How to Buy a House with No Down Payment in 2026?

Understanding Whether You Can Buy a House With No Down Payment

Many first-time buyers ask the same question: can you buy a house with no down payment and still get approved for a mortgage that fits your budget? The short answer is that it is sometimes possible, but the path depends on the loan program, your eligibility, your credit profile, your income stability, and the property itself. A zero-down home purchase is not a loophole; it is typically a structured benefit offered through specific government-backed or specialized programs that shift some of the lender’s risk. When a lender finances 100% of the purchase price, it becomes more sensitive to your ability to repay, the home’s appraisal, and your overall debt obligations. That’s why “no money down” does not mean “no requirements.” In practice, you may avoid a down payment while still needing funds for closing costs, prepaid taxes and insurance, inspections, appraisal fees, moving expenses, and an emergency reserve after you get the keys.

The phrase “no down payment” can also be misunderstood. Some buyers interpret it as paying nothing out of pocket at all, but most transactions still involve cash at closing unless you qualify for grants, seller concessions, or lender credits that cover those costs. Even then, there are tradeoffs: a lender credit may come with a slightly higher interest rate, and seller concessions are capped by loan type and must be supported by the appraisal. The biggest reality check is that a down payment is only one line item in the full cost of buying. Still, for households with strong income but limited savings, a 0% down mortgage can be a practical bridge into homeownership, especially when rent is high and saving is difficult. The key is to focus on total monthly housing cost, long-term affordability, and the rules that determine whether a zero-down option is truly available for your situation. If you’re looking for can you buy a house with no down payment, this is your best choice.

How Zero-Down Mortgages Actually Work

To understand how a lender can approve a mortgage with no down payment, it helps to think in terms of loan-to-value ratio (LTV). With a traditional mortgage, the down payment lowers the LTV and gives the lender a cushion if the borrower defaults and the home must be sold. With a zero-down loan, the LTV is 100%, so the lender relies more heavily on other risk controls. Those controls can include government guarantees (as with VA loans), insurance structures (as with some USDA loans and other programs), strict underwriting standards, and borrower eligibility rules. The appraisal becomes especially important because the lender is financing the entire purchase price; if the home appraises low, you may need to renegotiate, bring cash to close, or choose another property. In a competitive market, that appraisal risk is a bigger issue than many buyers expect. If you’re looking for can you buy a house with no down payment, this is your best choice.

Another way lenders manage risk is through pricing and mortgage insurance equivalents. Some zero-down options come with an upfront guarantee fee or ongoing fee that functions similarly to mortgage insurance, even if it is not labeled as PMI. Your credit score, debt-to-income ratio, and cash reserves can influence whether you qualify and what rate you receive. Even when you can buy a house with no down payment, the monthly payment may be higher than a comparable loan with 5% or 10% down because you are borrowing more principal and may pay additional fees. That doesn’t automatically make it a bad choice; it simply means the decision should be based on a full monthly payment comparison, how long you plan to stay in the home, and how quickly you can build equity through principal paydown and market appreciation. A responsible approach is to treat zero-down financing as a strategy, not a shortcut. If you’re looking for can you buy a house with no down payment, this is your best choice.

VA Loans: A Leading Way to Buy a House With No Down Payment

For eligible service members, veterans, and certain surviving spouses, VA loans are often the most straightforward answer to whether you can buy a house with no down payment. VA financing is designed to expand access to homeownership by providing a federal guarantee to approved lenders. That guarantee reduces lender risk and enables 0% down financing for many borrowers, sometimes with more flexible credit standards than conventional mortgages. VA loans also have limits and rules, but they are widely regarded as one of the strongest low-cash options because they do not require monthly private mortgage insurance in the way many low-down-payment loans do. Instead, most borrowers pay a VA funding fee, which may be financed into the loan amount, and some borrowers may be exempt from that fee depending on disability status and other factors. If you’re looking for can you buy a house with no down payment, this is your best choice.

Even with a VA loan, you should plan for closing costs and prepaid items, though seller concessions can help and are often negotiated. The property must meet VA minimum property requirements, which are intended to ensure the home is safe, structurally sound, and sanitary. That can affect how competitive you are when bidding on homes that need significant repairs, because the seller may not want to fix issues required by the VA appraisal. Still, many buyers successfully use VA loans in ordinary transactions, including for single-family homes, certain condos, and multi-unit properties when the borrower will occupy one unit. If you are eligible, it is worth comparing a VA loan against other options because the combination of 0% down, competitive rates, and no monthly PMI can produce a monthly payment that is surprisingly manageable. Eligibility and lender overlays vary, so getting preapproved and understanding your Certificate of Eligibility early can prevent delays later. If you’re looking for can you buy a house with no down payment, this is your best choice.

USDA Loans: Rural and Some Suburban Zero-Down Financing

USDA loans are another major program that can allow buyers to purchase with no down payment, provided the home is in an eligible area and the household meets income guidelines. The term “rural” is often misleading; many communities that feel suburban can qualify depending on USDA mapping, and eligibility can change over time. USDA loans are intended to promote homeownership in designated regions, and they offer 100% financing for qualified buyers. Like other government-backed programs, USDA loans have specific underwriting rules, including owner-occupancy requirements and standards for the property’s condition. They also include guarantee fees, typically an upfront fee and an annual fee, which function similarly to mortgage insurance and affect the total cost of the loan. If you’re looking for can you buy a house with no down payment, this is your best choice.

If you are asking whether you can buy a house with no down payment and you are open to a wider geographic search, USDA can be a powerful option. The tradeoff is that not every home will qualify, and your household income must generally fall within limits tied to the area median income and household size. In addition, USDA underwriting may be more documentation-heavy for some borrowers, especially those with variable income. However, the program can be especially valuable for buyers who have stable employment and good payment history but limited savings. Another practical advantage is that USDA loans often allow seller concessions within program limits, which can reduce the amount of cash needed at closing. A lender can also help you explore whether you can cover some closing costs with a lender credit, though that may affect your interest rate. The best approach is to run the numbers: compare USDA’s monthly payment and fees to FHA, conventional, and any local assistance programs available in your county or state. If you’re looking for can you buy a house with no down payment, this is your best choice.

Conventional Zero-Down Options and Specialized Programs

Outside VA and USDA, conventional mortgages generally require a down payment, but there are exceptions through specialized programs. Some lenders offer 0% down products for certain buyers, often paired with income limits, homebuyer education requirements, or geographic restrictions. There are also community lending initiatives and bank portfolio programs designed to expand access to credit, sometimes offering down payment assistance or a second loan that effectively covers the down payment. In these cases, the structure matters: it may be a true zero-down first mortgage, or it may be a first mortgage plus a subordinate lien such as a second mortgage or deferred-payment loan. The result can feel like buying with no down payment, but the costs and obligations differ depending on how the program is built. If you’re looking for can you buy a house with no down payment, this is your best choice.

When evaluating whether you can buy a house with no down payment through a conventional route, pay close attention to interest rate adjustments, mortgage insurance, and the long-term cost of borrowing. Conventional loans with very high LTV often require private mortgage insurance, and the PMI cost depends on credit score and other factors. Some programs reduce PMI or offer lender-paid PMI, but lender-paid PMI typically shows up as a higher interest rate. Another consideration is that conventional underwriting tends to be less forgiving of credit blemishes than some government-backed loans, even if the down payment is low or zero. You also need to consider how competitive your offer will be in a hot market. Sellers may prefer offers with larger down payments because they can be perceived as less likely to fall apart due to appraisal issues. If you pursue a specialized zero-down program, make sure you understand the required timelines, documentation, and whether there are resale restrictions or repayment clauses if you sell or refinance within a certain period. If you’re looking for can you buy a house with no down payment, this is your best choice.

Down Payment Assistance: Getting to “No Down Payment” Through Grants or Second Loans

Down payment assistance (DPA) programs are a common way buyers effectively reach a no-down-payment outcome, even if the primary mortgage still technically requires one. These programs can come from state housing finance agencies, city or county initiatives, nonprofit organizations, or employer-sponsored benefits. Assistance may be structured as a grant that does not need to be repaid, a forgivable loan that is erased after you live in the home for a set number of years, or a deferred-payment second mortgage that is repaid when you sell, refinance, or pay off the home. Because the structure varies, two buyers in the same neighborhood could both say they bought with no down payment while having very different long-term obligations. If you’re looking for can you buy a house with no down payment, this is your best choice.

If you are trying to figure out whether you can buy a house with no down payment using assistance, start by checking the eligibility rules: income limits, first-time buyer definitions, minimum credit scores, required homebuyer counseling, and purchase price caps. Many programs also restrict property type and require owner occupancy. The paperwork can be more involved, and timelines may be tighter because the assistance provider often needs to approve the file. Still, DPA can be a game-changer for buyers who can afford the monthly payment but struggle to accumulate cash while paying rent. Be cautious about layering costs: a second loan may increase your monthly debt obligations and affect your debt-to-income ratio, potentially reducing how much you can qualify for on the first mortgage. Also consider how the assistance interacts with seller concessions and lender credits, since there are limits on how much can be applied to certain closing costs. A lender familiar with local programs can help you stack benefits legally and efficiently without creating last-minute surprises at closing. If you’re looking for can you buy a house with no down payment, this is your best choice.

Closing Costs: The Hidden Barrier Even When the Down Payment Is Zero

Even if the loan program allows you to buy with no down payment, the transaction typically includes closing costs and prepaid items. Closing costs can include lender fees, title insurance, escrow services, recording fees, appraisal, credit report charges, and attorney fees in some states. Prepaids often include homeowners insurance, property taxes, and prepaid interest that covers the period between closing and your first mortgage payment. Depending on the price point and local fee structure, these costs can be several thousand dollars or more. Buyers sometimes focus so heavily on the down payment that they underestimate the cash needed to get to the closing table, which can lead to rushed decisions like accepting a higher interest rate for a lender credit without fully understanding the long-term impact. If you’re looking for can you buy a house with no down payment, this is your best choice.

For buyers asking can you buy a house with no down payment and truly minimize cash out of pocket, the typical tools are seller concessions, lender credits, and sometimes assistance programs that allow funds to be used toward closing costs. Seller concessions are negotiated as part of the purchase contract and are limited by loan type and occupancy status. They can reduce the amount you bring to closing, but they are not guaranteed and depend on market conditions and the seller’s willingness. Lender credits can also reduce cash to close, but they are usually a trade for a higher rate or different pricing. In some cases, you can structure a deal where the seller pays a portion of costs and the lender covers the rest through credits, but the contract price and appraisal must support the arrangement. A practical strategy is to request a detailed Loan Estimate early, then ask the lender to model scenarios: no points, lender credit, and different rate options. That way, you can see the monthly payment differences and decide what is sustainable, not just what is possible.

Credit, Income, and Debt-to-Income: What Lenders Scrutinize Most

When you pursue a mortgage with no down payment, lenders typically scrutinize your credit history, income reliability, and debt-to-income ratio (DTI) even more closely, because the loan has less built-in equity cushion. Credit score is not only a number; underwriters also look at the pattern of payments, the presence of collections, bankruptcies, or late payments, and how recently any negative events occurred. A borrower with a moderate score but stable, on-time payments over the past two years may be viewed differently than a borrower with a higher score but recent delinquencies or high revolving utilization. Employment history matters as well. Salaried income is generally straightforward, while self-employment, commission, overtime, or bonus income may require additional documentation and averaging over time. If you’re looking for can you buy a house with no down payment, this is your best choice.

If you are evaluating whether you can buy a house with no down payment, DTI is one of the most practical constraints because it directly affects approval and affordability. DTI compares your monthly debt obligations to your gross monthly income, including the proposed housing payment. Even if you qualify for a zero-down program, a high DTI can limit the price range you can afford or require you to pay off debts before closing. Strategies that often help include paying down revolving balances to reduce minimum payments, avoiding new credit inquiries during the mortgage process, and documenting all income sources properly. Cash reserves can also matter. Some programs or lenders like to see that you have money left after closing, even if you did not put money down, because reserves indicate the ability to handle unexpected repairs or temporary income disruptions. Building even a small buffer can improve approval odds and reduce stress after move-in, when costs like furniture, utilities, and maintenance tend to arrive quickly. If you’re looking for can you buy a house with no down payment, this is your best choice.

Property Eligibility, Appraisals, and Why “No Down” Deals Can Fail

Property-related issues are a common reason zero-down purchases run into trouble. Different loan programs have different property eligibility rules, and those rules are not just technicalities. VA and USDA loans, for example, have standards aimed at ensuring the home is livable and safe. If the appraiser notes peeling paint, missing handrails, roof problems, electrical hazards, or other concerns, the lender may require repairs before closing. That can become a negotiation point with the seller, and in a tight market, sellers may prefer an offer that is less likely to require repairs. Condominiums can add another layer of complexity because some programs require the condo project to be approved, and some buildings fail approval due to owner-occupancy ratios, litigation, or financial reserves. If you’re looking for can you buy a house with no down payment, this is your best choice.

Another major risk is the appraisal gap. When you can buy a house with no down payment, you may have less flexibility to cover a low appraisal with cash. If the home appraises below the purchase price, the lender bases the loan amount on the lower appraised value, and the difference must be resolved. Options include renegotiating the price, asking the seller to reduce the price or increase concessions within limits, disputing the appraisal with additional comparable sales, or walking away if contingencies allow. Some buyers try to waive appraisal contingencies to compete, but that can be dangerous in a zero-down scenario because it increases the chance you will need cash you do not have. A safer approach is to make strong offers in ways that do not rely on cash, such as flexible closing timelines, larger earnest money deposits (only if you can afford the risk), or choosing homes priced in line with recent comparable sales. Working with an agent who understands how appraisals behave in your neighborhood can reduce unpleasant surprises. If you’re looking for can you buy a house with no down payment, this is your best choice.

Pros and Cons of Buying With No Down Payment

The biggest advantage of purchasing with no down payment is speed: you can become a homeowner sooner instead of waiting years to save. That can be particularly valuable when rents are rising faster than wages or when you need stability for family, school districts, or commuting. Another advantage is liquidity. Keeping cash in reserve can help you handle repairs, job transitions, or medical expenses. In some cases, a zero-down buyer who maintains an emergency fund is in a safer position than a buyer who drains savings to make a down payment and then has nothing left for the inevitable first-year surprises, such as appliance failures or minor plumbing issues. If you have access to a strong program like a VA loan, the overall cost can be competitive, and the absence of monthly PMI can make the payment feel more manageable. If you’re looking for can you buy a house with no down payment, this is your best choice.

There are also meaningful drawbacks. When you can buy a house with no down payment, you start with little to no equity, making it easier to become “underwater” if home values decline or if you need to sell quickly after purchase. Your monthly payment is often higher because you are borrowing more, and you may pay program fees or insurance-like charges. You may also have less negotiating power with sellers who prefer buyers with larger down payments. Another risk is psychological: some buyers treat zero-down eligibility as a signal to buy at the top of their approved budget, leaving little room for maintenance, utilities, or life changes. A more sustainable approach is to buy below your maximum approval, keep reserves, and plan for long-term costs like roof replacement, HVAC servicing, and property tax increases. Zero-down financing can be an effective tool, but only when paired with conservative budgeting and realistic expectations about ownership responsibilities. If you’re looking for can you buy a house with no down payment, this is your best choice.

Strategies to Improve Approval Odds for a No-Down Home Purchase

Improving your odds starts with preparation. If you want to buy with no down payment, your preapproval should be strong and fully underwritten when possible, not just a quick prequalification. Provide pay stubs, W-2s, tax returns if needed, bank statements, and explanations for any credit issues upfront so the lender can identify potential obstacles early. If your credit score is borderline, focus on the fastest-impact actions: reducing credit card utilization, correcting reporting errors, and avoiding new debt. For income, consistency matters. If you recently changed jobs, keep records that show stable employment in the same field and document any variable pay in a way the underwriter can use. A clean, well-documented file can compensate for the higher perceived risk of a 100% financed purchase. If you’re looking for can you buy a house with no down payment, this is your best choice.

Offer structure can also help. When sellers worry about financing risk, you can strengthen your offer without adding a down payment by using earnest money strategically, shortening inspection timelines, or offering a flexible closing date. If you can buy a house with no down payment but need help with closing costs, ask your agent to craft a concession request that aligns with the market. In a seller’s market, a smaller concession may be more realistic, and you might combine it with a lender credit to cover the remaining costs. You can also target listings that have been on the market longer, where sellers may be more open to concessions. Another tactic is to choose homes that are likely to appraise: properties with recent comparable sales, standard layouts, and good condition. Avoiding appraisal drama is one of the most underrated ways to make a zero-down purchase succeed. Finally, keep reserves if possible. Even a few months of payments in savings can reassure underwriters and reduce your stress after closing. If you’re looking for can you buy a house with no down payment, this is your best choice.

Alternatives If You Can’t Get a True Zero-Down Mortgage

Not everyone will qualify for a true zero-down program, but that doesn’t mean homeownership is out of reach. Low down payment loans can still be powerful. FHA loans, for example, are well known for allowing a small down payment and for being more flexible with credit history than many conventional options. Conventional programs with 3% down exist for eligible first-time buyers, and some offer reduced mortgage insurance depending on income and property location. If your main barrier is cash, down payment assistance may bridge the gap, especially when combined with a low-down-payment first mortgage. In some cases, a family gift may be permitted, but you must follow documentation rules and confirm the loan program allows it. If you’re looking for can you buy a house with no down payment, this is your best choice.

If you are still asking can you buy a house with no down payment but keep running into eligibility issues, consider a stepwise plan. You might focus on improving credit and reducing debt for six to twelve months, then reapply. Another approach is to buy a less expensive home, which reduces both the cash needed for closing and the monthly payment. You can also explore house hacking with a multi-unit property if your loan program allows it and you are comfortable being a landlord; rental income can sometimes help you qualify, though rules vary and you should be conservative. Renting for a short period while saving can also make sense if it prevents you from stretching financially. The goal is not simply to purchase quickly; it is to purchase sustainably. A slightly delayed purchase that results in a lower payment, better terms, and more reserves can outperform a rushed zero-down purchase that leaves you financially tight. The right alternative depends on your timeline, local prices, and how stable your income is.

Long-Term Financial Impact: Equity, Refinancing, and Exit Planning

When you purchase with no down payment, your early years of ownership are shaped by amortization and market movement. In the first years of a mortgage, a larger share of your payment goes to interest rather than principal, which means equity builds more slowly than many buyers expect. That’s not inherently negative, but it does influence your flexibility. If you need to sell within a couple of years, transaction costs like agent commissions and closing fees can consume the limited equity you have. If home values rise, you may build equity faster, but relying on appreciation is speculative. The safest plan is to buy a home you can afford to keep for a while, even if the market cools. Maintenance also plays into long-term value; a home that is neglected can become expensive to repair and harder to sell. If you’re looking for can you buy a house with no down payment, this is your best choice.

Refinancing is another consideration. Many buyers who can buy a house with no down payment plan to refinance later when they have more equity or when rates drop. That can be a smart strategy, but it’s not guaranteed. Refinancing depends on credit, income, home value, and interest rate conditions at the time. If values fall or your income changes, refinancing may be difficult. Exit planning matters too. Think about what happens if you need to relocate for work, if your household grows, or if you face a temporary income disruption. Keeping an emergency fund and choosing a payment that leaves breathing room are critical. If you anticipate moving in a few years, consider the resale market for the home type and neighborhood, because liquidity affects your ability to sell without concessions. Zero-down homeownership can be successful when paired with a long horizon, conservative budgeting, and a plan to build reserves and equity over time through extra principal payments when feasible. If you’re looking for can you buy a house with no down payment, this is your best choice.

Making the Decision: When No-Down Buying Makes Sense

The decision to pursue zero-down financing should be based on your full financial picture, not just the appeal of keeping cash. If you have stable income, manageable debt, and a solid plan for ongoing expenses, being able to buy with no down payment can be a practical way to stop renting and start building long-term stability. It can be especially sensible when you qualify for a program with favorable terms and when your local rental market is expensive relative to mortgage payments. It can also make sense if you have strong job security and expect to stay in the home long enough to ride out normal market cycles. In those cases, the opportunity cost of waiting to save a down payment may be higher than the cost of financing more of the purchase price today. If you’re looking for can you buy a house with no down payment, this is your best choice.

On the other hand, if your budget is tight, your income is variable, or you have little savings beyond what it takes to close, a no-down purchase can increase financial stress. Homeownership is not only a monthly mortgage payment; it is repairs, maintenance, utilities, and sometimes higher taxes and insurance over time. If you’re weighing can you buy a house with no down payment, the best final check is a realistic monthly budget that includes reserves for maintenance and a cushion for unexpected events. Compare the all-in monthly cost of owning to renting, include conservative estimates for repairs, and consider how your payment would feel if property taxes or insurance rise. If the numbers still work, zero-down financing can be a legitimate and responsible route to homeownership. If they don’t, a low-down payment plan combined with savings goals may be the better choice, even if it takes longer.

Watch the demonstration video

This video explains whether it’s possible to buy a house with no down payment and what it really takes to qualify. You’ll learn about zero-down loan options, eligibility requirements, hidden costs you still need to budget for, and the pros and cons compared with making a down payment—so you can decide what’s realistic for your situation. If you’re looking for can you buy a house with no down payment, this is your best choice.

Isabella Reed

can you buy a house with no down payment

Isabella Reed is a certified mortgage advisor and housing consultant with over 10 years of experience helping first-time buyers navigate the property market. She specializes in simplifying complex financing options, explaining legal processes, and guiding clients through every step of purchasing their first home. Her writing combines practical tips with insider knowledge to help readers make confident and informed decisions.