Yes, you may be able to buy a house with no down payment if you qualify for a true zero down mortgage program such as a VA loan or USDA loan. Some buyers may also reduce upfront cash by using approved assistance programs, seller credits, gift funds, or low down payment alternatives.
But here is the important part:
No down payment does not always mean no money needed.
Even if you qualify for a no down payment mortgage, you may still need funds for closing costs, prepaid taxes, homeowners insurance, escrow reserves, inspections, appraisal, and moving expenses.
Important note: This article is for informational purposes only and is not a commitment to lend. Loan approval, program eligibility, down payment requirements, rates, APR, credits, fees, seller credits, gift funds, and terms depend on credit, income, property eligibility, occupancy, underwriting, investor guidelines, and lender requirements.
Key Takeaways You may be able to buy a house with no down payment through VA loans or USDA loans if you and the property qualify. A no down payment loan can remove the traditional down payment, but it may not remove closing costs or prepaid expenses. If you cannot qualify for a zero down mortgage, you may still have low down payment options such as FHA, Conventional 3% down, HomeReady, Home Possible, or down payment assistance. The right path depends on your credit, income, military eligibility, property location, household income, monthly payment comfort, and cash-to-close strategy. Can I Buy a House With No Down Payment? Yes, you can buy a house with no down payment if you qualify for a loan program that allows zero down financing. The most common true no down payment options are VA loans for eligible military borrowers and USDA loans for eligible buyers purchasing in approved rural or suburban areas.
The Consumer Financial Protection Bureau explains that VA loans do not require a down payment for eligible servicemembers or family members, and USDA offers a no-down-payment mortgage program for eligible low- and moderate-income households in eligible rural areas.
This means the answer depends on your situation.
You may need to qualify based on:
Loan program eligibility Credit history Stable income Debt-to-income ratio Property location Primary residence occupancy Appraisal and property condition Ability to cover closing costs or use approved credits The real question is not only “Can I buy with no down payment?” It is “Which loan program do I qualify for, and what will my total cash to close be?”
→ Read more: First Time Home Buyer Programs With No Money Down
Can You Buy a Home With No Down Payment Through a VA Loan ? Yes, eligible Veterans, active-duty service members, certain National Guard or Reserve members, and eligible surviving spouses may be able to buy a home with no down payment through a VA loan. VA loans are made by private lenders and backed by the Department of Veterans Affairs.
The VA says VA-backed purchase loans can help eligible borrowers buy, build, or improve a home, especially if they do not want to make a down payment.
VA also states that nearly 90% of VA-backed loans are made with no down payment.
VA May Be a Good Fit If You: Have eligible military service Can obtain a Certificate of Eligibility Plan to live in the home as your primary residence Meet lender credit and income requirements Want to preserve cash upfront Want to avoid required monthly private mortgage insurance VA Costs and Requirements to Review A VA loan may reduce the down payment barrier, but buyers should still review:
VA funding fee, unless exempt Closing costs Seller credit options Property appraisal Occupancy rules Estimated monthly payment Cash needed at closing The VA states that borrowers still need to meet credit, income, and occupancy requirements from both the VA and the lender.
VA can be one of the strongest no down payment paths, but it still requires full lender approval.
Can You Buy a House Without a Down Payment Through a USDA Loan ? Yes, a USDA loan may allow eligible buyers to buy a house without a down payment if the property is in an eligible rural or suburban area and the household meets income requirements. USDA loans are designed to support affordable homeownership in eligible communities.
USDA Rural Development states that qualifying individuals and families may have the opportunity to purchase or build a single-family home with no money down through USDA housing programs.
USDA’s Single Family Housing Guaranteed Loan Program helps approved lenders provide homeownership opportunities for low- and moderate-income households purchasing adequate, modest, safe, and sanitary homes as their primary residence in eligible rural areas.
USDA May Be a Good Fit If You: Want to buy a primary residence Are open to eligible rural or suburban areas Meet USDA household income limits Have acceptable credit and repayment ability Want to reduce or avoid a traditional down payment Can qualify through an approved lender USDA Costs and Requirements to Review Before choosing USDA, review:
Exact property address eligibility Household income limits USDA guarantee fees Closing costs Appraisal and property condition Monthly payment Timeline and lender requirements USDA can help eligible buyers purchase with no money down, but both the buyer and the property must meet program rules.
Can You Buy a House With Zero Down Payment Using Assistance? Sometimes, down payment assistance may help buyers reduce or cover upfront down payment needs, but the rules vary by program. Assistance may come from state housing agencies, local governments, nonprofits, employers, or community-based programs.
Assistance may be structured as:
Grant Forgivable second loan Deferred-payment second loan Low-interest second mortgage Closing cost assistance Matched savings program The CFPB notes that local nonprofit or government organizations may offer special second mortgage programs on special terms to replace a down payment.
Assistance Programs May Consider: First-time buyer status Household income Property location Home price Credit profile Occupancy Homebuyer education Repayment terms Time living in the home Down payment assistance can be helpful, but buyers should understand whether the assistance is free money, a second loan, a deferred payment, or a forgivable program.
Can You Purchase a House Without a Down Payment and No Closing Costs? Possibly, but it is not guaranteed. A no down payment loan may remove the traditional down payment, while seller credits, lender credits, gifts, or assistance may help reduce closing costs. Whether this works depends on the loan program, contract terms, property, and underwriting approval.
Common closing-related costs may include:
Earnest money deposit Home inspection Appraisal Title and escrow fees Prepaid property taxes Homeowners insurance Escrow reserves HOA setup or transfer fees Moving expenses Some buyers may reduce upfront cash using:
Seller credits Lender credits Gift funds Closing cost assistance Approved grants Down payment assistance But there are limits.
Seller credits and assistance must usually meet loan program rules, and the lender must approve the structure.
Buying with no down payment is possible for some buyers. Buying with no cash at all is much harder and depends heavily on credits, assistance, and program guidelines.
→ Read more: What are the closing costs on a mortgage
What If You Do Not Qualify for a No Down Payment Mortgage? If you do not qualify for a no down payment mortgage, you may still be able to buy with a low down payment mortgage. FHA, Conventional 3% down, HomeReady, Home Possible, and down payment assistance may help eligible buyers purchase with less cash upfront.
Common alternatives include:
Loan Option
Down Payment Feature
Best For
FHA Loan As low as 3.5% down Buyers needing flexible credit guidelines Conventional 3% Down As low as 3% down Qualified first-time or eligible buyers HomeReady As low as 3% down Eligible low- to moderate-income borrowers Home Possible As low as 3% down Eligible very low- to moderate-income borrowers Down Payment Assistance Varies Buyers who meet state or local program rules
The CFPB explains that FHA loans may allow down payments as low as 3.5%, while conventional loans backed by Fannie Mae or Freddie Mac can require as little as 3% down.
FHA can be especially useful for some buyers who need more flexible credit guidelines, but FHA loans require mortgage insurance.
If VA or USDA does not work, do not stop there. A low down payment option may still help you buy sooner.
→ Read more: Minimum Down Payment for First-Time Home Buyers (0%–3% Options Explained)
How to Buy a House With No Down Payment: Step-by-Step To buy a house with no down payment, start by checking VA and USDA eligibility, then review down payment assistance, seller credits, gift funds, and low down payment alternatives. A pre-approval can show which options fit your credit, income, property goals, and cash-to-close needs.
Step 1: Check VA Eligibility Start here if you are a Veteran, active-duty service member, eligible National Guard or Reserve member, or surviving spouse.
Ask your loan advisor about:
Certificate of Eligibility VA funding fee Occupancy rules Appraisal requirements Estimated cash to close Step 2: Check USDA Property and Income Eligibility Start here if you are open to buying in an eligible rural or suburban area.
Ask about:
Property address eligibility Household income limits USDA guarantee fees Property condition requirements Estimated monthly payment Step 3: Review Down Payment Assistance Ask whether state, local, or nonprofit programs may help with upfront costs.
Review:
Grant vs. loan structure Repayment rules Income limits Homebuyer education Occupancy requirements Step 4: Ask About Seller Credits Seller credits may help reduce cash needed at closing.
Review:
Maximum seller contribution limits Eligible closing costs Contract strategy Appraisal and underwriting impact Step 5: Use Gift Funds When Allowed Gift funds may help cover eligible costs if the loan program allows them.
Your lender may require:
Gift letter Proof of transfer Source documentation Confirmation that funds are not a loan Step 6: Compare Low Down Payment Alternatives Even if you cannot buy with no down payment, compare FHA, Conventional 3% down, HomeReady, Home Possible, and assistance options.
Step 7: Get Pre-Approved Before Shopping Pre-approval helps you understand:
Your estimated price range Your loan options Your estimated monthly payment Your estimated cash to close Which homes may qualify Which documents are needed A pre-approval helps you avoid shopping for homes before knowing which no down payment or low down payment path actually works.
→ Read more: First-Time Buyer Mortgage Checklist: What to Do First
Buying a House With No Down Payment: Program Comparison Buying a house with no down payment usually requires a program that allows zero down or a structure that uses approved assistance and credits. VA and USDA are the strongest true zero down options, while FHA and Conventional may work as low down payment alternatives.
Option
Can It Be No Down Payment?
Good fit for
Key Caution
VA Loan Often yes, if eligible Eligible military borrowers Funding fee may apply unless exempt USDA Loan May be yes, if eligible Eligible buyers in approved areas Income and property rules apply Down Payment Assistance May reduce or cover down payment Eligible buyers by location/program Repayment terms vary Seller Credits Can help with closing costs Negotiated purchase contracts Must be allowed and approved Gift Funds Can help with cash needed Buyers with approved gift source Documentation required FHA Loan Not zero down by itself Flexible credit borrowers FHA mortgage insurance applies Conventional 3% Down Not zero down by itself Qualified first-time or eligible buyers PMI may apply
The CFPB explains that loan type affects how much you need for a down payment, the total cost of the loan, mortgage insurance, how much you can borrow, and the house price range you can consider.
The best choice depends on your eligibility, property, monthly payment, cash to close, and long-term affordability.
Case Study: Can This Buyer Purchase a House Without a Down Payment? A buyer may be able to purchase a house without a down payment if they qualify for VA or USDA. If not, they may still reduce upfront cash through assistance, seller credits, gift funds, or low down payment loan options.
Hypothetical Buyer Scenario A buyer wants to purchase a $350,000 primary residence.
Path
Down Payment
What the Buyer Should Review
VA Loan $0 if eligible COE, funding fee, occupancy, appraisal, lender approval USDA Loan $0 if eligible Property location, income limits, guarantee fee, lender approval FHA Loan 3.5% if eligible Mortgage insurance, credit flexibility, cash to close Conventional 3% Down 3% if eligible PMI, credit profile, monthly payment Assistance Program Varies Grant vs. loan, income limits, repayment rules Seller Credits Varies Negotiation, program limits, appraisal approval
In this example, a VA-eligible buyer may be able to buy with no down payment.
A buyer choosing a USDA-eligible property may also have a no down payment path.
A buyer who does not qualify for either may still compare low down payment and assistance-based options.
Loan Factory Experience Note: In real first-time buyer reviews, many buyers ask, “Can I buy a house with no down payment?” The stronger question is, “Which loan structure gives me the best balance of approval strength, monthly payment, and cash left after closing?” Sometimes a no down payment option works well. Other times, a small down payment with assistance or seller credits may be the better fit.
Common Mistakes to Avoid When Buying a Home With No Down Payment The biggest mistake when buying a home with no down payment is assuming zero down means zero cost. Buyers should also avoid ignoring closing costs, property eligibility, income limits, credit requirements, and long-term monthly affordability.
Mistake 1: Assuming Everyone Qualifies Not every buyer qualifies for VA or USDA.
Eligibility matters.
Mistake 2: Forgetting Closing Costs No down payment does not automatically remove closing costs.
Buyers should review cash to close early.
Mistake 3: Ignoring Property Rules USDA and VA both have property requirements.
A borrower may qualify, but the home may not.
Mistake 4: Choosing Based Only on “No Down Payment” A zero down loan may preserve cash, but buyers should still compare rate, APR, fees, mortgage insurance, guarantee fees, and payment.
Mistake 5: Waiting Too Long to Get Pre-Approved A pre-approval helps buyers understand real options before shopping, negotiating, or making offers.
The right preparation can help you avoid falling in love with a home before knowing which loan program actually works.
Loan Factory helps homebuyers compare mortgage options from 240+ wholesale lenders using technology designed to make the home loan process clearer, faster, and more transparent.
If you are asking “how can you buy a house with no down payment?”, Loan Factory can help you review available options based on your credit, income, location, property type, eligibility, and homebuying goals.
What Loan Factory Offers Homebuyers Compare options from 240+ wholesale lenders Review VA, USDA, FHA, Conventional, Jumbo, and specialty loan options through lender partners Explore no down payment and low down payment mortgage options Check estimated payment, APR, fees, and cash-to-close side by side Use TERA technology for faster loan comparison Work with local loan advisors Get guidance before making an offer Review whether seller credits, gift funds, or assistance may fit your situation Ready to see if you may qualify to buy a home with no down payment?
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Author Box Written by: Loan Factory Mortgage Education Team
Loan Factory is a technology-powered mortgage platform helping homebuyers compare mortgage options from 240+ wholesale lenders. Our mortgage education content is designed to help buyers understand loan programs, affordability, qualification factors, and the mortgage process before applying.
Compliance Disclaimer This article is for informational and educational purposes only and is not a commitment to lend. Loan programs, down payment options, grants, seller credits, lender credits, gift funds, rates, APR, fees, mortgage insurance, guarantee fees, and approval are subject to credit approval, underwriting, investor guidelines, property eligibility, income limits, occupancy requirements, assets, appraisal, and program availability. Not all applicants will qualify. Terms may change without notice.
Loan Factory is not affiliated with or acting on behalf of any government agency. FHA, VA, USDA, Conventional, Jumbo, and other loan programs are offered through participating lender partners, subject to eligibility and underwriting approval.
FAQ: How Can You Buy a House With No Down Payment? 
