Can you get a home loan without a down payment? Yes, eligible homebuyers in the United States can purchase a home without making a down payment through programs such as VA and USDA mortgages. Other buyers may qualify for down payment assistance that helps cover the upfront contribution required by certain home loans.
For people who have steady income but limited savings, these options can make buying a home more achievable. Instead of saving thousands of dollars for a down payment, qualified borrowers may be able to finance the eligible purchase price through a zero-down mortgage.
However, buying a house without a down payment does not mean you can purchase a home without any money. Closing costs, property taxes, homeowners insurance, and other expenses may still apply. Lenders also review credit history, income, outstanding debts, and the property’s eligibility before approving a mortgage.
Understanding how zero-down home loans work can help you identify the right financing option, estimate your expenses, and decide whether buying a home now fits your financial situation.
What Does It Mean to Buy a House With No Down Payment?
A down payment is the portion of a home’s purchase price that a buyer pays upfront rather than borrowing from a mortgage lender. Many traditional home loans require buyers to contribute a percentage of the purchase price from their own funds or other approved sources.
A zero-down-payment mortgage allows an eligible borrower to finance the entire eligible purchase price without making that initial contribution.
For example, consider a home priced at $300,000. With a conventional mortgage requiring a 5% down payment, the buyer would need $15,000 for the down payment alone. With an eligible zero-down mortgage, that initial contribution could be $0.
The buyer would still need to qualify for the mortgage and determine how to cover any remaining closing expenses.
A zero-down loan can also result in a larger mortgage balance than a loan with a down payment. This can affect monthly payments, total interest costs, and the amount of equity the homeowner initially builds.
Which Home Loans Allow You to Buy a House Without a Down Payment?
The two main mortgage options for eligible buyers seeking zero-down financing are VA loans and USDA loans. Each program has different eligibility requirements, benefits, and costs.
1. VA Home Loans for Eligible Military Borrowers
VA-backed mortgages help eligible veterans, active-duty service members, and certain surviving spouses purchase homes.
The Department of Veterans Affairs guarantees a portion of qualifying mortgages provided by participating lenders. This arrangement helps eligible borrowers access financing without a traditional down payment.
The main benefits of VA home loans include:
- No down payment may be required when the borrower meets the program’s requirements.
- Monthly private mortgage insurance is not required.
- Eligible borrowers may use their VA loan benefit more than once, subject to entitlement and other applicable rules.
- The program supports purchases of qualifying primary residences.
- Certain eligible borrowers can receive an exemption from the VA funding fee.
Applicants generally need a Certificate of Eligibility and must satisfy the lender’s underwriting requirements. Lenders review income, credit history, debts, and the borrower’s ability to manage the mortgage payments.
A VA loan does not guarantee approval, and a down payment may be necessary in some circumstances. Buyers should also understand the VA funding fee, which applies to many borrowers unless an exemption is available.
For eligible military households that have limited savings, a VA loan can be an attractive way to purchase a home without making a down payment.
2. USDA Home Loans for Eligible Homebuyers
USDA mortgages provide another opportunity to purchase a home without a down payment. These loans are available through the U.S. Department of Agriculture’s Single Family Housing Guaranteed Loan Program.
The program is intended to help eligible households purchase primary residences in qualifying rural areas. Some suburban communities also meet the geographic requirements.
You do not necessarily need to live on a farm or in an isolated community to qualify. Certain areas near cities may be eligible, depending on the property’s location.
Important USDA loan features include:
- Financing of up to 100% of the eligible property’s value, subject to program requirements.
- Household income limits that vary by location and household size.
- Property location and eligibility requirements.
- A requirement that the home serve as the borrower’s primary residence.
- Applications through participating mortgage lenders.
USDA loans generally target eligible low- and moderate-income households. Buyers must satisfy the applicable income requirements and demonstrate their ability to repay the mortgage.
These loans also have an upfront guarantee fee and an annual fee. Borrowers should include these costs when comparing USDA financing with other mortgage options.
For buyers who do not qualify for VA loans, USDA financing may offer a practical route to homeownership without a down payment.
Can You Get a Home Loan Without a Down Payment If You Are Not a Veteran?
Yes. You do not need military service to qualify for every zero-down mortgage program.
USDA financing is available to eligible civilian households that meet the program’s income, property, and occupancy requirements. Buyers who cannot qualify for USDA or VA loans may also explore down payment assistance.
Assistance programs can help eligible borrowers cover the minimum contribution required by certain mortgages. Depending on the program, the funds may also help with eligible closing expenses.
However, assistance programs do not automatically eliminate the down payment for every buyer. Some require the borrower to contribute personal funds, complete homebuyer education, or meet specific income and purchase-price limits.
Before applying, investigate the homeownership assistance options available through your state housing finance agency and local government.
Can Down Payment Assistance Cover Your Down Payment?
Down payment assistance can help homebuyers who have enough income to afford a mortgage but lack the savings needed to complete a purchase.
State housing agencies, local governments, and nonprofit organizations offer programs for eligible buyers. The amount and type of assistance depend on the program’s rules.
Common assistance options include the following.
- Grants: Eligible recipients generally do not have to repay grants when they meet the program’s conditions.
- Deferred-payment loans: These loans postpone repayment until a specified event, such as selling the home or refinancing.
- Forgivable loans: These loans may be forgiven after the borrower satisfies certain requirements, such as occupying the home for a specified period.
- Closing cost assistance: These programs help pay eligible transaction expenses rather than the down payment itself.
Some programs work with conventional mortgages, while others support FHA or other eligible loan types. Buyers must confirm that the assistance can be combined with the mortgage they intend to use.
Read the repayment terms carefully before accepting assistance. A deferred loan may eventually become payable even if the borrower does not have to make monthly payments initially.
It is also important to determine whether the program covers the down payment, closing costs, or both. These expenses are different, and assistance for one does not necessarily cover the other.
What If You Do Not Qualify for a Zero-Down Mortgage?
You may still be able to buy a home with a relatively small down payment.
Several mortgage programs help eligible buyers purchase a property without providing the traditional 10% or 20% down payment. Although these loans do not automatically provide zero-down financing, they can reduce the amount buyers need to save.
FHA Loans
Federal Housing Administration-insured mortgages allow eligible borrowers to make a down payment as low as 3.5% when they meet the applicable credit requirements.
For a $300,000 home, a 3.5% down payment equals $10,500. Buyers may be able to use eligible gift funds or approved down payment assistance to cover some or all of this amount.
FHA loans also involve mortgage insurance costs. Buyers should compare these expenses with those of other mortgage programs before choosing a loan.
Conventional Loans With a 3% Down Payment
Some conventional mortgage programs allow qualified borrowers to make a down payment as low as 3%.
Fannie Mae’s HomeReady program is one example of a low-down-payment option for eligible borrowers. Other conventional programs also offer financing with relatively small initial contributions.
Buyers may be able to use eligible gifts or approved assistance to cover the down payment. However, program requirements determine which funding sources are acceptable.
Private mortgage insurance generally applies to conventional mortgages with less than 20% down, although specific terms vary.
For buyers who cannot access VA or USDA financing, a conventional mortgage with a small down payment may provide a realistic alternative.
How Much Money Do You Need to Buy a House Without a Down Payment?
Even when you qualify for a zero-down mortgage, you may need money for expenses that the loan does not cover.
The total amount depends on the property, mortgage program, lender, purchase agreement, and assistance available.
| Expense | Why it matters |
|---|---|
| Down payment | May be $0 with an eligible VA or USDA mortgage. |
| Closing costs | May include lender charges, appraisal fees, title services, and other transaction expenses. |
| Property taxes | Buyers must budget for applicable property taxes. |
| Homeowners insurance | Mortgage lenders generally require appropriate insurance coverage. |
| Prepaid expenses | May include prepaid interest, initial insurance premiums, and tax-related amounts. |
| Home inspection | An inspection can help identify potential maintenance or structural problems. |
| Moving costs | Moving services, utility setup, and household essentials may require additional funds. |
| Emergency savings | A financial reserve helps cover unexpected repairs and other expenses. |
Seller concessions, lender credits, and down payment assistance may reduce certain upfront costs when permitted by the mortgage program.
However, buyers should not assume that these options will cover every expense. The amount available depends on the loan’s rules and the specific transaction.
Ask your lender for a written estimate of the total cash required to close. This helps you understand how much money you need beyond the down payment.
What Credit Score Do You Need for a Zero-Down Home Loan?
There is no single credit score requirement that applies to every zero-down mortgage.
VA and USDA loans follow their respective program rules, while individual lenders may establish their own credit standards. A lender may consider the applicant’s payment history, income, outstanding debts, and overall financial circumstances.
A stronger credit profile may help a borrower qualify for more favorable mortgage terms, but a high score does not guarantee approval.
Lenders also consider the debt-to-income ratio, which compares monthly debt obligations with qualifying income. Existing car payments, credit card balances, student loans, and other debts can affect how much a borrower can afford.
Applicants may need to provide pay stubs, tax returns, bank statements, and other financial documents during the application process.
If you have limited credit history or previous credit problems, ask lenders about their requirements before submitting a formal application. Different lenders may evaluate eligible applicants differently.
Advantages of Buying a Home Without a Down Payment
The main advantage of zero-down financing is that eligible buyers can purchase a home without first saving a substantial amount for a down payment.
Other potential benefits include:
- Keeping more savings available for emergencies.
- Preserving cash for moving expenses and household needs.
- Avoiding the need to sell investments to fund a down payment.
- Entering the housing market sooner when the purchase is affordable.
- Taking advantage of special mortgage benefits available through qualifying programs.
VA borrowers also benefit from the absence of monthly private mortgage insurance.
For buyers with stable income, manageable debts, and limited savings, these advantages can make a significant difference.
Nevertheless, purchasing a home sooner is not always the best financial decision. Buyers should make sure they can comfortably afford the monthly payment and maintain enough savings for unexpected expenses.
What Are the Disadvantages of a Zero-Down Mortgage?
A zero-down mortgage reduces the initial cash required for a home purchase, but it also creates financial risks.
When you finance the entire purchase price, you start with little or no equity from a down payment. If property values fall or you need to sell soon after buying, the sale proceeds may not cover the outstanding mortgage balance and selling expenses.
Other potential disadvantages include:
- Higher total interest costs because you borrow more money.
- Monthly payments that may be difficult to manage after an income reduction.
- Mortgage-related fees or insurance expenses.
- Unexpected maintenance and repair bills.
- Less financial flexibility when selling or moving shortly after the purchase.
These risks do not mean that zero-down financing is always a poor choice. They mean that borrowers should understand the long-term commitment before proceeding.
Calculate your expected monthly mortgage payment and include property taxes, homeowners insurance, utilities, maintenance, and other recurring expenses.
Keeping emergency savings after closing can help protect you from unexpected financial setbacks.
How to Apply for a Home Loan Without a Down Payment
Applying for a zero-down mortgage becomes easier when you understand the available programs and prepare your financial documents.
Step 1: Determine Which Programs You Qualify For
Start by checking whether you qualify for a VA loan or USDA financing. If neither option fits your circumstances, investigate down payment assistance and low-down-payment mortgage programs.
Step 2: Review Your Financial Situation
Check your credit reports, income, existing debts, and savings. Decide how much you can comfortably spend on housing each month.
Step 3: Contact Mortgage Lenders
Speak with lenders that offer the programs you are considering. Ask about credit requirements, interest rates, fees, eligibility, and closing costs.
Step 4: Compare Your Options
Request Loan Estimates from multiple lenders when possible. Compare the interest rate, monthly payment, upfront charges, and total estimated cash required to close.
Step 5: Find an Eligible Home
Search for properties that meet your budget and the selected program’s requirements. USDA borrowers should confirm that a property is in an eligible area.
Step 6: Complete the Mortgage Approval Process
The lender reviews your financial records, evaluates the property, and determines whether the mortgage meets its underwriting requirements.
Before closing, review the final loan documents and confirm how much money you must pay at closing.
Following these steps can help you avoid choosing a mortgage based only on an advertised zero-down offer.
Is a Zero-Down Home Loan Worth It in 2026?
A zero-down home loan can be a useful option in 2026 for buyers who qualify and can comfortably afford the mortgage payments.
VA financing may be particularly attractive to eligible military borrowers because it can eliminate the down payment and does not require monthly private mortgage insurance. USDA financing offers another zero-down option for qualifying households purchasing eligible primary residences.
Buyers who cannot access these programs should explore down payment assistance, FHA loans, and conventional mortgages with low minimum down payments.
The right option depends on the full cost of borrowing, not just the amount needed upfront. Interest rates, lender fees, mortgage insurance, guarantee fees, repayment terms, and household financial stability all matter.
Be cautious about advertisements promising guaranteed approval or claiming that every buyer can purchase a home without any upfront expenses. Legitimate mortgage lenders still evaluate eligibility and the borrower’s ability to repay the loan.
The goal should be to secure financing that makes homeownership affordable over the long term, rather than simply finding a mortgage that requires no down payment.
Can You Get a Home Loan Without a Down Payment?
Yes, you can get a home loan without a down payment in the United States if you qualify for an eligible mortgage program. VA and USDA loans are the main options, while down payment assistance may help other buyers cover the required contribution for an eligible mortgage.
Before applying, compare loan programs, confirm your eligibility, and calculate the full cost of buying and maintaining the property. A zero-down mortgage can reduce the initial financial barrier to homeownership, but the monthly payment and other expenses must still fit your budget.
Are you planning to buy a home without a down payment? Share your questions or homebuying experiences in the comments, and stay updated on more U.S. mortgage tips.