Yes, but the loan type and your finances determine whether it's realistic

You can buy a house without a down payment through specific loan programs, but "no down payment" does not mean "no money required." You will still pay closing costs, property taxes, insurance, and inspections—typically $2,000 to $5,000 out of pocket before you close. The lender covers the purchase price itself, but you take on a larger loan and pay more interest over time.

The main zero-down programs are VA loans (for military members and veterans), USDA loans (for rural properties), and some conventional loans with lender-specific programs. FHA loans require 3.5% down, not zero, though that is the lowest government-backed option. Each has different income limits, property requirements, and credit score thresholds.

Key Takeaways

  • VA loans and USDA loans genuinely require zero down payment, but VA loans are only for military-connected borrowers and USDA loans only for properties in designated rural areas.
  • You will still owe closing costs, inspections, and appraisals upfront—typically $2,000 to $5,000—even with zero down on the purchase price itself.
  • A zero-down loan means a larger monthly payment and more total interest paid over the life of the loan compared to putting money down.
  • 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 if you have military service

A VA loan is backed by the Department of Veterans Affairs and requires no down payment, no private mortgage insurance, and no prepayment penalty. You must be an active-duty service member, veteran, or surviving spouse of someone who died in service or from a service-connected disability. The VA does not lend the money directly—a bank or mortgage company does—but the VA guarantees a portion of the loan, which removes the lender's risk.

To use a VA loan, you 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 property must be your primary residence, and the lender will order a VA appraisal to confirm the home is worth the purchase price. You will still pay a VA funding fee (typically 2.3% of the loan amount for first-time users), though this can be rolled into the loan itself rather than paid upfront.

VA loans have no income ceiling and no maximum loan amount in most cases, though some lenders set their own limits. Your debt-to-income ratio typically needs to be below 41%, and your credit score should be at least 620, though some lenders require 640 or higher.

USDA loans: zero down for rural and suburban properties

A USDA loan is backed by the U.S. Department of Agriculture and requires zero down payment for properties in designated rural areas. The USDA defines "rural" broadly—it includes many suburbs and small towns, not just farmland. You can check whether a specific address qualifies on the USDA's website by entering the property address.

USDA loans are available to borrowers with low to moderate income; the income limit varies by county and household size. A single person in a rural county might have a limit of $60,000 to $80,000, while a family of four could go higher—check your county on the USDA website for the exact number. You must occupy the home as your primary residence, and you cannot use the loan to buy investment property or a second home.

Like VA loans, USDA loans require no private mortgage insurance, but you will pay a may provide fee (typically 1% to 3.5% of the loan amount), which is usually rolled into the loan. Your credit score should be at least 580 to 640 depending on the lender, and your debt-to-income ratio typically cannot exceed 41%.

Conventional loans with minimal or zero down

Some banks and mortgage companies offer conventional loans with as little as 3% down or, rarely, zero down. These are not government-backed and depend entirely on the lender's own rules. Lenders offering zero-down conventional loans typically require a higher credit score (680 or above), a lower debt-to-income ratio, and proof of significant savings or assets. They may also require you to work with a specific real estate agent or use their title company.

If you put down less than 20%, you will pay private mortgage insurance (PMI), which protects the lender if you default. PMI costs 0.5% to 1.5% of the loan amount per year, added to your monthly payment. With zero down, PMI is mandatory and will stay on your loan until you refinance or build 20% equity, which takes years.

Conventional loans with minimal down are harder to find than VA or USDA loans and often come with higher interest rates to offset the lender's risk. Shop multiple lenders—credit unions, online banks, and regional banks sometimes have programs that national lenders do not advertise.

What you still pay even with zero down

Zero down does not mean zero cost at closing. You will owe closing costs, which typically run 2% to 5% of the purchase price. On a $300,000 house, that is $6,000 to $15,000. Closing costs include the appraisal, title search, title insurance, recording fees, attorney fees (in some states), homeowners insurance, and property taxes. Some lenders allow you to roll closing costs into the loan, but that increases your monthly payment and total interest.

You will also need a home inspection (typically $300 to $500), which is separate from the appraisal. The inspection is not required by the lender but is strongly recommended—it reveals structural problems, roof condition, plumbing, and electrical issues before you buy. Skipping it to save money is a common mistake that costs far more later.

Property taxes and homeowners insurance begin immediately after closing. Homeowners insurance is required by the lender and typically costs $1,000 to $2,000 per year depending on the home value and location. Property taxes vary widely by state and county but are often $2,000 to $5,000 per year.

How zero down affects your monthly payment and total cost

A larger loan means a larger monthly payment. On a $300,000 house, putting zero down means borrowing the full $300,000. Putting 20% down means borrowing $240,000. At a 7% interest rate over 30 years, the difference is roughly $200 per month. Over 30 years, that extra $200 per month adds up to $72,000 in additional payments.

If you have zero down, you also pay PMI (on conventional loans) or a funding fee (on VA loans) or a may provide fee (on USDA loans). These are built into your monthly payment or the loan amount itself. A VA funding fee of 2.3% on a $300,000 loan is $6,900 added to what you borrow. That $6,900 then accrues interest over 30 years, costing you roughly $13,000 total.

The trade-off is that you buy a home sooner rather than waiting to save a down payment. If home prices are rising faster than you can save, buying now with zero down may cost less overall than waiting two years to save 20% down. But if you can save even 5% to 10%, your long-term cost drops significantly.

Credit score, debt, and income requirements

Lenders scrutinize your finances more carefully when you have no down payment. A down payment signals that you have saved money and are committed to the purchase. Without it, the lender relies on your credit score, income stability, and existing debt to assess risk.

Most zero-down programs require a credit score of at least 620, though 640 or higher is safer. Your debt-to-income ratio—the total of all monthly debt payments divided by gross monthly income—typically cannot exceed 41% to 50%, depending on the program. If you earn $5,000 per month and already owe $1,500 in car loans, credit cards, and student loans, adding a $2,000 mortgage payment would push you to 70%, which exceeds the limit.

Lenders also verify employment history. Most want to see two years of stable employment in the same field. If you recently changed jobs, some lenders will still approve you if the new job is in the same industry and pays similarly. Self-employed borrowers need two years of tax returns and may face stricter requirements.

Frequently Asked Questions

Can I get a zero-down loan if I have bad credit?

Most zero-down programs require a credit score of at least 620, and some require 640 or higher. If your score is below 620, you may not may have access to for VA, USDA, or conventional zero-down loans. Improving your credit before applying—by paying down debt and fixing errors on your credit report—takes three to six months and can open more options.

What if the house I want is not in a USDA-may be able to access area?

If the property is in an urban or suburban area outside USDA boundaries, you cannot use a USDA loan. Your options are VA loans (if may be able to access), conventional loans with 3% to 5% down, or FHA loans with 3.5% down. Check the USDA website to confirm the property address before making an offer.

Can I borrow money for the down payment from family?

Most lenders allow a gift from a family member, but they require a signed letter stating it is a gift, not a loan you must repay. The gift must come from your own bank account before closing—lenders will ask where large deposits came from. Some programs have limits on how much of your down payment can be a gift; VA and USDA loans typically allow 100% gifts, while conventional loans may require you to contribute at least 3% of your own money.

Do I need to pay PMI forever on a zero-down conventional loan?

PMI stays on your loan until you reach 20% equity through payments or refinancing. On a $300,000 loan with zero down, you need to pay down to $240,000 before PMI drops off. At a standard payment rate, this takes 10 to 15 years. You can request PMI removal once you hit 20% equity, but the lender will not remove it automatically.

Is a zero-down loan a bad idea?

It depends on your situation. If you are a veteran or buying in a rural area, VA and USDA loans are designed for zero down and offer good terms. If you are using a conventional loan with zero down, you pay more in interest and PMI over time. The real question is whether waiting to save a down payment costs you more in rising home prices than the extra interest you will pay on a larger loan.