Yes, but only through specific loan programs that exist for this purpose
You can buy a home without putting down money upfront, but only if you meet the requirements of a loan program designed to allow it. These programs exist because lenders have found ways to reduce their risk without requiring a down payment from you. The most common are VA loans (for military members and veterans), USDA loans (for rural properties), and some conventional loans with mortgage insurance. Each has different rules about who qualifies, what property types work, and what you pay in return for the zero down payment.
The trade-off is real: when you put down no money, the lender takes on more risk, and you pay for that through a higher interest rate, mandatory mortgage insurance, or both. You also need to prove you can actually afford the monthly payment—lenders are stricter about income and debt when there is no down payment cushion.
Key Takeaways
- VA loans and USDA loans are the most straightforward zero-down options, but VA loans require military service and USDA loans require a property in a designated rural area.
- Conventional loans can go to zero down, but you will pay private mortgage insurance (PMI) monthly until you build equity, which adds hundreds of dollars per month to your payment.
- Lenders require a higher credit score and lower debt-to-income ratio when you have no down payment, because they cannot rely on your equity stake to protect them.
- You still need to cover closing costs, which typically run 2 to 5 percent of the home price and cannot be rolled into a zero-down loan in most cases.
VA loans: zero down if you have military service
A VA loan is may provide by the Department of Veterans Affairs and allows may be able to access service members, veterans, and some surviving spouses to buy a home with no down payment and no mortgage insurance. The VA does not lend the money—a bank or mortgage lender does—but the VA guarantees a portion of the loan, which means the lender takes less risk and can afford to skip the down payment requirement.
To use a VA loan, you need a Certificate of may be able to access (COE), which you can request through the VA website, by mail, or through your lender. The process takes a few days to a few weeks. You must also meet the lender's credit and income requirements, which vary by lender but are often less strict than conventional loans because of the VA may provide.
VA loans have a funding fee (a one-time charge paid at closing, usually 1.4 to 3.6 percent of the loan amount) unless you are receiving disability compensation from the VA. This fee can be rolled into the loan, so you do not need to pay it upfront. The interest rate on a VA loan is typically lower than a conventional loan, which offsets some of the cost.
USDA loans: zero down for rural and suburban properties
A USDA loan is backed by the U.S. Department of Agriculture and allows you to buy a home in a designated rural or suburban area with no down payment. The property must be in a USDA-may be able to access area, which you can check on the USDA website by address. Many suburban areas may have access to, not just farms.
USDA loans require you to be a U.S. citizen or permanent resident and to have a household income at or below the limit for your county (limits vary widely by location). You also need a credit score of at least 580 in most cases, though some lenders require 620 or higher. The USDA does not set a minimum credit score, so it depends on the lender you choose.
Like VA loans, USDA loans include a may provide fee (typically 1 percent of the loan amount) that can be rolled into the loan. You will also pay an annual mortgage insurance premium for the life of the loan, which is higher than conventional PMI but protects the lender if you default. The total cost is still often lower than a conventional loan with a down payment because the interest rate is competitive.
Conventional loans with mortgage insurance
A conventional loan can go to zero down, but you will pay private mortgage insurance (PMI) every month. PMI protects the lender if you stop paying; it does not protect you. The cost varies by lender, credit score, and loan amount, but typically runs 0.5 to 1.5 percent of the loan amount per year, paid monthly.
On a $300,000 loan, PMI might cost $125 to $375 per month. That money goes to the insurance company, not toward your home equity. You can remove PMI once you have paid down the loan to 80 percent of the home's original value (or 20 percent equity), but that takes years on a zero-down loan. Some lenders allow you to remove PMI sooner if your home value rises and you get a new appraisal, but this is not may provide.
Conventional loans with zero down require a credit score of at least 620, often higher (660 to 680 is more common). Your debt-to-income ratio must be low—usually 43 percent or less—because the lender has no down payment to fall back on. You will also need to document your income, employment history, and savings.
Closing costs you cannot avoid
Even with zero down, you must pay closing costs at the time you close on the home. These typically include appraisal fees, title insurance, attorney fees, recording fees, and lender fees. The total usually runs 2 to 5 percent of the home price, or $6,000 to $15,000 on a $300,000 home.
With a VA or USDA loan, the seller can pay some or all of your closing costs as part of the negotiation—this is called a seller concession. With a conventional loan, seller concessions are allowed but capped at a percentage of the home price (usually 3 to 6 percent). You can also ask the lender to roll closing costs into the loan, but this increases your total debt and monthly payment.
Some lenders offer grants or down payment assistance programs that can cover closing costs, but these are not common and usually have income limits. Ask your lender whether they offer any programs before you assume you must pay out of pocket.
What lenders look for when there is no down payment
Without a down payment, lenders focus heavily on your ability to repay. They will ask for recent pay stubs, tax returns (usually two years), and bank statements showing you have reserves—money left over after closing. Some lenders require three to six months of mortgage payments in reserves; others require more.
Your credit score matters more when you have no down payment. A score of 620 is the minimum for most conventional loans, but 660 or higher will get you better rates. For VA and USDA loans, credit score requirements are often lower, but a higher score still helps you negotiate better terms.
Your debt-to-income ratio (total monthly debt divided by gross monthly income) must be low. Most lenders cap this at 43 to 50 percent, depending on the loan type. If you have car loans, credit card debt, or student loans, these count against you. Paying down debt before you apply can improve your chances.
Comparing the three paths
| Loan Type | Down Payment | Who Qualifies | Monthly Insurance Cost | Interest Rate |
|---|---|---|---|---|
| VA Loan | 0% | Military members, veterans, surviving spouses | None (funding fee at closing) | Typically lowest |
| USDA Loan | 0% | Rural/suburban property, income limit, U.S. citizen | Annual mortgage insurance (0.35–0.80% yearly) | Competitive |
| Conventional + PMI | 0% | Credit score 620+, low debt-to-income ratio | PMI (0.5–1.5% yearly) | Higher than VA/USDA |
Frequently Asked Questions
Do I have to use a zero-down loan if I have some money saved?
No. If you have saved a down payment, you can put it down and reduce your loan amount, which lowers your monthly payment and removes or reduces mortgage insurance. Putting down even 5 or 10 percent saves money over time. But if you want to keep your savings for emergencies or other uses, a zero-down loan lets you do that.
Can I get a zero-down loan if I have bad credit?
VA and USDA loans are more forgiving of lower credit scores than conventional loans. VA loans do not set a minimum credit score, though most lenders require 580 or higher. USDA loans typically require 580 to 620. Conventional loans usually require 620 minimum. If your score is below 620, a VA or USDA loan is your best option.
What happens if I cannot pay closing costs even with a seller concession?
Some nonprofits and local housing programs offer down payment and closing cost assistance, though these are not widely available and have income limits. Ask your lender or a local housing authority whether programs exist in your area. You can also ask the seller to cover more of closing costs if the market allows it, though this depends on the negotiation.
Can I remove PMI from a conventional zero-down loan?
Yes, once you have paid the loan down to 80 percent of the home's original purchase price (20 percent equity). On a zero-down loan, this takes many years. You can also request removal if your home value rises and you get a new appraisal, but lenders are not required to agree. Some lenders allow removal at 75 percent LTV (loan-to-value ratio) if you meet other conditions.
Do I need a job to get a zero-down loan?
Yes. Lenders require proof of stable income and employment history, usually two years of tax returns and recent pay stubs. Self-employed borrowers need two years of tax returns and may need additional documentation. Retired borrowers can use Social Security or pension income. Unemployment or a recent job change can make approval harder but not impossible.