Yes, but the path depends on who you are and what you may have access to for

You can buy a house without a down payment, but it is not the same as a regular mortgage. The main routes are VA loans (for military members and veterans), USDA loans (for rural areas), and conventional loans with down payment information programs. Each has different rules about who can use it, where the house can be, and what paperwork you need.

The catch is that without a down payment, lenders charge higher interest rates or require mortgage insurance, which costs you more over time. You will also may have access to for less money — a lender might approve you for $240,000 with zero down but $280,000 with 20% down, even if your income is the same.

Key Takeaways

  • VA loans and USDA loans both allow zero down payment, but VA loans are only for military members and veterans, while USDA loans only work in rural and some suburban areas.
  • Conventional mortgages with down payment information programs exist, but they usually require you to have decent credit and stable income, and the information itself often comes with strings attached.
  • Without a down payment, you will pay mortgage insurance (PMI on conventional loans, funding fees on VA loans), which adds hundreds of dollars to your monthly payment.
  • The house price you can afford without a down payment is lower than with one, because lenders see more risk and cap how much they will lend.

VA loans: zero down if you served

If you are a current or former member of the military, a VA loan lets you buy a house with no down payment and no mortgage insurance. You need a Certificate of may be able to access, which the Department of Veterans Affairs issues based on your service record. You can request one online through VA.gov or through your lender, and it usually arrives in a few days.

The lender charges a funding fee instead of mortgage insurance — this is a one-time cost rolled into your loan amount, usually between 1.4% and 3.6% of the loan. VA loans also have no prepayment penalty, meaning you can pay off the loan early without extra fees. The interest rate is often lower than conventional mortgages because the VA guarantees part of the loan if you stop paying.

You still need to show stable income and acceptable credit, but the bar is lower than conventional loans. The house must be in the United States, and you cannot use a VA loan to buy an investment property or a second home.

USDA loans: zero down in rural areas

The USDA Rural Development loan program lets you buy a house with no down payment if the property is in a rural area or certain suburbs. The USDA defines "rural" by zip code, and you can check whether your target area qualifies on the USDA website. The house must be your primary residence — the place you live most of the year.

Like VA loans, USDA loans charge a may provide fee instead of mortgage insurance, usually around 1% of the loan amount, also rolled into your monthly payment. You need to meet income limits, which vary by county and family size. A family of four in a lower-cost county might have a limit around $80,000 to $90,000 annually, while the same family in a higher-cost area might have a limit of $120,000 or more. Your lender can tell you the exact limit for your county.

USDA loans have no prepayment penalty and often have lower interest rates than conventional mortgages. You do need acceptable credit and proof of income, but like VA loans, the requirements are less strict than conventional loans.

Conventional mortgages with down payment information

Some lenders and nonprofits offer down payment information programs that work alongside a conventional mortgage. These programs give you money (usually $5,000 to $25,000) to cover your down payment and closing costs. You then take out a conventional mortgage for the rest. The information money is sometimes a grant (you do not repay it) and sometimes a second loan (you do repay it, but at a lower rate or with flexible terms).

The catch is that these programs have strict rules. You usually need a credit score of at least 620, sometimes higher. Your debt-to-income ratio — the amount you owe each month divided by your gross income — must be low enough that lenders think you can handle the payment. Most programs require you to take a homebuyer education class, which teaches you how mortgages work and how to manage a home.

Down payment information programs are run by nonprofits, local housing authorities, and sometimes employers or unions. There is no single national program; you have to search for what exists in your area. Your local housing authority or a 211 referral can point you toward programs that serve your county.

What happens to your monthly payment without a down payment

When you put down no money, lenders see you as higher risk. To protect themselves, they charge you more. On a conventional loan, that means private mortgage insurance (PMI), which typically costs 0.5% to 1.5% of your loan amount per year. On a $300,000 loan, that could be $1,500 to $4,500 per year, or $125 to $375 per month, added to your mortgage payment.

VA and USDA loans do not call it mortgage insurance, but the funding fee serves the same purpose — it protects the lender if you default. The difference is that you pay it once, upfront, rather than every month. However, because it is rolled into your loan, you pay interest on it for the life of the loan, which means it costs more overall.

The interest rate itself may also be slightly higher on a zero-down loan than on one with a 10% or 20% down payment. A lender might offer you 6.5% on a zero-down conventional loan but 6.2% on the same loan with 10% down. Over 30 years, that small difference adds up to tens of thousands of dollars.

How much house you can afford without a down payment

Lenders use your income to decide how much they will lend you. The standard rule is that your total monthly debt payments — mortgage, car loans, credit cards, student loans, everything — should not exceed 43% to 50% of your gross monthly income. Without a down payment, lenders are more conservative and may cap you at 43% rather than 50%.

This means you can afford less house without a down payment than with one. If you earn $60,000 per year ($5,000 per month), a lender might lend you $280,000 with a 20% down payment but only $240,000 with zero down. The difference is real money — it affects which neighborhoods you can buy in and whether you can afford the house you want.

The exact amount varies by lender, your credit score, and the type of loan. A VA loan lender may be more generous than a conventional lender because the VA backs part of the risk. Ask multiple lenders for a pre-qualification letter, which tells you how much they will lend you before you start house hunting.

When zero-down loans make sense and when they do not

A zero-down loan makes sense if you are a veteran or live in a rural area and you do not have savings. It also makes sense if you are buying soon and waiting to save a down payment would mean paying higher rent for years. The math changes if you have time to save: putting down 10% or 20% lowers your interest rate and eliminates mortgage insurance, which saves you money every month for 30 years.

Zero-down loans also make sense if home prices in your area are rising faster than you can save. If you are in a hot market and waiting two years to save a down payment means the house price goes up $50,000, buying now with zero down may be cheaper than waiting. They make less sense if you have unstable income or high existing debt, because lenders will approve you for less money and you have no financial cushion if you lose your job.

They also make less sense if you are buying in a market where prices are flat or falling — you have time to save, and a larger down payment protects you if the house value drops. In that case, waiting to build savings gives you more buying power and lower monthly costs.

Frequently Asked Questions

Do I need perfect credit to get a zero-down loan?

No. VA loans typically accept credit scores as low as 580, and USDA loans often accept 580 to 620. Conventional loans with down payment information usually want 620 or higher. A lower score may mean a higher interest rate, but you do not need perfect credit. Ask lenders what score they require before you spend time on an process.

What if I am not military and do not live in a rural area?

Your main option is a conventional loan with down payment information. Search for programs in your county through your local housing authority or 211. Some employers, unions, and nonprofits also run down payment information programs. If none exist in your area, you will need to save a down payment or wait until you move to a rural area or become may be able to access for a VA loan.

Can I use a zero-down loan to buy a second home or investment property?

No. VA loans, USDA loans, and most down payment information programs require the house to be your primary residence — the place you live full-time. You cannot use them to buy a vacation home or a rental property.

Will I pay more in interest over time without a down payment?

Yes. You will pay mortgage insurance or a funding fee, and possibly a slightly higher interest rate. Over 30 years, this adds up to thousands of dollars more than a loan with a down payment. However, if the alternative is renting and waiting years to save, buying now may still be cheaper overall.

How long does it take to get approved for a zero-down loan?

Approval usually takes two to four weeks, depending on the lender and how quickly you provide documents. VA loans sometimes move faster because the lender already knows the VA will back part of the risk. Have your income verification, tax returns, and bank statements ready to speed up the process.