First Time Home Buyer Programs With No Money Down

Q: Does Loan Factory offer zero-down programs?

Yes. Loan Factory offers VA, USDA, and many assistance programs through its network of 240+ lenders.

Q: Are zero-down programs harder to qualify for?

It depends. VA loans have flexible requirements. USDA loans require specific income and property location guidelines.

Q: Do zero-down loans mean zero closing costs?

No. Closing costs still apply, but some may be covered through credits or assistance programs.

Q: What if I don’t qualify for VA or USDA?

You may still reduce upfront costs through state assistance programs, grants, or lender credits.

Q: Are there really first-time home buyer loans with no money down?

Yes. VA and USDA offer qualifying buyers a true 0% down payment option.

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First Time Home Buyer Programs With No Money Down

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1. Do No-Money-Down Programs Really Exist?

2. Best First Time Home Buyer Programs With No Money Down

3. Other Paths to “No Money Down” for First-Time Buyers

4. Important Things to Know Before Applying for Zero-Down Programs

5. Why Choose Loan Factory for First-Time Buyer Programs

6. FAQ: First Time Home Buyer Programs With No Money Down

Many first-time homebuyers search for first time home buyer programs with no money down because saving for a down payment can be one of the biggest challenges in the homebuying process. The good news: depending on your eligibility, there are programs that may allow you to buy a home with little to no down payment.

This guide breaks down how these programs work, who qualifies, and what you should know before applying.

Do No-Money-Down Programs Really Exist?

Yes — but they’re not available to everyone. In the U.S., there are two major types of zero-down home loans, plus several assistance programs that may help cover down payments or closing costs.

Here are the real options.

Best First Time Home Buyer Programs With No Money Down

1. VA Loan (0% Down – For Eligible Military & Veterans)

VA loans are one of the most powerful home loan programs available.

Highlights:

0% down payment for eligible borrowers
No monthly mortgage insurance
Flexible credit and DTI options
Competitive interest rates

Who qualifies:

Veterans
Active-duty service members
National Guard / Reservists (with service requirements)
Some surviving spouses

If you’re eligible, this is often the best zero-down mortgage option in America.

2. USDA Loan (0% Down – For Eligible Rural Areas)

USDA loans offer zero-down financing for properties in approved rural or suburban areas.

Highlights:

No down payment required
Competitive terms
Reduced mortgage insurance compared to FHA

Who qualifies:

Buyers purchasing in USDA-approved rural areas
Households within USDA income limits

Many areas just outside major cities still qualify.

Other Paths to “No Money Down” for First-Time Buyers

Even if you’re not eligible for VA or USDA, you still have options:

3. Down Payment Assistance (DPA) Programs

Many cities, counties, and states offer grants or forgivable loans to help first-time buyers cover down payments or closing costs.

Types of assistance may include:

Grants (don’t need to be repaid)
Forgivable loans
Deferred second mortgages
Closing cost assistance

Qualifications usually depend on:

Income
Credit score
Location
First-time buyer status

4. Lender Credits (Reduce Cash to Close)

Some lenders may offer credits toward closing costs depending on pricing and guidelines. This doesn’t reduce the down payment requirement, but it helps lower the amount of money you need upfront.

5. Seller Credits

In some cases, the seller can contribute toward:

Closing costs
Prepaid taxes
Insurance

This can reduce your out-of-pocket expenses.

Important Things to Know Before Applying for Zero-Down Programs

Even though first time home buyer programs with no money down sound simple, there are key factors to understand:

1. Credit Requirements Still Apply

Zero-down doesn’t mean “guaranteed approval.” You still need to meet program guidelines.

2. Properties Must Meet Program Rules

Especially for USDA and VA, the home must meet condition and location requirements.

3. You Still Need Money for Closing Costs

Even with 0% down, buyers typically need funds for:

Appraisal
Title fees
Insurance
Taxes

Some costs can be offset with assistance programs or credits.

4. Getting Pre-Approved Early Helps You Avoid Delays

A verified pre-approval makes your offer stronger and helps you understand exactly how much you can afford.

Why Choose Loan Factory for First-Time Buyer Programs

If you're exploring first time home buyer programs with no money down, Loan Factory gives you the tools, technology, and support to compare options clearly.