Yes, but only through specific loan programs that shift the risk differently

You can buy a home without putting money down, but you cannot do it through a conventional mortgage. Instead, you use a loan backed by a government agency—the VA loan (if you served in the military), the USDA loan (if you buy in a rural area), or an FHA loan (available to most borrowers). Each program allows zero down payment because the government guarantees part of the lender's loss if you stop paying.

The trade-off is real: you pay mortgage insurance, higher interest rates, or both. You also face stricter income limits, property location rules, or service requirements. And you still need to prove you can actually afford the monthly payment—lenders will not hand you a loan just because a program exists.

The path forward depends on which program you might may have access to for. That depends on your military history, where you want to buy, and your credit and income situation.

Key Takeaways

  • VA loans and USDA loans allow zero down payment with no mortgage insurance; FHA loans allow as little as 3.5 percent down but require mortgage insurance for the life of the loan.
  • VA loans require a Certificate of may be able to access proving military service; USDA loans require the property to be in a designated rural area and your income to fall below the area limit.
  • All three programs require you to meet debt-to-income limits (usually 43 to 50 percent), meaning your total monthly debt payments cannot exceed that percentage of your gross income.
  • Interest rates on zero-down loans are typically higher than conventional mortgages, and VA and USDA loans charge funding fees or may provide fees that get rolled into the loan amount.

VA loans: zero down, no mortgage insurance, military service required

A VA loan is backed by the Department of Veterans Affairs and is available to active-duty service members, veterans, and some surviving spouses. 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 certificate proves you meet the service requirements—typically 90 days of active duty during wartime or 181 days during peacetime, though the rules vary by era.

VA loans require zero down payment and carry no mortgage insurance. Instead, you pay a funding fee (usually 1.4 to 3.6 percent of the loan amount) that gets added to what you borrow. If you are receiving VA disability compensation, you may not owe the funding fee at all. The interest rate is typically lower than FHA or USDA loans because the VA may provide reduces the lender's risk.

The catch: you must buy a single-family home or a multi-unit property (up to four units) that you will occupy as your primary residence. You cannot use a VA loan to buy an investment property or a vacation home. Lenders also cap your debt-to-income ratio at 41 to 50 percent depending on the lender, and they will pull your credit report and verify your income.

USDA loans: zero down in rural areas, income limits explore

A USDA loan is backed by the U.S. Department of Agriculture and is designed for borrowers buying in rural areas. The USDA defines "rural" broadly—it includes small towns and suburbs outside major metro areas, not just farmland. You can search the USDA's property may be able to access map on their website to check whether a specific address qualifies.

USDA loans require zero down payment and no mortgage insurance. Instead, you pay a may provide fee (usually 1 to 2 percent upfront, plus 0.35 percent annually) that gets rolled into the loan. The interest rate is typically competitive with conventional mortgages.

The income limit is the main barrier. Your household income cannot exceed 115 percent of the median income for your county. In a rural county with a median household income of $60,000, your limit would be around $69,000. The USDA publishes income limits by county on their website. You also need a debt-to-income ratio of 41 to 43 percent or lower, and you must occupy the home as your primary residence.

FHA loans: 3.5 percent down, mortgage insurance required

An FHA loan is backed by the Federal Housing Administration and is the most accessible zero-down alternative—though technically it requires 3.5 percent down. You can borrow that 3.5 percent from a family member, a nonprofit, or an employer program, so your out-of-pocket cost can still be zero.

The major drawback is mortgage insurance. You pay an upfront mortgage insurance premium (1.75 percent of the loan amount, usually rolled into the loan) plus an annual premium (0.55 to 0.8 percent of the loan balance per year) for the life of the loan. On a $300,000 loan, that annual premium is roughly $1,650 to $2,400 per year—money you cannot avoid unless you refinance into a conventional loan later.

FHA loans have looser income and credit requirements than VA or USDA loans. Your debt-to-income ratio can go as high as 50 percent, and you can have a credit score as low as 500 (though 580 or higher gets better rates). There are no geographic restrictions—you can buy anywhere. You must occupy the home as your primary residence.

What lenders actually check before approving you

Having access to a zero-down program does not mean you will be approved. Lenders verify three things: your income, your debts, and your credit history. They calculate your debt-to-income ratio by adding up all your monthly debt payments (car loans, student loans, credit cards, child support, the new mortgage) and dividing by your gross monthly income. If that ratio exceeds the program's limit, you will not may have access to, no matter how good your credit is.

Your credit score matters less for FHA loans (which accept scores as low as 500) but still affects your interest rate. VA and USDA loans typically require a score of 620 or higher, though some lenders go lower. Lenders also pull a full credit report and may ask about late payments, collections, or bankruptcies. Recent bankruptcy (within two years for FHA, three years for VA or USDA) usually disqualifies you.

Income verification is strict. Lenders want recent pay stubs, tax returns, and bank statements. If you are self-employed, they average your income over two years. If you changed jobs recently, they may ask for a letter from your new employer confirming your salary and that your position is permanent.

The real cost of zero down: fees, insurance, and higher rates

A zero-down loan costs more than a conventional 20-percent-down mortgage because lenders charge higher interest rates and insurance to cover the extra risk. On a $300,000 home, the difference can be $100 to $200 per month in interest alone, plus mortgage insurance if you use an FHA loan.

VA and USDA loans avoid mortgage insurance but charge funding or may provide fees (1 to 3.6 percent) that get added to your loan balance. That means you borrow more money upfront. FHA loans charge both an upfront premium and an annual premium, which adds up over time.

Interest rates also vary by program. VA loans typically offer the lowest rates because the VA may provide is strong. USDA loans are competitive with conventional mortgages. FHA loans usually carry rates 0.25 to 0.5 percent higher than conventional loans. Your personal credit score, debt-to-income ratio, and the lender you choose will all affect your exact rate.

How to move forward: which program fits your situation

Start by determining which programs you might may have access to for. If you served in the military, request your Certificate of may be able to access from VA.gov and talk to a VA-approved lender. If you want to buy in a rural area, check the USDA property map and look up your county's income limit. If neither of those applies, FHA is your option.

Next, get pre-approved. A lender will verify your income, check your credit, and calculate your debt-to-income ratio. Pre-approval takes one to three business days and costs nothing. It also shows sellers you are serious and gives you a clear picture of how much you can borrow.

Then find a real estate agent familiar with the program you are using. VA and USDA loans have specific rules about property condition and appraisals that not all agents know. A knowledgeable agent can help you avoid properties that will not pass inspection or appraisal.

Finally, lock in your interest rate once you make an offer. Rates change daily, and locking protects you if rates rise while your loan is being processed. The lock period is usually 30 to 60 days.

Frequently Asked Questions

Can I use a VA or USDA loan to buy a second home or investment property?

No. Both programs require you to occupy the home as your primary residence. You cannot use them for vacation homes, rental properties, or second homes. FHA loans have the same restriction.

What if my debt-to-income ratio is too high?

You have two options: pay down existing debt before explore, or increase your income. Some lenders will go slightly above their stated limit if you have compensating factors (large savings, low credit card balances, stable employment history). Ask your lender what flexibility they have.

Can I borrow the 3.5 percent down payment for an FHA loan from anyone?

Not quite. You can borrow from a family member, a nonprofit, an employer, or a government agency. You cannot borrow from the seller, the real estate agent, or anyone with a financial interest in the sale. The lender will ask where the down payment came from and may require a gift letter if it is from a family member.

Will I ever be able to remove mortgage insurance from an FHA loan?

Only if you refinance into a conventional loan later. FHA mortgage insurance stays for the life of the loan if you put down less than 10 percent. Once you have built equity and your credit improves, refinancing into a conventional loan (which requires 20 percent equity to avoid insurance) can save you money.

Do I need a real estate agent to use one of these programs?

No, but it helps. An agent familiar with VA, USDA, or FHA loans knows which properties will pass appraisal, how to negotiate with sellers, and how to handle the paperwork. If you go without an agent, you will handle all of this yourself and may miss problems that cost you later.