Yes, but only through specific loan programs that exist for this purpose

You can buy a house with zero down payment using a VA loan, a USDA loan, or certain conventional loans with lender-paid mortgage insurance. These are real programs with real requirements—not workarounds or tricks. The catch is that each one has strict rules about who qualifies, where the house can be located, and what you pay over time instead of upfront.

No down payment does not mean no cost. You will pay mortgage insurance (a monthly fee that protects the lender if you stop paying), higher interest rates, or both. Over a 30-year loan, this costs thousands more than putting money down. But if you do not have savings, these programs let you buy now instead of waiting years to save.

Key Takeaways

  • VA loans (for military members and veterans) and USDA loans (for rural properties) allow zero down payment with no mortgage insurance requirement.
  • Conventional loans with zero down exist but require mortgage insurance, which adds $100 to $300+ per month to your payment depending on loan size and credit score.
  • All zero-down programs require a steady income history, good credit (usually 620 or higher), and proof you can afford the monthly payment.
  • Your actual costs include closing costs ($3,000 to $6,000 typically), which you may need to cover upfront or roll into the loan.

VA loans: zero down if you have military service

A VA loan is backed by the Department of Veterans Affairs and available to active-duty service members, veterans, and some surviving spouses. The lender takes on more risk because the VA guarantees part of the loan, so they do not require a down payment or mortgage insurance.

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 process takes a few days to a few weeks. You also need a valid credit score (typically 580 or higher, though most lenders prefer 620+), proof of income, and a debt-to-income ratio under 41% (meaning your monthly debts, including the new mortgage, should not exceed 41% of your gross income).

VA loans do charge a one-time funding fee (1% to 3.6% of the loan amount, depending on your service history and down payment). You can roll this into the loan balance, so you do not pay it upfront. The interest rate is often lower than conventional loans because the VA may provide makes the loan less risky for the lender.

USDA loans: zero down for rural and some suburban properties

A USDA loan is for people buying in rural areas or certain suburban zones designated by the USDA. The program is designed to help people in less populated areas build wealth through homeownership. Like VA loans, USDA loans require no down payment and no mortgage insurance.

You must meet income limits that vary by county and family size—typically 115% of the area median income, though some counties allow up to 150%. You can check your property's may be able to access and your income limit on the USDA's website. You also need a credit score of 620 or higher and a debt-to-income ratio under 41%.

USDA loans charge a may provide fee (1% to 2% of the loan amount) rolled into the loan, plus an annual fee of 0.35% of the remaining balance added to your monthly payment. Over time, this annual fee can be removed once you build equity, but you pay it for at least the first 10 years.

Conventional loans with mortgage insurance at zero down

Some conventional lenders offer zero-down mortgages, but they require private mortgage insurance (PMI)—a monthly payment that protects the lender if you default. PMI typically costs 0.5% to 1.5% of the loan amount per year, split into monthly payments. On a $300,000 loan, that is $125 to $375 per month.

You need a credit score of 620 or higher, proof of stable income, and a debt-to-income ratio under 43%. The interest rate is usually higher than a conventional loan with a down payment, sometimes by 0.25% to 0.75%. Over 30 years, that small rate difference adds tens of thousands to what you pay.

PMI stays on your loan until you reach 20% equity (either through payments or home appreciation). If your home value rises, you may be able to request PMI removal sooner by getting a new appraisal. Some lenders allow PMI removal after 11 years of on-time payments, even if you have not reached 20% equity.

What you still pay upfront with zero down

Zero down does not mean zero cost at closing. You will owe closing costs—typically $3,000 to $6,000 or 2% to 5% of the purchase price. These cover the appraisal, title search, title insurance, recording fees, and lender fees. Some lenders allow you to roll closing costs into the loan, but this increases your total debt and the interest you pay over time.

You may also need to pay for a home inspection ($300 to $500) and a survey ($200 to $500) before closing, depending on the lender and property. Some sellers will cover closing costs as part of the sale negotiation, which can help if you have no savings. Ask your real estate agent whether the seller is willing to contribute.

Credit score and income requirements across all programs

All zero-down programs require a credit score of 620 or higher. A higher score (680+) gets you better interest rates and easier approval. Your credit score reflects your payment history, how much debt you carry, and how long you have had credit accounts open.

Income requirements vary by program. VA and conventional loans look at your debt-to-income ratio—your total monthly debt payments divided by your gross monthly income. USDA loans use both debt-to-income ratio and total household income. You will need recent pay stubs (usually two months), tax returns (usually two years), and bank statements showing you can cover closing costs or have them covered by the seller.

If you are self-employed, you will need two years of tax returns and possibly a profit-and-loss statement. If you have changed jobs recently, lenders want to see that the new job is in the same field and pays similarly.

The real cost of zero down over 30 years

A $300,000 house with 20% down ($60,000) at 7% interest costs about $798,000 total over 30 years. The same house with zero down at 7.25% interest (a typical rate bump) costs about $870,000 total—an extra $72,000. That difference comes from the higher interest rate, mortgage insurance, or both.

If you can save even 5% to 10% down, you reduce the mortgage insurance period and lower your interest rate. Saving for six months to two years often saves you more money than buying immediately with zero down. But if you need to buy now—because rent is rising, you have a job offer in a new city, or you are tired of moving—zero-down programs let you do that without waiting.

Frequently Asked Questions

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

Most zero-down programs require a credit score of 620 or higher. If your score is lower, you will need to wait and build credit before applying. You can improve your score by paying bills on time, paying down credit card balances, and checking your credit report for errors at annualcreditreport.com.

What if I do not have money for closing costs?

Ask the seller to cover closing costs as part of the purchase agreement—this is common in competitive markets. Some lenders also allow you to roll closing costs into the loan, though this increases your total debt. A few programs (like some VA loans) allow the seller to pay certain fees on your behalf.

Can I remove mortgage insurance after I build equity?

Yes, but the timeline depends on your program. With conventional loans, PMI is removed once you reach 20% equity or after 11 years of payments. VA and USDA loans do not require mortgage insurance, so there is nothing to remove. Building equity faster through larger payments or home appreciation speeds up PMI removal.

Do I need to be a first-time homebuyer to use these programs?

No. VA loans, USDA loans, and conventional zero-down loans are available to anyone who meets the requirements, regardless of whether you have owned a home before. First-time homebuyer programs are separate and often offer additional perks like down payment help or lower rates.

What happens if I cannot afford the monthly payment?

If you miss payments, the lender can start foreclosure proceedings after 120 days of missed payments. This is true for any mortgage, zero-down or not. Before you apply, make sure your debt-to-income ratio is genuinely sustainable—do not stretch to the maximum the lender allows if it leaves no room for emergencies.