One of the most persistent myths in real estate is that you need a 20% down payment to buy a home. The reality is that there are several federally backed programs and local grants that allow eligible buyers to purchase a home with absolutely zero money down.

Option 1: VA Loans (For Military & Veterans)

If you are an active-duty service member, veteran, or eligible surviving spouse, the VA loan is arguably the best mortgage product on the market. Backed by the Department of Veterans Affairs, it offers:

  • 0% Down Payment: You can finance 100% of the home's purchase price.
  • No PMI: Unlike other low-down-payment loans, VA loans do not require Private Mortgage Insurance.
  • Competitive Rates: VA loans typically offer lower interest rates than conventional mortgages.

Keep in mind that while there is no down payment, you will likely need to pay a one-time VA Funding Fee, which can be rolled into the total loan amount.

Calculate Your VA Loan

Want to see what a 0% down VA loan looks like? Use our FHA & VA Calculator to run the numbers, including the funding fee.

Option 2: USDA Loans (For Rural Buyers)

You don't need to be a farmer to get a USDA loan. The U.S. Department of Agriculture backs 100% financing (zero down) loans for buyers purchasing homes in designated "rural" and suburban areas.

  • Location matters: The home must be located in a USDA-eligible area. Many suburbs just outside major cities qualify.
  • Income limits: Your household income cannot exceed 115% of the median income for the area.
  • Fees: USDA loans require an upfront guarantee fee and an annual fee (similar to mortgage insurance).

Option 3: Down Payment Assistance (DPA) Grants

If you don't qualify for a VA or USDA loan, you can still buy a home with no money out of pocket by pairing an FHA or Conventional loan with a Down Payment Assistance (DPA) program. Every state, and many cities, have local housing finance agencies that offer grants or forgivable loans to cover your 3% to 3.5% down payment.

These programs are typically aimed at first-time homebuyers and usually require you to take a brief homebuyer education course. To find programs near you, search for your state's Housing Finance Agency (HFA).

Don't Forget Closing Costs

While you can buy a house with zero down payment, you still have to pay closing costs (lender fees, title insurance, appraisals), which typically range from 2% to 5% of the loan amount. To truly bring zero cash to closing, you will need to negotiate for the seller to pay your closing costs (known as "seller concessions") or roll them into your loan if the program allows.