You may be able to buy a house with no down payment if you qualify for a VA-backed or USDA home loan. Your affordable price will still depend on your income, monthly debts, interest rate, property taxes, homeowners insurance and the loan program’s fees.
A $0-down mortgage finances the entire purchase price instead of requiring you to contribute a percentage upfront. It can reduce the amount of cash needed to buy a home, but it generally creates a larger loan balance and monthly payment than making a down payment.
The income estimates below use an illustrative VA loan because VA loans do not charge monthly mortgage insurance. You can use our home affordability calculator to enter your own income, debts and estimated housing expenses.
$0-Down Mortgage Basics
| Topic |
What to Know |
| Loans that may allow $0 down |
VA and USDA loans |
| Who may qualify |
VA-eligible borrowers or income- and location-eligible USDA borrowers |
| Cash you may still need |
Closing costs, prepaid expenses, inspections, moving costs and emergency savings |
| Program fees |
A VA funding fee for many VA borrowers or USDA upfront and annual guarantee fees |
| Occupancy |
VA and USDA purchase loans generally finance primary residences |
| Main affordability factor |
The complete monthly housing payment plus your other required debt payments |
Estimate Assumptions
The estimates on this page assume: A 30-year fixed VA loan at 6.55%, $0 down, a financed 2.15% first-use VA funding fee, annual property taxes equal to 1.10% of the home price, annual homeowners insurance equal to 0.35% of the home price, no homeowners association dues and no other monthly debt. The income table limits housing expenses to 28% of gross monthly income.
The 6.55% illustrative rate is the national average for a 30-year fixed mortgage reported by Freddie Mac on July 16, 2026. These assumptions create consistent examples. They are not universal loan terms, debt-to-income limits or approval amounts.
Can You Really Buy a House With No Down Payment?
Yes. VA and USDA loan programs can finance up to 100% of an eligible home purchase, subject to the borrower, property and lender meeting the applicable requirements.
A VA-backed purchase loan may require no down payment when the sales price does not exceed the home’s appraised value. You must have eligible VA home loan entitlement, meet the lender’s credit and income requirements and plan to occupy the property as your home.
USDA Rural Development also offers home loans that typically require no down payment. The Single Family Housing Guaranteed Loan Program works through approved private lenders. The Section 502 Direct Loan Program is administered by the USDA and serves eligible low- and very-low-income applicants.
First-time buyer status alone does not make you eligible for a no-down-payment loan. VA eligibility generally depends on qualifying military service or another eligible status. USDA eligibility depends on factors that include household income, the property’s location and primary-residence occupancy.
Conventional and FHA loans require a borrower contribution toward the purchase price unless an eligible gift, grant or assistance program provides the funds. That arrangement may result in little or no personal cash being used for the down payment, but the mortgage itself is not a $0-down loan.
Which Loans Allow $0 Down?
VA Loans
A VA loan may be available to eligible veterans, active-duty service members, certain National Guard and Reserve members and some surviving spouses. You generally need a Certificate of Eligibility, sufficient income and credit, and a property you intend to occupy as your primary residence.
The Department of Veterans Affairs does not establish one universal minimum credit score for VA-backed loans. The lender evaluates your credit, income, residual income, debt obligations and complete loan application.
A down payment may still be needed in some situations. For example, the no-down-payment feature generally applies only when the purchase price does not exceed the VA appraisal. A borrower with limited remaining entitlement may also need to contribute money toward certain purchases.
VA loans do not require monthly private mortgage insurance or an FHA-style mortgage insurance premium. Many borrowers instead pay a one-time VA funding fee.
For a first use of the VA loan benefit with less than 5% down, the funding fee is 2.15% of the base loan amount. The fee rises to 3.3% for a subsequent use with less than 5% down. Some borrowers are exempt from the fee, including certain borrowers receiving compensation for a service-connected disability.
The funding fee can generally be paid at closing or financed into the mortgage. Financing it reduces the cash needed at closing but increases the loan balance and the amount of interest paid over time.
USDA Loans
A USDA loan can provide 100% financing for an eligible primary residence in an area the USDA classifies as rural. An eligible area does not necessarily need to be isolated. Many small towns, suburbs and communities outside major urban centers may qualify.
The USDA Single Family Housing Guaranteed Loan Program is available through approved lenders. Household income generally cannot exceed 115% of the applicable median household income, although the actual limit varies by location and household size.
USDA guaranteed loans also have property and occupancy rules. The home must be in an eligible area, serve as your primary residence and meet the program’s requirements.
For fiscal year 2026, USDA guaranteed loans charge a 1% upfront guarantee fee and a 0.35% annual fee. The upfront fee can generally be financed into the mortgage. The annual fee is calculated from the scheduled unpaid principal balance and is collected as part of the monthly payment.
The Section 502 Direct Loan Program also typically requires no down payment. It has lower income limits, separate area loan limits and a direct application process through USDA Rural Development. Payment assistance may reduce the effective interest rate for qualifying borrowers.
Review USDA down payment requirements for more information about eligible borrowers, properties and expenses.
What Does $0 Down Actually Cost?
A no-down-payment mortgage removes the required upfront contribution toward the purchase price. It does not eliminate the other costs of buying and financing a home.
A Larger Loan Balance
Putting $0 down means borrowing the full purchase price. If a program fee is financed, the starting mortgage balance can be higher than the home’s price.
A larger balance produces a higher principal-and-interest payment when the rate and term remain the same. It also increases the total interest paid if you keep the mortgage for the full term.
Funding or Guarantee Fees
Many VA borrowers pay a funding fee. USDA guaranteed loans charge both an upfront guarantee fee and an annual fee.
These charges are different from conventional private mortgage insurance. VA loans have no monthly mortgage insurance. USDA’s annual guarantee fee is generally included in the monthly payment.
Closing Costs and Prepaid Expenses
You may still need money for lender fees, title services, recording charges, prepaid interest, initial escrow deposits and other transaction costs. Inspections and moving expenses may also be paid outside the mortgage closing.
On a VA purchase loan, only the VA funding fee can be financed into the mortgage. Other closing costs must be paid at closing unless they are covered through a permitted seller credit, lender credit, gift or assistance program.
USDA may permit certain eligible costs to be included in the loan when the property’s appraised value supports the higher amount. You should not assume the appraisal will provide enough room to finance those expenses.
Less Immediate Equity
A $0-down borrower begins with little equity unless the property appraises for more than the purchase price. Financing a program fee can also create an initial mortgage balance that exceeds the purchase price.
This can make selling soon after the purchase more difficult. Real estate commissions, transfer taxes and other selling expenses may exceed the equity available if the home has not appreciated or the loan balance has not fallen substantially.
How Much House Does $0 Down Get You at Different Income Levels?
The following table limits the estimated housing payment to 28% of gross monthly income. It uses the VA assumptions listed above and assumes the borrower has no other monthly debt.
The figures are examples rather than maximum approval amounts. Auto loans, student loans, credit card minimums, personal loans, child support and other obligations can reduce affordability. Higher taxes, insurance premiums or HOA dues would also lower the estimated home price.
| Annual Income |
28% Monthly Housing Budget |
Estimated Home Price With $0 Down |
| $50,000 |
$1,167 |
$152,000 |
| $60,000 |
$1,400 |
$182,000 |
| $75,000 |
$1,750 |
$227,000 |
| $90,000 |
$2,100 |
$273,000 |
| $100,000 |
$2,333 |
$303,000 |
| $120,000 |
$2,800 |
$364,000 |
| $150,000 |
$3,500 |
$455,000 |
A lender will also examine your total debt-to-income ratio and, for a VA loan, your residual income. Residual income measures the money remaining after major monthly obligations and varies by household size, location and loan amount.
$0 Down vs. a Small Down Payment
A small down payment reduces the loan amount and monthly principal-and-interest payment. On a VA loan, putting at least 5% down also reduces the funding fee for borrowers who are not exempt.
| VA Purchase Down Payment |
First-Use Funding Fee |
Subsequent-Use Funding Fee |
| Less than 5% |
2.15% |
3.30% |
| At least 5% |
1.50% |
1.50% |
| At least 10% |
1.25% |
1.25% |
The tradeoff is liquidity. Putting most of your available savings into a down payment can leave too little for closing costs, repairs, moving expenses or an emergency fund.
Consider how each option affects:
- The amount due at closing
- The starting loan balance
- The monthly mortgage payment
- Program fees or mortgage insurance
- The savings remaining after closing
- Your initial home equity
A larger down payment is not automatically the right choice when it would exhaust your savings. A $0-down loan is also not automatically preferable because it preserves cash. Compare the complete costs and the effect on your monthly budget.
Worked Example: Buying a $250,000 Home With $0 Down
Assume an eligible borrower uses the VA loan benefit for the first time to buy a $250,000 home with no down payment. The borrower is not exempt from the 2.15% funding fee and finances it into the mortgage.
| Cost |
Amount |
| Purchase price |
$250,000 |
| Down payment |
$0 |
| Base loan amount |
$250,000 |
| Financed VA funding fee |
$5,375 |
| Starting loan balance |
$255,375 |
| Interest rate and term |
6.55% for 30 years |
| Principal and interest |
$1,623 per month |
| Property taxes |
$229 per month |
| Homeowners insurance |
$73 per month |
| Monthly mortgage insurance |
$0 |
| HOA dues |
$0 |
| Estimated total housing payment |
$1,925 per month |
A $1,925 housing payment would equal about 28% of gross monthly income for a household earning approximately $82,500 per year. That calculation assumes the household has no HOA dues and does not include maintenance, utilities or other monthly debts.
A borrower exempt from the VA funding fee would begin with a $250,000 loan instead of a $255,375 loan. At the same illustrative rate, the principal-and-interest payment would be lower.
The borrower may still need cash for closing costs, prepaid taxes and insurance, inspections and moving expenses. The exact amount would appear on the Loan Estimate and Closing Disclosure.
How to Get Approved With No Down Payment
1. Confirm That You Qualify for a Program
For a VA loan, verify your eligibility and obtain a Certificate of Eligibility. For a USDA loan, check the property address and household income through USDA’s eligibility resources.
2. Estimate the Complete Housing Payment
Include principal, interest, property taxes, homeowners insurance, mortgage insurance or program fees, flood insurance when required and HOA dues. Maintenance and utilities should also be included in your personal budget even though they are not part of the mortgage payment.
3. Review Your Existing Debts
Lenders consider required monthly obligations when determining how much you can borrow. These may include auto loans, student loans, credit card minimum payments, personal loans, alimony and child support.
4. Check Your Credit
VA does not set one universal minimum credit score, but lenders apply their own credit requirements. USDA lenders also evaluate credit history and the overall underwriting result.
Review your credit reports for incorrect information and avoid taking on substantial new debt while preparing to apply.
5. Document Your Income and Assets
Expect to provide income, employment, bank and other financial records. A lender may need to verify funds for closing costs and reserves even when the mortgage does not require a down payment.
6. Budget for Closing Costs
Estimate lender fees, title costs, prepaid expenses, inspections and moving costs early. Do not assume that a seller credit or assistance program will cover them until the arrangement has been reviewed and documented.
7. Complete the Appraisal and Property Review
The property must meet the applicable program requirements. With a VA loan, the no-down-payment feature generally applies only when the sales price does not exceed the appraised value.
8. Compare $0 Down With Other Options
Compare the monthly payment, cash due at closing and savings remaining under $0-down and small-down-payment scenarios. The home affordability calculator can show how changing the loan amount or housing expenses affects the result.
Bottom Line
A $0-down mortgage can remove a major upfront barrier to buying a home, but true no-down-payment financing is generally limited to eligible VA and USDA borrowers.
You may still need money for closing costs, prepaid expenses, inspections and reserves. Financing the entire purchase price also creates a larger starting balance and leaves little immediate equity.
Base your price range on the complete monthly payment, your required debt payments and the savings you will retain after closing. The amount a lender approves may be higher than the payment that fits comfortably within your household budget.
FAQ
Is $0 Down a Good Idea?
A $0-down mortgage can make sense when the monthly payment fits your budget and you retain enough savings for closing costs, repairs and emergencies. The tradeoffs include a larger loan balance, a higher monthly payment and limited initial equity.
Can First-Time Buyers Get a $0-Down Mortgage?
Yes. A first-time buyer who qualifies for a VA or USDA loan may be able to buy with no down payment. First-time buyer status by itself does not establish eligibility for either program.
Do You Need Great Credit for a No-Down Loan?
You do not need perfect credit. The VA does not establish one universal minimum credit score for VA-backed loans, although lenders apply their own standards. USDA lenders also evaluate credit history and the complete loan file.
Does $0 Down Mean $0 at Closing?
No. You may still owe closing costs, prepaid property taxes and insurance, inspection costs, appraisal-related expenses and other charges. Permitted seller credits, lender credits, gifts or assistance may reduce the amount, but they are not guaranteed.
Can You Use Down Payment Assistance With a Zero-Down Loan?
An eligible assistance program may provide funds for closing costs or other permitted expenses. The mortgage program and assistance provider will determine how the funds can be used and documented.
Can You Buy Any House With No Money Down?
No. The borrower and property must qualify for the loan program. USDA requires the property to be in an eligible area. VA and USDA purchase loans generally require primary-residence occupancy, and the property must satisfy appraisal and condition requirements.
Can Closing Costs Be Included in a No-Down-Payment Loan?
A VA purchase loan permits the VA funding fee to be financed, but other closing costs cannot simply be added to the loan amount. USDA may permit certain eligible costs to be financed when the appraised value supports the higher loan amount.
Do VA Loans Have PMI?
No. VA loans do not require monthly private mortgage insurance or an FHA mortgage insurance premium. Many VA borrowers instead pay a one-time funding fee, although some borrowers are exempt.
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