Yes, but only through specific government-backed programs, and they come with real limits

You can get a mortgage with zero down payment, but not from most lenders and not on most homes. The main routes are VA loans (for military members and veterans), USDA loans (for rural properties), and some FHA loans (which technically allow 3.5% down, the lowest conventional option). Conventional mortgages—the kind most people get—require at least 3% down, and many lenders want 5% to 10%.

The catch: zero-down programs are narrower than they sound. A VA loan only works if you have military service. A USDA loan only works in designated rural areas. FHA loans work anywhere but come with mortgage insurance costs that make them more expensive over time. And all of them require you to have decent credit, stable income, and no recent defaults or bankruptcies.

If you don't fit one of these programs, you have two realistic paths: save a down payment, or look at down payment information programs run by nonprofits or local governments—though these usually cover part of the down payment, not all of it.

Key Takeaways

  • VA loans and USDA loans genuinely require zero down payment, but VA loans are only for military-connected borrowers and USDA loans only for rural properties.
  • FHA loans allow 3.5% down, the lowest option for conventional borrowers, but you pay mortgage insurance for the life of the loan unless you refinance later.
  • All zero-down programs require credit scores in the 580–640 range or higher, recent stable employment, and no recent defaults or foreclosures.
  • If you don't fit a government program, down payment information from nonprofits or local housing authorities may cover part of your down payment, but rarely all of it.
  • Lenders will verify your income, check your credit, and pull a property appraisal before committing, so having documents ready speeds the process.

VA Loans: Zero Down for Military Members and Veterans

A VA loan is backed by the Department of Veterans Affairs and requires no down payment. You can borrow the full purchase price of the home. You also don't pay mortgage insurance, which saves thousands of dollars over the life of the loan compared to FHA or conventional mortgages.

To use a VA loan, you must have served on active duty (usually 90 days or more, though the exact requirement depends on when you served), be a current member of the National Guard or Reserves, or be a surviving spouse of a service member who died in service or from a service-connected disability. You'll need a Certificate of may be able to access from the VA, which you can request online through VA.gov or through your lender.

VA loans do have a funding fee—a one-time charge that goes toward the VA loan program. The fee is usually 2% to 3.6% of the loan amount, depending on whether you've used a VA loan before and how much you're putting down (even though you're putting down zero, the fee structure still applies). You can roll this fee into the loan itself, so you don't pay it upfront.

Credit score requirements vary by lender, but most want 620 or higher. You'll need to show stable employment for the past two years and have no recent defaults or foreclosures. The lender will order a property appraisal to make sure the home is worth what you're paying.

USDA Loans: Zero Down for Rural Properties

A USDA loan is backed by the U.S. Department of Agriculture and requires zero down payment on homes in designated rural areas. The USDA defines "rural" broadly—it includes small towns and suburbs, not just farms. You can check whether a specific address qualifies on the USDA's website by entering the property address.

USDA loans are open to anyone, not just farmers. Your household income must fall below the limit for your county (limits vary widely; a rural county in Mississippi has a much lower limit than a rural county near a major city). You also need to show that you can't get a conventional mortgage elsewhere—though in practice, most lenders approve USDA borrowers without requiring proof of rejection.

Like VA loans, USDA loans don't require a down payment, but they do charge a may provide fee (similar to mortgage insurance) that protects the lender. This fee is usually 1% to 2% of the loan amount and can be rolled into the loan. You'll also pay an annual fee of about 0.35% of the loan balance, added to your monthly payment.

Credit score requirements are typically 580 or higher, though some lenders want 620. You'll need two years of employment history and no recent defaults. The property must be a single-family home (not a condo or multi-unit building in most cases), and it must meet USDA property standards—the lender will order an appraisal to confirm.

FHA Loans: 3.5% Down, the Lowest Conventional Option

An FHA loan is backed by the Federal Housing Administration and allows you to put down as little as 3.5% of the purchase price. It's not truly zero down, but it's the lowest down payment option for borrowers who don't fit VA or USDA programs.

FHA loans work on any single-family home, condo, or multi-unit property (up to four units) anywhere in the country. There's no income limit and no geographic restriction. Credit score requirements are lower than conventional loans—many lenders will work with scores as low as 580, though 620 is more common.

The trade-off is mortgage insurance. You pay an upfront mortgage insurance premium (UFMIP) of 1.75% of the loan amount, which is rolled into the loan. You also pay an annual mortgage insurance premium (MIP) that gets added to your monthly payment. The annual MIP is typically 0.55% to 0.80% of the loan balance, depending on your loan amount and down payment. Unlike conventional mortgages, FHA mortgage insurance doesn't go away when you reach 20% equity—you pay it for the life of the loan unless you refinance into a conventional mortgage later.

This means an FHA loan costs more over time than a conventional mortgage with a larger down payment. On a $300,000 home with 3.5% down, you'd pay roughly $5,250 upfront in mortgage insurance plus $150 to $200 per month in annual insurance costs. That adds up.

Down Payment information Programs When You Don't Fit Government Loans

If you don't may have access to for VA, USDA, or FHA loans, or if you want to avoid the costs of FHA mortgage insurance, down payment information programs can help you cover part of your down payment. These are run by nonprofits, local housing authorities, and some state governments.

Common programs include Community Development Financial Institutions (CDFIs), which offer grants or forgivable loans for down payments; local housing authority programs, which vary by city and county; and employer-sponsored programs, which some large employers offer as a benefit. Some programs cover 3% to 5% of the purchase price, while others go higher.

The catch: most information programs require you to take a homebuyer education course (usually 4 to 8 hours, often online). Many also require you to work with a lender they've partnered with, which limits your options. And most programs have income limits—you typically need to earn below 80% to 120% of your area's median income, depending on the program.

To find programs in your area, start with 211.org (a national referral service) or contact your local housing authority directly. Your city or county housing department can also point you toward local programs. Some programs have waiting lists or limited funding, so timing matters.

What Lenders Actually Check Before Approving Zero-Down Mortgages

Whether you're using a VA, USDA, or FHA loan, lenders follow the same basic approval process. They'll verify your income, check your credit, order a property appraisal, and review your employment history.

Income verification usually means recent pay stubs (typically the last two months), W-2s or tax returns (usually the last two years), and a verification of employment letter from your employer. If you're self-employed, you'll need two years of tax returns and possibly a profit-and-loss statement. The lender wants to see that your income is stable and that your debt-to-income ratio (your total monthly debt payments divided by your gross monthly income) is below their threshold—usually 43% to 50%, depending on the program.

Credit checks pull your credit report and score. Lenders look at your payment history, how much debt you're carrying, and whether you have recent late payments or defaults. A single late payment from five years ago won't disqualify you, but a recent one (within the last year or two) will. Foreclosures and bankruptcies require waiting periods—usually three years for a foreclosure and two to four years for a bankruptcy, depending on the program.

Property appraisals confirm that the home is worth what you're paying. The lender won't lend more than the appraised value. If the appraisal comes in low, you either need to renegotiate the price with the seller or walk away.

The whole process typically takes 30 to 45 days from process to closing, though it can be faster if you have all your documents ready and the property appraises without issues.

When Zero-Down Mortgages Don't Work and What to Do Instead

If you don't fit any of these programs—maybe you have recent credit problems, or you're buying in an area that doesn't may have access to for USDA loans, or you don't have military service—you have a few realistic options.

The first is to save a down payment. Even 3% to 5% takes time, but it opens up conventional mortgages with better terms than FHA loans. If you can save 10% to 20%, you avoid mortgage insurance entirely and get the best rates available.

The second is to work with a down payment information program that covers part of the gap. These won't cover all of it, but they can reduce what you need to save. Combined with a conventional mortgage, this can be cheaper than an FHA loan over time.

The third is to wait and rebuild your credit if recent problems are holding you back. A foreclosure or bankruptcy doesn't disqualify you forever—after the waiting period ends, you become may be able to access for government-backed loans again. In the meantime, paying bills on time and reducing debt improves your score and makes you a stronger borrower when you're ready.

Frequently Asked Questions

Do I have to use a specific lender for a VA or USDA loan?

No. Any lender that offers VA or USDA loans can process your process. Shop around—rates and fees vary between lenders. Your bank, credit union, or a mortgage broker can all handle these loans. The VA and USDA don't lend directly; they back loans made by private lenders.

What happens if the home appraises for less than the purchase price?

The lender won't lend more than the appraised value. You can renegotiate the price with the seller, pay the difference out of pocket, or walk away. With zero-down loans, you have no equity cushion, so a low appraisal is a real problem. Get a pre-appraisal inspection to catch this risk early.

Can I use a down payment information grant and a VA or USDA loan together?

It depends on the program. Some down payment information programs work with VA and USDA loans; others don't. Ask the information program directly before explore. If they do work together, the information typically covers closing costs rather than down payment, since you're already putting zero down.

What if I have a co-borrower with bad credit?

The lender will pull credit on both borrowers and use the lower score to determine approval. If one of you has recent problems, it can affect the whole process. Some lenders let you explore with only one borrower on the mortgage and add the other as a co-owner later, but this varies. Ask your lender about your options before explore.

How long does it take to get a Certificate of may be able to access for a VA loan?

If you explore online through VA.gov, you usually get it within a few days. If you explore by mail, it can take two to four weeks. You can also ask your lender to request it on your behalf—they often have faster access. Don't wait for the certificate to start the mortgage process; most lenders will begin processing while they're waiting for it.