Yes, but only through specific loan types and with conditions attached
You can get a mortgage without a down payment, but it is not the default option most lenders offer. The main routes are VA loans (for military members and veterans), USDA loans (for rural properties), and some conventional loans with 0% down through specific lenders. Each has different rules about who qualifies, what property types work, and what you pay in return for putting no money down.
The trade-off is real: when you do not put money down, lenders charge you higher interest rates and require mortgage insurance — a monthly fee that protects the lender if you stop paying. Over the life of a 30-year loan, this costs thousands more than putting down 10% or 20%. Lenders see zero-down borrowers as riskier, so they price that risk into your monthly payment.
Key Takeaways
- VA loans and USDA loans allow 0% down for borrowers who meet their specific requirements, but VA loans are only for military-connected people and USDA loans only for rural properties.
- Conventional 0% down loans exist but carry higher interest rates and require mortgage insurance, making your monthly payment significantly larger than with a down payment.
- Your credit score, debt-to-income ratio, and employment history matter more when you have no down payment, because the lender has no equity cushion if the loan goes bad.
- Closing costs (typically 2% to 5% of the home price) still come out of your pocket even with 0% down, unless you negotiate the seller to cover them.
VA loans: zero down for military and veterans
If you served in the military, are currently serving, or are a surviving spouse of a service member, you may be able to get a VA loan with no down payment. The U.S. Department of Veterans Affairs does not lend the money itself — instead, it guarantees part of the loan to a private lender, which removes the lender's risk and lets them offer 0% down.
To use a VA loan, you need a Certificate of may be able to access, which you request from the VA. The process takes a few days to a few weeks online. You also need a valid Social Security number, a steady income history, and a credit score that most lenders set at 580 or higher (though some want 620+). The property must be your primary residence — you cannot use a VA loan to buy an investment property or vacation home.
VA loans do not require mortgage insurance, which saves you money compared to conventional 0% down loans. However, you do pay a VA funding fee — a one-time charge that ranges from 1.4% to 3.6% of the loan amount, depending on whether you have served before and whether you are putting any money down. This fee is usually rolled into your loan, so you pay it over time rather than upfront.
USDA loans: zero down for rural properties
The U.S. Department of Agriculture offers mortgages with 0% down for homes in rural areas. The property must be in an may be able to access rural zone (you can check this on the USDA website by address), and it must be your primary home. You cannot use a USDA loan for a vacation property, rental property, or home in a city or suburb that does not meet the rural definition.
USDA loans require a credit score of 580 or higher for most lenders, though some want 640+. You also need to show steady income and cannot have too much existing debt — your total monthly debt payments (including the new mortgage) cannot exceed 41% to 43% of your gross monthly income, depending on the lender. If you have missed payments, foreclosures, or bankruptcies in the past few years, you will have a harder time being approved.
Like VA loans, USDA loans do not require a down payment but do charge a fee for the may provide. The USDA may provide fee is typically 1% to 2% of the loan amount and is usually rolled into your loan. You also pay an annual mortgage insurance premium (around 0.35% to 0.8% of the loan per year), which is added to your monthly payment.
Conventional 0% down loans and what they cost
Some conventional lenders (banks and mortgage companies that do not use VA or USDA backing) will lend 100% of the home price, but this is less common than it was before 2008. When they do, the interest rate is higher — often 0.5% to 1% above what you would pay with a 10% or 20% down payment. Over 30 years, that difference adds up to tens of thousands of dollars.
Conventional 0% down loans also require private mortgage insurance (PMI), which protects the lender if you default. PMI typically costs 0.5% to 1.5% of the loan amount per year, added to your monthly payment. You keep paying PMI until you have paid down the loan to 80% of the home's value — which takes years if you started with 0% down. Once you reach 80%, you can request that PMI be removed, but you have to ask; it does not stop automatically.
To get a conventional 0% down loan, you usually need a credit score of 620 or higher, a debt-to-income ratio below 43%, and proof of stable income. Some lenders want to see 2 years of tax returns if you are self-employed. The process is the same as any other mortgage: you submit an process, the lender orders an appraisal, and you go through underwriting before closing.
Why closing costs still matter even with 0% down
Closing costs are the fees you pay to finalize the loan — appraisal, title search, title insurance, attorney fees, and lender fees. They typically run 2% to 5% of the home price. If you are buying a $300,000 home, closing costs could be $6,000 to $15,000. These costs come out of your pocket at closing, even if you put 0% down on the home itself.
Some buyers negotiate with the seller to cover part or all of the closing costs. This is called a seller concession. The seller agrees to pay your closing costs in exchange for you offering a higher purchase price or a faster closing date. Not all sellers will do this, and it depends on the local market — in a buyer's market (more homes for sale than buyers), sellers are more willing; in a seller's market (more buyers than homes), they are less likely.
If you cannot negotiate closing costs and do not have cash to pay them, some lenders will roll them into your loan. This means you borrow the closing cost money and pay interest on it over 30 years, which makes it more expensive in the long run.
How your credit score and debt affect 0% down approval
When you put 0% down, lenders scrutinize your credit and income more carefully because they have no equity cushion. If the home value drops and you stop paying, the lender loses money when ready. This means your credit score, payment history, and existing debt matter more than they would if you were putting 20% down.
Most lenders want a credit score of at least 580 to 620 for a 0% down loan. If you have late payments, collections accounts, or a recent bankruptcy, you may not be approved, or you may be approved only at a much higher interest rate. Your debt-to-income ratio — the percentage of your gross monthly income that goes to debt payments — usually cannot exceed 43% to 50%, depending on the lender and loan type. This includes car loans, credit card payments, student loans, and the new mortgage payment.
Lenders also want to see stable employment. If you have changed jobs frequently, been unemployed recently, or are self-employed, you may need to provide extra documentation like 2 years of tax returns or a letter from your employer confirming your position and salary.
Comparing 0% down to putting money down
The table below shows how a 0% down loan stacks up against putting 10% or 20% down. The key difference is that 0% down means a higher interest rate, mortgage insurance, and a larger monthly payment. However, if you are may be able to access for a VA or USDA loan, the terms are often better than a conventional 0% down loan because those programs were designed to make homeownership possible without years of saving.
| Factor | 0% Down | 10% Down | 20% Down |
|---|---|---|---|
| Interest Rate | Higher (0.5–1% above 20% down) | Middle | Lowest |
| Mortgage Insurance | Yes (PMI or may provide fee) | Yes (PMI) | No |
| Monthly Payment | Highest | Middle | Lowest |
| Total Cost Over 30 Years | Highest | Middle | Lowest |
| Lender Requirements | Stricter credit and income checks | Standard checks | Most flexible |
Even a 10% down payment significantly lowers your monthly payment and total cost compared to 0% down. However, the choice depends on your situation: if you are may be able to access for a VA or USDA loan, the trade-off is different because those programs often have better terms than conventional 0% down loans. If you are looking at a conventional 0% down loan and have savings, putting down 10% or 20% usually saves you enough money over time to make it worth using your savings.
Frequently Asked Questions
Do I have to pay closing costs upfront if I have 0% down?
Yes, closing costs are separate from the down payment and typically must be paid at closing. However, you can ask the seller to cover them (a seller concession), or you can ask the lender to roll them into your loan, which means you borrow the money and pay interest on it over time.
What happens to my monthly payment if I put 0% down instead of 10%?
Your monthly payment will be higher because you are borrowing more money and paying mortgage insurance. On a $300,000 home, the difference could be $200 to $400 per month, depending on interest rates and the type of loan. Over 30 years, that adds up to $72,000 to $144,000 more.
Can I get a 0% down loan if I have bad credit?
It is harder but not impossible. Most lenders want a credit score of at least 580 to 620. If your score is lower, you may be denied, or approved only at a much higher interest rate. Working with a credit counselor to improve your score before explore can help, or you could explore VA or USDA loans if you are may be able to access, as some have slightly more flexible credit requirements.
If I get a 0% down loan, can I remove the mortgage insurance later?
With conventional loans, yes — once you have paid the loan down to 80% of the home's value, you can request PMI be removed. With VA loans, there is no mortgage insurance to remove. With USDA loans, the annual mortgage insurance premium stays for the life of the loan if you put 0% down, though it can be removed if you later refinance with a down payment.
Is a 0% down loan a good idea if I have savings?
It depends on your situation. If you have a VA or USDA loan available, the terms are often good enough that keeping your savings for emergencies makes sense. If you are looking at a conventional 0% down loan, putting down 10% or 20% usually saves you enough money over time to make it worth using your savings, unless you need that money for other reasons.