Yes, but only through specific loan programs, and they come with real trade-offs

You can buy a house without putting money down, but you cannot do it through a conventional mortgage. The programs that allow zero down are VA loans (for military members and veterans), USDA loans (for rural properties), and FHA loans with a 3.5% down payment minimum—which is not zero, but close. Each has different rules about who qualifies, what property types work, and what you pay in return for not saving first.

The catch is real: no down payment means higher monthly payments, mandatory mortgage insurance, stricter income limits, and a smaller pool of sellers willing to work with you. Lenders also scrutinize your credit and debt more carefully when you have no equity cushion. Understanding which program fits your situation—and what it actually costs over time—matters more than the headline of zero down.

Key Takeaways

  • VA loans and USDA loans genuinely require zero down, but VA loans are only for military-connected borrowers and USDA loans only for rural properties that meet specific location rules.
  • FHA loans require 3.5% down, not zero, but that 3.5% can come from a gift or grant rather than your own savings.
  • All zero-down programs charge mortgage insurance (either upfront or monthly), which adds thousands to your total cost over the life of the loan.
  • Lenders approve zero-down buyers only if your credit score, debt-to-income ratio, and employment history are strong enough to offset the risk.
  • Sellers may be reluctant to accept zero-down offers because appraisals are more likely to come in low and inspections more likely to reveal problems you cannot absorb.

VA loans: zero down for military and veterans

A VA loan is backed by the U.S. Department of Veterans Affairs and requires no down payment, no mortgage insurance, and no prepaid interest. You must be an active-duty service member, a veteran, a surviving spouse of a service member who died in service, or a National Guard or Reserve member who meets specific duty requirements. You establish your may be able to access through a Certificate of may be able to access, which you request from the VA or through your lender.

The VA does not lend the money—banks and mortgage companies do. The VA guarantees a portion of the loan, which is why lenders will approve zero down. You pay a one-time funding fee (usually 2.3% to 3.6% of the loan amount) unless you are a surviving spouse or have a service-connected disability rated by the VA. This fee can be rolled into the loan, so you do not pay it upfront. The interest rate on VA loans is typically lower than conventional rates, which offsets some of the cost of the funding fee.

VA loans have no prepayment penalty, no maximum loan amount set by the VA itself (though lenders set their own limits), and no property type restrictions beyond the requirement that it be your primary residence. You can use a VA loan to buy a single-family home, a condo, a townhouse, or a manufactured home. You can also use it to refinance an existing mortgage.

USDA loans: zero down for rural properties

A USDA loan is backed by the U.S. Department of Agriculture and requires zero down payment for properties in may be able to access 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 using the USDA's property may be able to access tool on their website.

You must meet income limits, which vary by county and household size. Generally, your household income cannot exceed 115% of the area median income, though some counties allow up to 125% for certain borrowers. You also cannot have a recent history of credit problems: the USDA looks for at least two years of on-time payments on credit accounts and no recent bankruptcies or foreclosures.

USDA loans charge a may provide fee (1% to 3.5% of the loan amount, depending on the loan size and your down payment—even though it is zero, the fee structure still applies). This fee is rolled into the loan. You also pay an annual mortgage insurance premium, which is deducted from your monthly payment. The combination of the may provide fee and annual insurance adds roughly 0.5% to 1% to your effective interest rate over the life of the loan.

FHA loans: 3.5% down, often from a gift

FHA loans require a minimum 3.5% down payment, which is not zero but is the lowest down payment option available to most buyers. The 3.5% can come from your own savings, a gift from a family member, a grant from a nonprofit or government program, or an employer assistance program. You do not have to prove the money came from your own work—a gift letter from a relative is sufficient.

FHA loans are available to anyone who meets basic credit and income requirements; there is no military service requirement or property location restriction. Your credit score needs to be at least 580 to may have access to for the 3.5% down option (some lenders require 620 or higher). Your debt-to-income ratio—the total of all your monthly debt payments divided by your gross monthly income—cannot exceed 43% for most lenders, though some allow up to 50% if other factors are strong.

FHA loans charge an upfront mortgage insurance premium (1.75% of the loan amount, rolled into the loan) and an annual mortgage insurance premium (0.55% to 0.8% of the loan amount per year, deducted from your monthly payment). This insurance stays on the loan for the full 30 years if you put down less than 10%, which means you pay it for decades even after you have built equity. If you put down 10% or more, the insurance drops off after 11 years.

What zero down actually costs you over time

The trade-off for not saving a down payment is a higher total cost. Consider a $300,000 home: a conventional buyer with 20% down ($60,000) pays a lower interest rate and no mortgage insurance. A zero-down VA buyer pays no mortgage insurance but a funding fee of roughly $6,900 to $10,800 (rolled into the loan). An FHA buyer with 3.5% down ($10,500) pays an upfront insurance premium of $5,250 plus annual insurance of $1,650 to $2,400 per year.

Over a 30-year loan, the FHA buyer pays roughly $60,000 to $90,000 in mortgage insurance alone, on top of the principal and interest. The VA buyer avoids this but still pays the funding fee. A conventional buyer with 20% down pays nothing for insurance and typically gets a lower interest rate, which compounds the savings over time. The difference between zero down and 20% down can easily exceed $100,000 over the life of the loan.

This does not mean zero-down loans are a bad choice—they allow you to buy sooner and build equity instead of renting. But the monthly payment will be higher, and the total amount you pay back will be substantially more. Run the numbers with a lender before you commit.

Why sellers may hesitate on zero-down offers

A zero-down buyer is statistically more likely to default on the loan, which means lenders scrutinize these applications more carefully. But sellers do not see the lender's scrutiny—they see an offer from someone with no equity in the home. If the appraisal comes in low (which happens more often with zero-down buyers because lenders are more conservative), the deal can fall apart. If the inspection reveals problems, you have no down payment cushion to absorb the cost of repairs, and you may walk away.

Sellers in competitive markets often prefer offers from buyers with larger down payments because those deals are more likely to close. In a slow market, a zero-down offer may be the only one on the table, and sellers accept it. But in a hot market, you may lose bidding wars to buyers who put 10% or 20% down. This is not a rule—it depends on the market, the property, and the seller's situation—but it is a real disadvantage to know about.

How to strengthen a zero-down application

Lenders approve zero-down buyers when other factors are very strong. A credit score above 700, a debt-to-income ratio below 40%, and two years of stable employment in the same field all help. If you have a co-signer with a strong credit history, that improves your chances. If you can show savings in the bank (even if you are not using it for the down payment), lenders see you as more stable.

Documentation matters: gather recent pay stubs, tax returns for the past two years, bank statements, and a letter from your employer confirming your job and income. If you have had any late payments, collections, or credit problems in the past, be ready to explain them in writing. Lenders want to see that any past problems were temporary and that you have recovered.

Shop with multiple lenders. Different lenders have different appetite for zero-down borrowers, and their rates and fees vary. A lender that specializes in VA loans may offer better terms than a bank that treats VA loans as an afterthought. Similarly, USDA lenders vary in how strictly they interpret income limits and property may be able to access. Getting quotes from three to five lenders takes a few hours and can save you thousands.

Frequently Asked Questions

Can I use a gift for a down payment on a zero-down loan?

On FHA loans, yes—the 3.5% down can be a gift from a family member. On VA and USDA loans, no down payment is required at all, so a gift is not part of the equation. If you want to put money down on a VA or USDA loan to reduce the loan amount, you can, but it is not required.

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

The lender will not approve a loan for more than the appraised value. If you have no down payment, you cannot make up the difference out of pocket. The deal either falls apart, the seller lowers the price, or you walk away. This is why zero-down buyers sometimes lose offers in competitive markets.

Do I have to pay mortgage insurance forever on an FHA loan?

If you put down less than 10%, yes—the annual mortgage insurance stays for the full 30 years. If you put down 10% or more, it drops off after 11 years. On VA and USDA loans, there is no ongoing mortgage insurance, though VA loans have the upfront funding fee.

Can I refinance to remove mortgage insurance later?

Yes, but only if your home appreciates enough that you have at least 20% equity. If you bought with 3.5% down and the home value has not risen significantly, you may not have enough equity to refinance into a conventional loan without mortgage insurance. VA and USDA loans do not have this problem because they never required mortgage insurance in the first place.

What if I do not may have access to for VA, USDA, or FHA?

Conventional loans typically require at least 3% down, and some lenders offer programs with that minimum. If your credit score is below 580 or your debt-to-income ratio is above 50%, you may need to work with a credit counselor or wait until your financial situation improves before applying.