How to Buy a House with No Money Down

Dreaming of owning a home but struggling to come up with a down payment? You’re not alone. Fortunately, several mortgage options allow you to buy a home with little or no money down. These loans can make homeownership accessible even if your savings are limited. Let’s explore the most common programs that support zero or low down payments—and how you can take advantage of them.

No Down Payment Mortgage Options

There are two government-backed mortgage programs that allow qualified buyers to purchase a home with no money down: USDA Loans and VA Loans.

USDA Loans

If you’re open to living in a rural or suburban area, a USDA loan could be the perfect fit. These loans are designed to help moderate-income buyers in eligible geographic areas purchase homes with no down payment required.

• The property must be located in a designated USDA-eligible area.
• Income must be below 115% of the area median income.
• Typically requires a credit score of 640 or higher.
• Debt-to-income ratio should be 45% or less.

Use the USDA eligibility map to see if your potential home qualifies, or check out our full USDA loan guide.

VA Loans

Available to veterans, active-duty military, and some members of the National Guard or Reserves, the VA loan is one of the most powerful zero-down mortgage tools available.

• No down payment required
• No private mortgage insurance (PMI)
• Includes a one-time VA funding fee (typically 2.15%)
• Can be used to buy a home, condo, or even build with a VA Construction Loan

To qualify, you must meet minimum service requirements—generally 90 days of active duty during wartime, 181 days during peacetime, or six years in the Guard or Reserves. Check your VA loan eligibility here.

Low Down Payment Alternatives

If you don’t qualify for a USDA or VA loan, you may still be eligible for a mortgage with a low down payment. These include:

Conventional Loans

• Minimum down payment of 3% for qualified buyers
• PMI is required until you reach 20% equity
• Ideal for borrowers with strong credit profiles

FHA Loans

• Requires just 3.5% down
• Lower credit score requirements than conventional loans
• Includes mortgage insurance for the life of the loan

To learn more about options in your state, visit our Down Payment Assistance Programs page.

Final Thoughts

Don’t let a lack of savings hold you back from homeownership. With programs like USDA and VA loans, you can purchase a home with no money down. Even low down payment mortgages make buying more achievable than ever.

Ready to explore your options? Apply for pre-approval today or call 843-640-1820 to speak with a local expert.

The Local Ledger is not affiliated with or acting on behalf of FHA, VA, USDA, or any federal government agency.