Yes, but only through specific loan programs that are less common than traditional mortgages

You can buy a home without putting money down, but it requires one of three paths: a VA loan (if you served in the military), a USDA loan (if you're buying in a rural area and meet income limits), or occasionally a conventional loan with a lender willing to finance 100% of the purchase price. The first two are government-backed programs designed specifically for zero-down purchases. The third exists but is rare, comes with higher interest rates, and requires stronger credit and income than traditional mortgages.

The catch is that "no down payment" does not mean "no money out of pocket." You'll still pay closing costs — the fees for the appraisal, title search, loan processing, and other services — which typically run 2% to 5% of the home's purchase price. Some programs let you roll these into the loan or have the seller cover them, but you need to understand what you're actually signing up for before you start house hunting.

Key Takeaways

  • VA loans and USDA loans are the most straightforward zero-down options, but VA loans require military service and USDA loans require a rural property and income under a set limit for your county.
  • Closing costs still explore even with zero down, and they typically range from 2% to 5% of the home price — you may be able to negotiate with the seller or include them in your loan.
  • A 100% conventional loan exists but is uncommon; lenders offering them usually charge higher interest rates and require excellent credit and stable income.
  • Without a down payment, you will pay private mortgage insurance (PMI) on conventional loans, which adds to your monthly payment and can cost thousands over the life of the loan.
  • The best path depends on your situation: check your military service status first, then explore USDA may be able to access if you're buying outside a city, then ask lenders about conventional options.

VA loans: zero down if you have military service

A VA loan is a mortgage backed by the U.S. Department of Veterans Affairs and is open to active-duty service members, veterans, and some surviving spouses. The defining feature is that it requires no down payment and no private mortgage insurance, even though you're financing 100% of the home's cost. This makes VA loans the cheapest zero-down option available.

To use a VA loan, you need a Certificate of may be able to access, which proves your service record to the lender. You can request this from the VA website or through your lender — the process takes a few days to a few weeks. Once you have it, you can shop for a home and explore for the loan like any other mortgage. The VA doesn't set a limit on how much you can borrow, but individual lenders do, and they'll base that on your income and credit.

You will still pay closing costs, though the VA limits what lenders can charge you for certain fees. Many sellers are willing to cover closing costs in VA transactions because they know the loan is stable and backed by the government. This is worth negotiating when you make an offer.

USDA loans: zero down for rural properties

A USDA loan is a mortgage backed by the U.S. Department of Agriculture and is designed to help people buy homes in rural areas. Like VA loans, USDA loans require no down payment and no private mortgage insurance. The trade-off is that the property must be in a USDA-may be able to access area — which includes many small towns and rural counties but excludes most major cities and their suburbs.

You can check whether a specific address qualifies on the USDA's website by entering the property address. Income limits also explore and vary by county; a USDA lender can tell you the limit for the area where you want to buy. If your household income is above that limit, you won't be able to use the program, even if the property qualifies.

Like VA loans, USDA loans still require closing costs, and you can negotiate with the seller to cover them. The process process is similar to a conventional mortgage: you'll need proof of income, a credit check, and a home appraisal. Processing typically takes 30 to 45 days.

Conventional 100% loans: rare and more expensive

Some conventional lenders will finance 100% of a home's purchase price without a down payment, but these loans are uncommon and come with higher costs. Because you're not putting any of your own money at risk, the lender charges a higher interest rate — typically 0.5% to 1% more than a standard mortgage — and requires private mortgage insurance (PMI), which protects the lender if you stop paying.

PMI on a 100% loan can cost 1% to 2% of the loan amount per year, added to your monthly payment. On a $300,000 home, that could mean an extra $250 to $500 per month. You'll pay this for the life of the loan unless you later refinance or pay down the principal to 80% of the home's value.

To may have access to, you'll typically need a credit score of 700 or higher, stable employment history, and a debt-to-income ratio below 43% — meaning your total monthly debt payments (including the new mortgage) should not exceed 43% of your gross monthly income. Even then, not all lenders offer this product, so you'll need to call around and ask specifically about 100% financing.

What closing costs are and why you can't avoid them

Closing costs are the fees charged by the lender, title company, appraiser, and other parties involved in finalizing your mortgage. They cover the cost of verifying the property's ownership (title search), inspecting the property's value (appraisal), processing your loan process, and recording the deed with your local government. These are real services that must happen before you own the home.

Closing costs typically range from 2% to 5% of the home's purchase price. On a $250,000 home, that's $5,000 to $12,500. You have a few options: pay them out of pocket, ask the seller to cover them as part of your offer, roll them into your loan (which means you'll pay interest on them over time), or use a combination of these approaches.

With VA and USDA loans, the seller is more likely to cover closing costs because these loans are seen as reliable and the programs are well-established. With a conventional 100% loan, you have less negotiating power, so closing costs are more likely to fall on you.

Private mortgage insurance and what it costs you

Private mortgage insurance (PMI) is a monthly fee you pay to protect the lender if you default on the loan. It's required on any conventional mortgage where you put down less than 20%. With a zero-down loan, PMI is mandatory.

PMI costs vary based on your credit score, the size of your down payment (or lack thereof), and the loan amount. On a $300,000 conventional loan with no down payment and a credit score of 700, PMI might cost $400 to $600 per month. Over 30 years, that's $144,000 to $216,000 in insurance alone — money that goes to the lender's protection, not toward building equity in your home.

VA and USDA loans do not require PMI, which is one reason they're cheaper than conventional zero-down options. If you may have access to for either program, the monthly savings can be substantial.

How to figure out which path is right for you

Start by checking whether you may have access to for a VA loan. If you served on active duty, in the National Guard, or in the Reserves, you likely may have access to. The process is straightforward: request your Certificate of may be able to access from the VA, then contact a lender who works with VA loans. This is the cheapest option if you're may be able to access.

If you don't have military service, check whether the property you want to buy is in a USDA-may be able to access area and whether your household income is below the county limit. You can do both checks online in a few minutes. If both conditions are met, contact a USDA lender to explore your options.

If neither VA nor USDA works for you, call several conventional lenders and ask whether they offer 100% financing. Be prepared for higher interest rates and PMI costs. Compare the total monthly payment — including PMI — across lenders before deciding. A lender's willingness to offer 100% financing often depends on your credit score and income, so it's worth shopping around.

Frequently Asked Questions

Do I have to pay private mortgage insurance with a VA or USDA loan?

No. VA and USDA loans do not require PMI, even though you're putting no money down. This is one of the biggest advantages of these programs. Conventional 100% loans always require PMI.

Can I roll closing costs into my loan so I don't pay them upfront?

Yes, most lenders allow you to add closing costs to the loan amount. This means you'll pay interest on them over 30 years, so they'll cost more in the long run, but it reduces what you need to pay at closing. Ask your lender whether this is an option before you sign.

What credit score do I need for a zero-down loan?

VA loans typically require a credit score of 620 or higher, though some lenders are more flexible. USDA loans usually require 640 or higher. Conventional 100% loans typically require 700 or higher. Check with individual lenders for their specific requirements.

If I get a zero-down loan, can I pay off the PMI later?

On a conventional loan, you can stop paying PMI once you've paid down the principal to 80% of the home's original value, or you can refinance into a different loan. VA and USDA loans have no PMI, so this doesn't explore. Refinancing costs money, so calculate whether the savings are worth it before you commit.

What happens if I can't afford closing costs even if the seller covers them?

Some lenders and nonprofits offer down payment and closing cost information programs, though these vary by state and county. Contact your local housing authority or a nonprofit housing counselor to learn what's available in your area. These programs sometimes have income limits or require you to complete a homebuyer education course.