No Money Down Loans

Think you need a large down payment to buy a home? Think again. Several loan programs allow qualified buyers to purchase with little or no money down.

Think you need a large down payment to buy a home? Think again. Several loan programs allow qualified buyers to purchase with little or no money down.

VA Loans (0% Down)

Available to active-duty military, veterans, and surviving spouses. VA loans require no down payment and no private mortgage insurance (PMI). They typically offer competitive interest rates. If you qualify, this is one of the best mortgage products available.

USDA Loans (0% Down)

Designed for buyers in eligible rural and suburban areas. USDA loans require no down payment and offer low rates. Income limits apply, and the property must be in a USDA-eligible zone (many suburban areas qualify — check the USDA map).

FHA Loans (3.5% Down)

Federal Housing Administration loans require just 3.5% down for buyers with a credit score of 580 or higher. FHA loans are more flexible with credit requirements and debt-to-income ratios. Note: FHA loans require mortgage insurance premium (MIP) for the life of the loan if you put less than 10% down.

Conventional 97 (3% Down)

Fannie Mae and Freddie Mac offer conventional loans with just 3% down for first-time buyers. PMI is required but can be removed once you reach 20% equity. No upfront mortgage insurance like FHA.

Down Payment Assistance Programs

Many state and local agencies offer grants and low-interest loans to help buyers with down payments. Programs vary widely by location — your agent or lender can help identify what’s available in your area.

The Bottom Line

Zero-down or low-down options exist and are legitimate paths to homeownership. The key is to work with a lender who knows these programs and can match you with the best option for your situation.