Yes, but only through specific loan programs designed for zero down
You can buy a home with no down payment, but only through three federal loan programs: VA loans (for military members and veterans), USDA loans (for rural properties), and FHA loans with a 3.5% down payment minimum—which is not zero, but close enough that some lenders market it as "no money down" when they mean you can finance the 3.5% into the loan itself. Conventional loans from banks and mortgage companies require a down payment, usually 3% to 20%. If you have no savings, a VA or USDA loan is your actual path; an FHA loan still requires you to come up with 3.5% or find a lender willing to roll it into your mortgage.
The catch is that zero-down loans come with higher monthly payments because you are borrowing the full purchase price. You also pay mortgage insurance (called funding fees on VA loans and mortgage insurance premiums on USDA and FHA loans), which protects the lender if you default. These costs add up over 30 years, so a zero-down loan is not cheaper overall—it just moves the cost from your pocket now to your monthly bill later.
Key Takeaways
- VA loans and USDA loans allow zero down payment; FHA loans require 3.5% down but some lenders will finance that amount into your mortgage.
- All zero-down loans charge mortgage insurance or funding fees that increase your monthly payment for the life of the loan.
- VA loans are available only to military members, veterans, and some surviving spouses; USDA loans are limited to rural and suburban properties in designated areas.
- Your credit score, debt-to-income ratio, and income verification matter more on zero-down loans because the lender has no down payment cushion if you default.
- Closing costs (typically 2% to 5% of the purchase price) are not covered by zero-down programs and must come from your own funds or be negotiated into the seller's contribution.
VA loans: zero down for may be able to access military and veterans
A VA loan is backed by the Department of Veterans Affairs and requires no down payment if you have a Certificate of may be able to access (COE). You must be an active-duty service member, veteran, or surviving spouse of a service member who died in service or from a service-connected disability. The VA does not lend the money itself; instead, it guarantees a portion of the loan to a private lender (a bank, credit union, or mortgage company), which means the lender takes less risk and can offer better terms.
VA loans charge a funding fee instead of mortgage insurance. This fee is typically 2.3% of the loan amount for first-time users with no down payment, though it varies based on your military status and whether you have used a VA loan before. You can roll this fee into the loan, so you do not pay it upfront. The funding fee is a one-time cost, not a monthly payment like mortgage insurance on other loan types.
To apply, you need your COE (available through the VA website or your lender), a valid ID, proof of income, and a credit score of at least 580, though most lenders prefer 620 or higher. The VA does not set a minimum credit score, but individual lenders do. Your debt-to-income ratio (total monthly debt divided by gross monthly income) must usually be below 41%, though some lenders go up to 50% if other factors are strong.
USDA loans: zero down for rural and suburban homes
A USDA loan is backed by the U.S. Department of Agriculture and requires no down payment if the property is in a designated rural or suburban area. The USDA maintains a map showing which counties and zip codes may have access to; most rural counties may have access to, but some suburban areas near cities do not. You can check your address on the USDA website before you start house hunting.
USDA loans charge a mortgage insurance premium (MIP) instead of a down payment. The upfront MIP is 1% of the loan amount and is rolled into your mortgage. You also pay an annual MIP of 0.35% to 0.55% (depending on your loan amount and down payment, if any) for the life of the loan, added to your monthly payment. This ongoing cost is higher than VA funding fees but lower than FHA mortgage insurance.
Income limits apply: your household income cannot exceed 115% of the area median income for your county. A single person earning $65,000 might may have access to in a rural county but not in a suburban area near a major city. You need a credit score of at least 580, though 640 or higher is preferred by most lenders. Debt-to-income ratio must be below 41% for most lenders, though some allow up to 43%.
FHA loans: 3.5% down, financed into the mortgage
An FHA loan requires a minimum 3.5% down payment, which is not zero but is the lowest down payment available through a federal program. The key difference from conventional loans is that you can finance this 3.5% into your mortgage instead of paying it upfront. If you are buying a $300,000 home, you need $10,500 down; if you do not have it, some lenders will add it to your loan balance, so you borrow $310,500 instead.
FHA loans charge mortgage insurance premiums (MIP) because the down payment is so small. The upfront MIP is 1.75% of the loan amount, rolled into your mortgage. You also pay an annual MIP of 0.55% to 0.80% (depending on your loan amount and down payment) for the life of the loan if your down payment is less than 10%. If you put down 10% or more, the annual MIP drops off after 11 years.
Credit score requirements are lower than conventional loans: FHA accepts scores as low as 500, though 580 is more common. Debt-to-income ratio must be below 43% for most lenders. You must have a valid Social Security number and be a U.S. citizen or permanent resident. The property must be your primary residence and must meet FHA property standards (no major structural damage, working utilities, safe roof).
How closing costs change the zero-down equation
Closing costs (title search, appraisal, lender fees, title insurance, property taxes, homeowners insurance) typically run 2% to 5% of the purchase price. On a $300,000 home, that is $6,000 to $15,000. Zero-down loan programs do not cover closing costs, so you must pay them from your own funds or negotiate with the seller to cover them.
Some sellers will agree to pay part or all of your closing costs as part of the sale agreement, especially in a buyer's market. This is called a seller concession. VA loans allow sellers to pay up to 4% of the purchase price toward closing costs; USDA loans allow up to 6%; FHA loans allow up to 6%. If the seller pays more than the limit, you must cover the difference or the deal falls through.
If you cannot negotiate closing costs and do not have savings, you may not be able to close on a zero-down loan. Some lenders offer "no closing cost" loans, but this means they roll the costs into your interest rate or loan balance, so you pay them over time with interest. This is not free; it just delays the payment.
Credit score and debt-to-income requirements are stricter
Lenders are more cautious with zero-down loans because they have no equity cushion if you default. If you put down 20% and stop paying, the lender can foreclose and still recover most of their money by selling the home. If you put down zero and stop paying, the lender loses money immediately. This means lenders scrutinize your credit history and income more carefully.
A credit score of 620 or higher is standard for VA and USDA loans; FHA accepts 580 or higher. Your score reflects your payment history over the past two years. Recent late payments (within the last 12 months) are a red flag, even if your overall score is acceptable. Lenders also look at the reason for any past defaults: a one-time hardship is viewed differently than a pattern of missed payments.
Debt-to-income ratio (DTI) is the sum of all your monthly debt payments (car loans, credit cards, student loans, child support) divided by your gross monthly income. Most lenders cap DTI at 41% to 43% for zero-down loans. If you earn $5,000 per month and have $2,000 in existing debt, your DTI is 40%, leaving room for a mortgage payment of about $50 per month—which is not realistic. You may need to pay down existing debt before you can may have access to.
Comparing the three programs side by side
| Loan Type | Down Payment | Insurance/Fee | Credit Score | Who Qualifies |
|---|---|---|---|---|
| VA Loan | 0% | 2.3% funding fee (one-time) | 580+ | Military, veterans, surviving spouses |
| USDA Loan | 0% | 1% upfront + 0.35–0.55% annual MIP | 580+ | Rural/suburban property, income limits apply |
| FHA Loan | 3.5% (can be financed) | 1.75% upfront + 0.55–0.80% annual MIP | 500+ | Primary residence, U.S. citizen or permanent resident |
What happens if you do not may have access to for zero-down programs
If you are not may be able to access for VA, USDA, or FHA loans, conventional loans require a down payment of at least 3% to 5%, and most lenders prefer 10% or more. If you have no savings, you have a few options: save for a down payment over time, ask family members for a gift (which must be documented and cannot be a loan), or look for down payment assistance programs run by nonprofits or local housing authorities in your area.
Down payment assistance programs vary by location and often have income limits, credit score requirements, and restrictions on the property type or location. Some programs are forgivable loans (you do not have to repay them if you stay in the home for a set period); others are grants (assistance programs). Search your city or county housing authority website or call 211 to find programs near you.
Another option is to delay buying until you can save a down payment. This gives you time to improve your credit score, pay down existing debt, and increase your income—all of which make you a stronger borrower and may may have access to you for better interest rates.
Frequently Asked Questions
Can I use a VA loan if I was dishonorably discharged?
No. A dishonorable discharge makes you ineligible for VA benefits, including VA loans. Other discharge statuses (honorable, general, other than honorable) may may have access to depending on the circumstances. Contact the VA to verify your may be able to access based on your discharge papers.
What if my property is on the edge of a USDA-may be able to access area?
Check the USDA property may be able to access map on their website by entering your address. The map is precise to the property level, so a home one block outside the boundary does not may have access to. If your address is borderline, contact your lender to confirm before you make an offer.
Do I have to pay mortgage insurance forever on an FHA loan?
If your down payment is less than 10%, yes—mortgage insurance stays for the life of the loan. If you put down 10% or more, it drops off after 11 years of on-time payments. You can also refinance into a conventional loan once you have built enough equity to avoid mortgage insurance.
Can I get a zero-down loan if I am self-employed?
Yes, but lenders require more documentation. You will need two years of tax returns, profit-and-loss statements, and possibly a CPA letter verifying your income. Self-employment income is averaged over two years, so a recent business launch may not may have access to you for the full amount you could borrow as a W-2 employee.
What if I have student loans that are in deferment?
Lenders count deferred student loans toward your debt-to-income ratio, even if you are not currently making payments. They use a standard calculation (usually 0.5% to 1% of the total balance as a monthly payment) to estimate what you will owe. This can reduce the amount you can borrow, so paying down student loans before applying may help.