Yes, but only through specific loan programs and with higher costs
You can get a mortgage with zero down payment, but you will not find it at every lender and the terms will cost you more. The main routes are VA loans (for military members and veterans), USDA loans (for rural properties), and conventional loans with lender-paid mortgage insurance. FHA loans require 3.5% down, not zero, so they do not fit this category. Each program has different income limits, property location rules, and credit score minimums.
The catch: when you put down no money, the lender covers 100% of the purchase price and takes on all the risk if you stop paying. They offset that risk by charging you higher interest rates, requiring mortgage insurance, or both. Over a 30-year loan, this adds tens of thousands of dollars to what you will pay compared to a 20% down payment.
Key Takeaways
- VA loans and USDA loans are the only true zero-down options; conventional loans with lender-paid insurance exist but come with higher interest rates.
- VA loans require military service or veteran status; USDA loans require the property to be in a designated rural area and your income to fall below the county limit.
- With zero down, you will pay mortgage insurance, a higher interest rate, or both, adding $200 to $400+ per month to your payment depending on the loan type.
- Your credit score, debt-to-income ratio, and employment history matter more when you have no down payment to show the lender you are serious.
VA loans: zero down for military and veterans
If you served on active duty, in the National Guard, or in the Reserves, you may be may be able to access for a VA loan through the Department of Veterans Affairs. These loans require zero down payment and no mortgage insurance. The lender is protected by a VA may provide—a promise from the government to cover part of the loss if you default.
To use a VA loan, you need a Certificate of may be able to access from the VA, which you can request online at VA.gov or through your lender. The process takes a few days to a few weeks. You will also need a credit score of at least 580 to 620 (varies by lender), a debt-to-income ratio below 41%, and a valid purchase contract on the property.
VA loans do charge a funding fee—a one-time cost rolled into your loan amount. For a first-time user with no down payment, this is typically 2.3% of the loan amount. If you are disabled or a surviving spouse, you may be exempt. The interest rate on a VA loan is often lower than conventional rates, which can offset the funding fee over time.
USDA loans: zero down for rural properties
The USDA Rural Development program offers zero-down mortgages for properties in designated rural areas. You do not have to live on a farm or work in agriculture; the program is open to anyone buying a home in a may have access to location. The USDA website has a map tool where you can enter an address and see if it qualifies.
Income limits vary by county and family size but typically range from $55,000 to $90,000 for a family of four. You must have a credit score of at least 580 and a debt-to-income ratio below 41%. Like VA loans, USDA loans charge a may provide fee (around 1% to 3.5% of the loan amount, depending on your down payment—which is zero in this case), rolled into the loan.
USDA loans also require annual mortgage insurance, paid monthly as part of your payment. This typically costs 0.35% to 0.8% of the loan balance per year. Combined with the may provide fee, USDA loans cost more than a conventional 20% down mortgage but less than FHA loans in many cases.
Conventional loans with lender-paid mortgage insurance
Some conventional lenders will finance 100% of the purchase price if you agree to a higher interest rate. Instead of you paying mortgage insurance out of pocket, the lender builds the insurance cost into your rate. This is called lender-paid mortgage insurance (LPMI).
The trade-off: your interest rate will be 0.5% to 1% higher than a borrower with 20% down. On a $300,000 loan at 7% instead of 6%, you pay roughly $150 more per month. Over 30 years, that is $54,000 in extra interest. You will also need a credit score of 700 or higher and a debt-to-income ratio below 43%, which are stricter than VA or USDA requirements.
LPMI does not go away after you build equity, unlike traditional mortgage insurance. You are locked into the higher rate for the life of the loan unless you refinance. This makes LPMI most useful if you plan to sell or refinance within 5 to 10 years, before the rate difference costs you more than a down payment would have.
What lenders look for when you have no down payment
Without a down payment, lenders cannot see that you have saved money or have skin in the game. They shift focus to your income stability, credit history, and debt load. Most lenders require at least two years of employment history in the same field, though job changes within the same industry are usually acceptable.
Your credit score carries more weight. A score of 620 to 640 may get you approved for a VA or USDA loan, but you will pay a higher rate. A score of 700 or above opens conventional LPMI options and better rates across all programs. Lenders also pull your full credit report and may ask about late payments, collections, or high credit card balances.
Debt-to-income ratio—the percentage of your gross monthly income that goes to debt payments—is capped at 41% to 50% depending on the program. If you have car loans, student loans, or credit card payments, these count against you. Paying down debt before applying can make the difference between approval and denial.
Comparing the real cost of zero-down mortgages
On a $300,000 home, a 20% down payment is $60,000. If you do not have that, a zero-down loan lets you buy now. But the monthly cost difference is real. A VA loan might cost $150 to $200 more per month than a 20% down conventional loan. A USDA loan might cost $200 to $300 more. Conventional LPMI could cost $150 to $250 more. Over 30 years, these differences add up to $54,000 to $108,000 in extra payments.
The table below shows how each loan type stacks up. Notice that VA loans have the lowest ongoing costs because there is no mortgage insurance and the interest rate is often competitive. USDA loans cost more monthly because of annual mortgage insurance. Conventional LPMI locks you into a permanently higher rate unless you refinance.
| Loan Type | Down Payment | Mortgage Insurance | Funding/may provide Fee | Interest Rate Impact |
|---|---|---|---|---|
| VA Loan | 0% | None | 2.3% (first-time) | Often 0.25% lower than conventional |
| USDA Loan | 0% | 0.35%–0.8% annually | 1%–3.5% | Comparable to conventional |
| Conventional LPMI | 0% | Built into rate | None | 0.5%–1% higher |
| 20% Down (baseline) | 20% | None | None | Baseline |
When zero-down makes sense and when it does not
Zero-down mortgages make sense if you are a veteran with a VA loan (the terms are genuinely competitive), if you are buying in a rural area and may have access to for USDA, or if you are certain you will sell or refinance within 5 to 10 years. They also make sense if waiting to save a down payment means missing a home purchase that matters to you—a job relocation, a growing family, or a market window.
Zero-down does not make sense if you can save 10% to 15% down within a year or two. The interest rate savings alone will outweigh the cost of waiting. It also does not make sense if your credit score is below 620 or your debt-to-income ratio is above 43%, because you will either be denied or offered a rate so high that the math breaks down.
Run the numbers with a lender before deciding. Ask for a loan estimate that shows the total interest paid over 30 years, the monthly payment, and all fees. Compare that to what you would pay with a 10% or 15% down payment. The difference will tell you whether zero-down is worth the cost.
Frequently Asked Questions
Can I get a zero-down mortgage if I have bad credit?
Most zero-down programs require a credit score of at least 580 to 620. If your score is below 580, you will likely be denied. If it is between 580 and 620, you may be approved but at a higher interest rate. Paying down credit card balances and fixing errors on your credit report can raise your score by 20 to 50 points in a few months.
Do I have to pay mortgage insurance forever on a zero-down loan?
It depends on the loan type. VA loans have no mortgage insurance. USDA loans charge annual mortgage insurance for the life of the loan. Conventional LPMI loans lock in a higher rate permanently unless you refinance. If you refinance after building 20% equity, you can drop the insurance and get a lower rate.
What if I am not a veteran and do not live in a rural area?
Your main option is a conventional loan with lender-paid mortgage insurance, which requires a credit score of 700 or higher and a debt-to-income ratio below 43%. If you do not meet those thresholds, you will need to save at least 3% to 5% for an FHA or conventional down payment.
Can I use a gift for a down payment instead of going zero-down?
Yes. If a family member gives you money for a down payment, most lenders will accept it as long as you provide a gift letter stating the money does not have to be repaid. A 5% or 10% gift-funded down payment often costs less over time than a zero-down loan, because you avoid the higher rates or mortgage insurance.
How long does it take to get approved for a zero-down mortgage?
Most lenders take 30 to 45 days from application to closing. VA loans may take longer if you do not yet have your Certificate of may be able to access. USDA loans can take 45 to 60 days because the USDA itself must review and approve the property. Start the process as soon as you have a purchase contract.