

• Property condition

The home has to meet the loan program’s standards.

A zero-down loan can help you buy sooner, but it doesn’t make an unaffordable home affordable. Keep the monthly payment comfortable enough that you can still handle repairs, utilities, insurance changes, and normal life.

When a no-down-payment loan makes sense

A no-down-payment loan can be a good fit if you have steady income, manageable debt, and you’re buying a home you can afford long term.

It may make sense if:

• You qualify for VA or USDA financing

• You have strong income but haven’t saved a large down payment yet

• You have money for closing costs and emergencies

• The monthly payment fits your budget

• You plan to stay in the home long enough for the purchase costs to make sense

  
  

It may not be the best fit if the payment stretches you too thin. Buying with little cash upfront can leave less room for repairs right after closing. And homes always seem to need something, even when they’re in good shape.

The monthly payment matters just as much as the money due at closing.

FAQ

Can I really buy a home with $0 down?

Yes, if you qualify for a loan program that allows it, such as a VA loan or USDA loan. You may still need money for inspections, appraisal, closing costs, moving, and reserves.

What credit score do I need for a no-down-payment mortgage?

There isn’t one universal number. Loan programs have guidelines, and lenders may add their own requirements. A mortgage lender can check where you stand and explain your options.

Are no-down-payment loans only for first-time buyers?

No. VA and USDA loans are not limited only to first-time buyers, though you still have to meet their rules. Some assistance programs are for first-time buyers, but the definition can vary.

Can the seller pay my closing costs?

Sometimes, yes. Seller concessions are allowed on many loan types, but limits apply. The seller also has to agree to it as part of the contract.

Is it better to wait and save a down payment?

Sometimes. If waiting helps you lower your monthly payment, qualify for better terms, or keep more emergency savings, it may be worth it. If you already qualify and the payment is comfortable, buying sooner could make sense.

The bottom line

Buying a house with no down payment is possible, but the loan program, property, and your finances all have to line up. VA and USDA loans are the two big zero-down options, and assistance programs may help if you don’t fit those paths.

The smart move is to get clear numbers before you start touring homes. Find out what you qualify for, what cash you’ll still need, and what monthly payment actually feels comfortable.

If you want help sorting through your options, reach out to Team Tyler Nguyen and start with a real conversation about what’s possible.