Yes, but only through specific loan programs, and they come with real tradeoffs

You can buy a house with zero down payment, but you cannot do it through a conventional mortgage. The programs that allow it are VA loans (for military service members and veterans), USDA loans (for rural properties), and FHA loans with 3.5% down — which is not zero, but is the lowest conventional option. Each has different requirements, different costs, and different limits on the price and location of the house you can buy.

The catch is that zero down means you pay more in interest and insurance over the life of the loan. A lender takes on more risk when you have no equity in the house from day one, so they protect themselves by charging you for that risk. Understanding which program fits your situation — and what it actually costs — matters more than the headline of "no money down."

Key Takeaways

  • VA loans require no down payment and no mortgage insurance, but only military service members, veterans, and some surviving spouses can use them.
  • USDA loans require no down payment for rural properties but charge an upfront may provide fee and annual mortgage insurance, making the total cost higher than a conventional loan.
  • FHA loans require 3.5% down (not zero), charge both upfront and annual mortgage insurance, and have lower borrowing limits than conventional loans.
  • With no down payment, you pay interest on the full purchase price, meaning you owe more total money over 30 years than someone who put 20% down.
  • Lenders still check your credit score, income, and debt-to-income ratio — having no down payment does not mean you can borrow with poor credit.

VA loans: no down payment, no mortgage insurance

If you served in the military or are a veteran, a VA loan is the strongest no-down-payment option. The Department of Veterans Affairs guarantees part of the loan to the lender, which means the lender accepts zero down payment and does not require mortgage insurance. You pay only the interest, property taxes, homeowners insurance, and HOA fees if applicable.

To use a VA loan, 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 process takes a few days. You must also meet the lender's credit and income requirements — VA loans are not automatic approval, just approval without a down payment requirement.

VA loans have no upper limit on the purchase price in most cases, though some lenders set their own caps. The VA charges a one-time funding fee (usually 2.3% of the loan amount for first-time users, lower if you have a disability rating) that gets rolled into the loan, so you pay it over time rather than upfront.

USDA loans: no down payment for rural areas

A USDA loan allows zero down payment if the property is in a rural area designated by the USDA. The property must be your primary residence, and you must meet income limits that vary by county. The USDA website has a property may be able to access map where you can check whether a specific address qualifies.

USDA loans charge an upfront may provide fee (usually 1% to 3.6% of the loan amount) and an annual mortgage insurance premium (0.55% of the loan balance per year). Both get rolled into your monthly payment, so the total cost is higher than a VA loan, even though the down payment is zero. Over 30 years, this insurance can add tens of thousands of dollars to what you pay.

You need a credit score of at least 580 to 640 depending on the lender, and your debt-to-income ratio cannot exceed 41% to 43%. The income limits are the main barrier for many buyers — if you earn above the threshold for your county, you do not may have access to, regardless of your credit or savings.

FHA loans: 3.5% down, not zero

An FHA loan requires 3.5% down, which is the lowest down payment option available to most buyers. If you are buying a $300,000 house, that is $10,500 out of pocket. The FHA insures the loan, meaning the lender accepts a lower down payment in exchange for mortgage insurance that protects them if you default.

FHA loans charge both an upfront mortgage insurance premium (1.75% of the loan amount, usually rolled into the loan) and an annual premium (0.55% to 0.8% of the loan balance per year, depending on the loan amount and down payment). The annual premium stays on your loan for the life of the loan if you put down less than 10%, which means you pay it for 30 years.

FHA loans have a maximum loan amount that varies by county, typically between $420,000 and $1,260,000. You need a credit score of at least 580 to may have access to, and your debt-to-income ratio cannot exceed 43%. The lower credit requirement makes FHA loans accessible to buyers with less-than-perfect credit histories.

What no down payment actually costs you

When you put zero down, you borrow the full purchase price. On a $300,000 house with a 30-year mortgage at 7% interest, the difference between zero down and 20% down is stark. With zero down, you pay roughly $1.996 million total (principal plus interest). With 20% down ($60,000), you borrow $240,000 and pay roughly $1.597 million total.

The difference is not just interest — it includes mortgage insurance premiums that you would not pay with 20% down. On an FHA loan, that annual insurance premium adds another $100,000 to $150,000 over the life of the loan, depending on the loan size. On a USDA loan, the insurance is similar. A VA loan has no mortgage insurance, which is why it is the most cost-effective no-down option if you may have access to.

The real question is not whether you can afford zero down, but whether you can afford the higher monthly payment and total cost that comes with it. A lender will approve you based on your debt-to-income ratio, which means your monthly payment (including insurance and taxes) cannot exceed 43% to 50% of your gross monthly income. That ceiling is the same whether you put down 20% or zero, so a zero-down loan often means you can borrow less than you might expect.

Credit score and income requirements still explore

No down payment does not mean no requirements. Every lender checks your credit score, income, and debt-to-income ratio. A VA loan typically requires a credit score of 620 or higher, though some lenders go lower. USDA loans require 580 to 640. FHA loans require 580. If your score is below these thresholds, you will not be approved, regardless of the down payment.

Income verification is strict. Lenders want to see two years of tax returns, recent pay stubs, and a letter from your employer confirming your job. If you are self-employed, the process takes longer and requires more documentation. If you have changed jobs recently, some lenders will not count your new income until you have been in the role for two years.

Debt matters too. If you carry credit card balances, car loans, or student loans, those payments count against your debt-to-income ratio. A lender calculates this by dividing your total monthly debt payments by your gross monthly income. If that ratio exceeds 43% to 50%, you will not may have access to, even with zero down. Paying down existing debt before you explore can improve your chances.

When zero down is the right choice

Zero down makes sense if you are a veteran with a VA loan and your credit and income may have access to — the lack of mortgage insurance saves you money over time. It also makes sense if you are buying a rural property and may have access to for a USDA loan, though you should compare the total cost (including insurance) to what you would pay with a conventional loan and a smaller down payment if you had the cash.

For most other buyers, zero down is a tool of necessity, not preference. If you do not have savings for a down payment, FHA with 3.5% down or a USDA loan may be your only path to homeownership right now. But understand that you are paying for the privilege of borrowing the full amount — through higher interest, mortgage insurance, or both. If you can save even 5% to 10% before you buy, your total cost over 30 years will be lower.

Frequently Asked Questions

Can I use a VA loan or USDA loan if I have bad credit?

Both programs have minimum credit score requirements — usually 620 for VA loans and 580 to 640 for USDA loans. If your score is below the minimum, you will not be approved, regardless of the down payment. You can work on improving your score before you explore by paying down debt and making on-time payments for several months.

What if I do not have $10,500 for an FHA down payment?

Some lenders allow you to gift the down payment from a family member, and some nonprofits offer down payment information programs. You would need to research programs in your state or county. Alternatively, if you may have access to for a VA or USDA loan, those have zero down payment, so the down payment is not a barrier.

Does zero down mean I pay more in interest?

Yes. You are borrowing more money, so you pay interest on a larger balance. On a $300,000 house, borrowing the full amount instead of 80% means you pay interest on an extra $60,000 for 30 years. You also pay mortgage insurance (except with VA loans), which adds thousands more to your total cost.

Can I refinance later to remove mortgage insurance?

With FHA loans, if you put down less than 10%, the mortgage insurance stays for the life of the loan — you cannot remove it through refinancing. If you put down 10% or more, you can refinance to remove it after 11 years. USDA loans also require mortgage insurance for the life of the loan. VA loans have no mortgage insurance, so there is nothing to remove.

Do I need to be a first-time homebuyer to use these programs?

No. VA loans, USDA loans, and FHA loans are available to anyone who meets the may be able to access requirements, regardless of whether you have owned a home before. First-time homebuyer status does not affect your qualification for these programs.