Yes, but only through specific loan programs and with strict requirements

You can buy a house with no down payment, but it is not the default path. Most lenders require between 3% and 20% down. The programs that allow zero down are VA loans (for military members and veterans), USDA loans (for rural properties), and some FHA loans paired with down payment assistance. Each has different rules about who qualifies, what property types work, and what you pay in return.

The trade-off for putting nothing down is almost always higher monthly costs. You will pay mortgage insurance, higher interest rates, or both. A lender is taking on more risk, and you will cover that risk through your payment. Understanding what each program costs and demands is the only way to know if zero down actually saves you money or just delays the cost.

Key Takeaways

  • VA loans and USDA loans are the only programs that routinely allow zero down payment with no mortgage insurance requirement.
  • FHA loans allow as little as 3.5% down, not zero, but paired with down payment assistance programs they can reach zero out of pocket.
  • Zero down means higher monthly payments through mortgage insurance, higher interest rates, or both—not lower total cost.
  • Your credit score, debt-to-income ratio, and income stability matter more when you have no down payment, because the lender has no equity cushion.
  • The property itself must meet the lender's standards; a zero-down loan on a house that fails inspection or appraisal will not close.

VA loans: zero down for military and veterans

If you are a current or former member of the military, a VA loan is the clearest path to zero down. The Department of Veterans Affairs guarantees a portion of the loan to the lender, which removes the lender's need for a down payment or mortgage insurance. You pay a one-time funding fee (usually 1.4% to 3.6% of the loan amount, depending on your service history and whether you have used a VA loan before), but this can be rolled into the loan itself so you do not pay it upfront.

To use a VA loan, you need a Certificate of may be able to access from the VA, which you request through the VA website 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, but these are often less strict than conventional loans because the VA may provide backs the lender. The interest rate on a VA loan is typically lower than a conventional loan at the same credit score.

VA loans work on any property type—single-family homes, condos, new construction, or existing homes. There is no geographic limit. The only restriction is that you cannot use a VA loan on an investment property or a second home; it must be your primary residence.

USDA loans: zero down for rural and suburban properties

USDA loans are backed by the U.S. Department of Agriculture and allow zero down payment on properties in rural and some suburban areas. The USDA maintains a map of may be able to access counties and zip codes; you can check whether your target property qualifies on the USDA website before you start shopping. The program is designed to help people buy homes outside major cities, though "rural" includes many towns and suburbs that do not feel remote.

Like VA loans, USDA loans do not require mortgage insurance. Instead, you pay a one-time may provide fee (typically 1% to 2% of the loan amount) and an annual fee (0.35% of the remaining loan balance each year). Both can be rolled into the loan. Your income must fall below a threshold set by county—this varies widely but is often around $80,000 to $110,000 for a family of four, depending on location. You also need a credit score of at least 580, though 640 or higher is more common for approval.

USDA loans are slower to close than conventional or VA loans because the USDA reviews the application after the lender submits it. Plan for 45 to 60 days from offer to closing, compared to 30 to 45 days for other loan types.

FHA loans with down payment assistance: reaching zero out of pocket

FHA loans themselves require a minimum 3.5% down payment. However, many state and local down payment assistance programs will cover that 3.5% for you, bringing your out-of-pocket cost to zero. These programs are run by housing authorities, nonprofits, and sometimes lenders themselves. They vary by location—some states have robust programs, others have very few.

The catch is that down payment assistance often comes as a second loan or a grant with strings attached. A second loan means you have two monthly payments (though the second is often interest-free). A grant may require you to stay in the home for a set number of years or repay it if you sell within that window. You need to understand the terms before you commit.

To find down payment assistance in your area, start with your state housing finance agency (search "[your state] housing finance agency") or call 211 to be referred to local programs. Your lender may also know which programs work with their FHA loans. FHA loans require mortgage insurance for the life of the loan if your down payment is less than 10%, which adds to your monthly cost.

What happens to your monthly payment when you put nothing down

With no down payment, your lender is financing 100% of the purchase price. That larger loan amount means a larger monthly payment. On top of that, most zero-down loans carry mortgage insurance or higher interest rates—sometimes both.

On a $300,000 home with 20% down ($60,000), your loan is $240,000. With 0% down, your loan is $300,000. That is $60,000 more to repay over 30 years, which adds roughly $250 to $300 per month before insurance or rate differences. Then add mortgage insurance (FHA loans) or an annual fee (USDA loans), and your payment climbs further. VA loans avoid mortgage insurance, but the funding fee is built in, and interest rates may be slightly higher than the absolute best conventional rates.

Use a mortgage calculator to compare the total cost of a zero-down loan versus putting down 5% or 10% if you have any savings. Often, even a small down payment reduces your monthly cost enough to matter over 30 years.

Credit score and debt requirements are stricter with zero down

When you have no equity in the home from day one, the lender has nothing to fall back on if you stop paying. This means your credit score, income, and existing debt matter more. Most lenders require a credit score of at least 620 for FHA loans, 640 for USDA loans, and 620 for VA loans (though VA loans are often approved with lower scores if the rest of your profile is strong).

Your debt-to-income ratio—the percentage of your monthly income that goes to debt payments—is also scrutinized more closely. Most lenders want this ratio below 43% to 50%. With a zero-down loan, you are starting with a larger monthly payment, which can push you over that threshold. If you have car loans, credit card balances, or student loans, paying those down before you apply for a zero-down mortgage will improve your chances.

Lenders will also verify your income more thoroughly. They want to see two years of tax returns, recent pay stubs, and often a letter from your employer confirming your job is stable. Self-employed borrowers face extra scrutiny and may need to provide business tax returns and profit-and-loss statements.

The property must pass inspection and appraisal

A zero-down loan is riskier for the lender, so the property itself must meet higher standards. The home must pass a full inspection and appraise at or above the purchase price. If the appraisal comes in low, the lender will not fund the loan unless you renegotiate the price down or bring cash to cover the gap.

This is a real constraint. In a competitive market, a seller may not accept an offer contingent on appraisal if they have other offers without that contingency. You may also face limits on the age or condition of the home. Some lenders will not finance homes built before 1950, or homes with major systems (roof, foundation, electrical) that are near the end of their lifespan.

Get a pre-approval letter before you make an offer, and ask the lender specifically what property types and conditions they will finance. This saves you from falling in love with a house that the lender will not touch.

Frequently Asked Questions

Can I use a VA loan and a USDA loan at the same time?

No. You choose one program. However, if you are may be able to access for both, you can use a VA loan on one property and a USDA loan on another at different times. Some borrowers use a VA loan for their first home and a USDA loan for a second home later, or vice versa.

What if I have bad credit but want zero down?

VA loans are your best option if you may have access to by service. The VA may provide means lenders are more flexible on credit scores. USDA and FHA loans typically require a minimum score of 580 to 640. If your score is lower, work on paying down debt and disputing errors on your credit report for 6 to 12 months before you apply.

Do I have to use the lender my real estate agent recommends?

No. Shop around with at least three lenders, especially for zero-down loans. Rates, fees, and approval timelines vary. A lender that is fast with conventional loans may be slow with USDA loans, or vice versa. Ask each lender how many zero-down loans they close per month and how long their average timeline is.

What if the appraisal comes in lower than the purchase price?

You have three options: renegotiate the price down with the seller, bring cash to cover the gap, or walk away. The lender will not fund a loan for more than the appraised value. With zero down, you have no cushion, so this is a real risk. Include an appraisal contingency in your offer so you can back out if this happens.

Can I refinance out of a zero-down loan later?

Yes. Once you have built equity through payments or a rise in home value, you can refinance to a conventional loan and potentially lower your rate or remove mortgage insurance. This usually takes 6 to 12 months of on-time payments and a home value that has held steady or risen.