Yes, but only through specific government-backed programs, and they come with real limits
You can get a mortgage without putting down money upfront, but you cannot walk into a conventional lender and ask for it. Zero-down mortgages exist only through three federal programs: VA loans (for military), USDA loans (for rural properties), and FHA loans (which require 3.5% down, not zero, but it's the closest mainstream option). Private lenders do not offer true zero-down mortgages anymore—that market closed after 2008.
The catch is that each program has strict rules about who qualifies, what property you can buy, and what you pay in return. A VA loan costs nothing down and charges no mortgage insurance. An FHA loan requires that 3.5% down payment but accepts lower credit scores. A USDA loan is free down and free mortgage insurance, but the property must be in a designated rural area and your income cannot exceed the limit for that county.
If none of these fit your situation, you have two other paths: a down payment assistance program (usually run by your state or city), or a personal loan to cover the down payment (which costs more and complicates your debt picture). Both are slower and less common than they sound.
Key Takeaways
- VA loans require zero down and no mortgage insurance, but only military members, veterans, and some surviving spouses may have access to.
- USDA loans require zero down and no mortgage insurance, but the property must be in a rural area and your income must fall below the county limit.
- FHA loans require 3.5% down (not zero) and mortgage insurance for the life of the loan, but accept credit scores as low as 500 in some cases.
- Down payment assistance programs exist in some states and cities, but they are not may provide, often have income caps, and can take months to process.
- Borrowing the down payment from a personal loan or family member creates additional debt that lenders will count against your borrowing power.
VA loans: zero down, no mortgage insurance, military only
A VA loan is issued by a private lender but may provide by the Department of Veterans Affairs. The may provide means the lender takes less risk, so they do not require a down payment or mortgage insurance—two major costs that other borrowers pay.
You may have access to if you are a current active-duty service member, a veteran with an honorable discharge, a National Guard or Reserve member who has served at least six years, or a surviving spouse of someone who died in service or from a service-connected disability. You will need a Certificate of may be able to access from the VA, which you can request online through VA.gov or through your lender.
The loan amount is limited by your county's conforming loan limit (the maximum the VA will may provide), which varies by location. In 2024, that limit is $766,550 in most counties, higher in expensive areas. You still need to may have access to based on income and credit, and the lender will run a full underwriting process—the VA may provide does not mean automatic approval.
One real advantage: you can use a VA loan more than once. If you sell a home you bought with a VA loan, your may be able to access resets and you can use it again on another property.
USDA loans: zero down, zero mortgage insurance, rural properties only
A USDA loan is backed by the U.S. Department of Agriculture and available only for homes in designated rural areas. The USDA defines "rural" broadly—it includes many suburbs and small towns, not just farms. You can check whether a specific address qualifies on the USDA's website by entering the property address.
Like a VA loan, a USDA loan requires zero down payment and charges no mortgage insurance. The trade-off is income: your household income cannot exceed 115% of the area median income for your county. In a rural county with a median income of $60,000, you would need to earn less than $69,000. The USDA publishes income limits by county each year, and they vary widely.
You also need a credit score of at least 580 to may have access to, though some lenders require 620 or higher. The application process is the same as a conventional mortgage—you will need proof of income, employment history, and a clean credit report. Approval typically takes 30 to 45 days.
USDA loans do charge an upfront may provide fee (around 2% of the loan amount) and an annual fee, but both are rolled into the loan balance, not paid out of pocket. This makes the true cost lower than an FHA loan over time, even though the monthly payment is slightly higher.
FHA loans: 3.5% down, mortgage insurance for life, lower credit requirements
An FHA loan is not truly zero-down, but it is the closest option for borrowers who do not may have access to for VA or USDA loans. The FHA (Federal Housing Administration) insures mortgages issued by private lenders, which means the lender is protected if you default. In exchange, you pay a down payment of 3.5% and mortgage insurance for the entire life of the loan.
The 3.5% down payment is the key difference from VA and USDA loans. On a $300,000 home, that is $10,500 out of pocket. You can borrow this amount from a family member or a personal loan, but doing so affects how much total debt the lender will allow you to carry.
FHA loans accept credit scores as low as 500 (though 580 is more common), which opens the door for borrowers with damaged credit. The income limits are higher than USDA loans—there is no federal cap, though individual lenders may set their own. You will need to show two years of employment history and explain any gaps or job changes.
The mortgage insurance is the real cost. You pay an upfront mortgage insurance premium (1.75% of the loan amount, rolled into the loan) and then an annual premium (0.55% to 0.80% of the loan balance per year, depending on your down payment and loan term). Unlike conventional mortgages, FHA mortgage insurance does not go away when you reach 20% equity—it stays for the life of the loan unless you refinance into a conventional mortgage later.
Down payment assistance programs: state and local, but not may provide
Some states and cities run down payment assistance programs that give or lend money to first-time homebuyers. These are not federal programs—they vary by location, and many have run out of funding or closed their applications.
Common sources include your state housing finance agency (search "[your state] housing finance agency"), your city or county housing department, and nonprofits like NeighborWorks or the National Foundation for Credit Counseling. Some programs are grants (money you do not repay), others are forgivable loans (you repay only if you sell or refinance within a set time), and others are straight loans (you repay like a mortgage).
Income limits are common—many programs target households earning 80% or less of the area median income. You usually must be a first-time homebuyer (defined as not owning a home in the past three years), and you often must complete a homebuyer education course before you apply.
The process is slow. Applications can take two to four months to process, and funding is not may provide—many programs have waiting lists or close when money runs out. Start by calling your local housing authority or dialing 211 (a free referral service) to ask what programs exist in your area and whether they are currently open.
Borrowing the down payment: personal loans and family money
If you do not may have access to for VA, USDA, or FHA loans, and no down payment assistance program is open in your area, you can borrow the down payment from a personal loan or a family member.
A personal loan for a down payment works, but it costs you. The interest rate on a personal loan is higher than a mortgage (usually 8% to 12%), and the monthly payment counts as debt when the mortgage lender calculates how much you can borrow. If you need a $20,000 down payment and take a five-year personal loan, that payment might reduce the mortgage amount you may have access to for by $50,000 or more. You end up paying more interest overall and borrowing less for the house itself.
A family loan avoids the interest, but it creates complications. The mortgage lender will ask whether the down payment is a gift or a loan. If it is a gift, the family member must sign a gift letter stating they do not expect repayment. If it is a loan, you must document the terms (interest rate, repayment schedule) and the lender will count it as debt on your application. Either way, the money must be in your bank account for at least two months before you apply—lenders want to see that you saved it, not borrowed it at the last minute.
What happens to your monthly payment without a down payment
When you put down zero or very little money, your monthly mortgage payment is higher because you are borrowing more. On a $300,000 home with a 7% interest rate and a 30-year term, the difference is stark: a 20% down payment ($60,000) means a monthly payment of about $1,260; zero down means about $1,995 per month—$735 more every month for 30 years.
That higher payment also affects how much you can borrow. Lenders use a debt-to-income ratio: your total monthly debt (mortgage, car loans, credit cards, student loans) cannot exceed 43% to 50% of your gross monthly income. A higher mortgage payment shrinks the amount you may have access to for.
Mortgage insurance (on FHA loans) adds another $150 to $300 per month on top of the base payment. VA and USDA loans avoid this, which is why they are more valuable if you may have access to.
Frequently Asked Questions
Can I get a zero-down mortgage from a bank or credit union?
No. Private lenders stopped offering zero-down mortgages after 2008. The only zero-down options are VA loans, USDA loans, and down payment assistance programs. FHA loans require 3.5% down as the minimum.
What if I have bad credit but do not may have access to for FHA?
FHA loans accept scores as low as 500, which is the most forgiving mainstream option. If your score is below 500, you may need to wait and rebuild credit before applying, or look for a down payment assistance program that has its own credit requirements (which vary by program).
Can I use a gift from a family member as my down payment?
Yes, but the family member must sign a gift letter stating they do not expect repayment, and the money must be in your bank account for at least two months before you apply. The lender will verify the source of the funds.
Do I have to pay back a down payment assistance grant?
It depends on the program. Some grants are assistance programs you never repay. Others are forgivable loans—you repay only if you sell or refinance within a set period (often 5 to 10 years). Ask the program administrator which type they offer before you apply.
Will a zero-down mortgage cost more over time?
Yes. You borrow more money, so you pay more interest over 30 years. VA and USDA loans save you the most because they avoid mortgage insurance. FHA loans cost more because of the insurance premium, but still less than a personal loan used for a down payment.