Yes, but only through specific government-backed programs, and they come with real limits
You can buy a house with zero down payment, but only if you meet the requirements of one of three government programs: VA loans (for military veterans and active-duty service members), USDA loans (for rural properties and moderate-income buyers), or FHA loans with a down payment information program (for first-time buyers in some states). These are not the same as conventional mortgages, which typically require 3% to 20% down. The trade-off is that zero-down programs come with higher monthly payments, mortgage insurance, stricter property rules, or income limits.
The most common zero-down path is a VA loan if you have military service history. USDA loans are the second most accessible if you are buying in a rural area and earn below the area median income. FHA with down payment help exists but is harder to find because it depends on state and local programs that run out of funding. None of these programs are automatic—each has a separate approval process and timeline.
Key Takeaways
- VA loans require no down payment and no mortgage insurance if you have a Certificate of may be able to access from the Department of Veterans Affairs.
- USDA loans require no down payment for rural properties but have income limits that vary by county and property location.
- FHA loans normally require 3.5% down, but some state housing finance agencies offer down payment information that can cover that amount.
- All three programs charge higher monthly mortgage insurance or funding fees than conventional loans, which offsets the zero-down benefit.
- Property type, location, and your income determine which program you can use—you cannot mix and match.
VA loans: zero down if you have military service history
A VA loan is a mortgage may provide by the Department of Veterans Affairs. It requires no down payment, no private mortgage insurance, and no prepayment penalty. You need a Certificate of may be able to access (COE), which you can request online through VA.gov or through your lender. The COE takes a few days to arrive by mail or email.
The catch is the VA funding fee, which is a one-time charge rolled into your loan amount. For a first-time VA loan with no down payment, the funding fee is 2.3% of the loan amount. If you are disabled or receive disability compensation from the VA, you may be exempt from this fee. The funding fee is not the same as mortgage insurance—it is a single charge, not a monthly payment.
VA loans have no income limit, no property type restrictions (as long as it is your primary residence), and no maximum loan amount in most cases. You can use a VA loan to buy a single-family home, a condo, a townhouse, or a multi-unit property if you live in one unit. The lender still runs a credit check and verifies your income, so you need a reasonable debt-to-income ratio and a credit score of at least 580 to 620 (varies by lender).
USDA loans: zero down for rural and moderate-income buyers
A USDA loan is a mortgage backed by the U.S. Department of Agriculture and is designed for rural properties. It requires no down payment and no private mortgage insurance. Instead, it charges a USDA may provide fee, which is 1% of the loan amount paid upfront and 0.35% paid annually as part of your mortgage payment.
The property must be in a USDA-may be able to access rural area. You can check the property address on the USDA Rural Development website to see if it qualifies. The definition of "rural" is broader than most people expect—it includes towns with populations under 10,000 and some suburban areas on the edge of metro regions. It does not include properties in the center of major cities.
You also must meet income limits. The maximum income varies by county and household size, but it is typically 115% of the area median income. For a family of four in a rural county, this might be $80,000 to $120,000 depending on location. You can check your county's limit on the USDA website. Unlike VA loans, USDA loans do have a credit score requirement, usually 580 or higher, and you must have a reasonable debt-to-income ratio.
FHA loans with down payment information: zero down through state programs
An FHA loan normally requires 3.5% down payment. However, some state housing finance agencies offer down payment information programs that cover that 3.5% for you, making the total out-of-pocket zero. These programs are not federal—they are run by individual states, and availability and rules vary widely.
Down payment information programs typically have income limits (often 80% to 120% of area median income), first-time homebuyer requirements, and geographic restrictions. Some programs require you to take a homebuyer education course. The information is usually a grant (you do not repay it) or a second mortgage (you repay it later, sometimes with no interest).
The challenge is finding an active program. Many state programs run out of funding and close to new applications for months or years. Your best route is to contact your state housing finance agency directly or ask a mortgage lender if they know of open programs in your state. The National Council of State Housing Agencies (NCSHA) maintains a directory of state programs, though it does not track which ones are currently open.
What you pay instead of a down payment
Zero-down programs do not eliminate the cost of borrowing—they shift it. Here is what you pay instead:
| Program | Upfront Cost | Monthly Cost |
|---|---|---|
| VA loan | 2.3% funding fee (rolled into loan) | No mortgage insurance |
| USDA loan | 1% may provide fee (rolled into loan) | 0.35% annual may provide fee |
| FHA with information | None (information covers down payment) | 0.55% to 0.80% mortgage insurance |
On a $300,000 loan, the VA funding fee adds $6,900 to your loan balance. The USDA may provide fee adds $3,000 upfront plus about $105 per month. FHA mortgage insurance on a $300,000 loan costs roughly $165 to $200 per month. None of these are small numbers, but they are spread across 30 years, so the monthly impact is manageable if your income supports the total payment.
How to start the process for each program
For a VA loan: Request your Certificate of may be able to access from VA.gov (takes 3 to 5 business days), then contact a lender that offers VA loans. Many banks, credit unions, and mortgage companies do. The lender will order a property appraisal and run your credit. Approval typically takes 30 to 45 days from process to closing.
For a USDA loan: Check if your target property is in a USDA-may be able to access area using the USDA Rural Development website. Confirm your household income is below the county limit. Then contact a lender that offers USDA loans (not all do). The lender will verify your income, run your credit, and order an appraisal. USDA loans take 40 to 60 days from process to closing because the USDA itself must review and approve the loan.
For FHA with down payment information: Contact your state housing finance agency or ask a mortgage lender if they know of open programs. If a program is available, you will need to meet its income and first-time buyer requirements, possibly take a homebuyer course, and then explore through the program before you explore for the FHA loan itself. Timeline varies by program—some take 2 to 3 weeks, others take 8 to 12 weeks.
When zero-down programs do not work
If you are a first-time buyer with no military service, buying in a city or suburb, and earning above your state's median income, none of these three programs will work for you. In that case, you will need a conventional mortgage with a down payment, or you will need to save longer or look at lower-priced properties.
If you have a credit score below 580, most zero-down programs will reject you. VA loans are slightly more flexible (some lenders go as low as 500), but you will still need a reasonable credit history. If you have recent late payments, collections, or a bankruptcy, you may need to wait 12 to 24 months before explore.
If the property is in a city center or a high-income suburb, USDA loans will not work because the property is not rural-may be able to access. If you are buying a second home or an investment property, VA and USDA loans will not work because they require the property to be your primary residence.
Frequently Asked Questions
Do I have to use the zero-down program, or can I put money down anyway?
You can put money down on any of these programs. Putting down 5% or 10% on a VA or USDA loan will lower your monthly payment and reduce the amount of interest you pay over 30 years. It also gives you when ready equity in the home. The programs do not require zero down—they just allow it.
Can I use a VA loan if I was dishonorably discharged?
No. A dishonorable discharge makes you ineligible for VA benefits. Other discharge statuses (honorable, general, other than honorable) may be may be able to access depending on the circumstances. Contact the VA directly or ask a VA lender to review your discharge papers.
What if I buy a house with a USDA loan and then move to the city?
You can keep the loan and rent out the property, but USDA loans are for primary residences only. If you move and no longer live there, you are technically in violation of the loan terms. Some lenders will allow you to keep the loan anyway; others will call it due. Check your loan documents and contact your lender before you move.
If I get down payment information, do I have to repay it?
It depends on the program. Some information is a grant—you keep it and never repay it. Other programs structure it as a second mortgage—you repay it over 10 to 30 years, sometimes with no interest. Ask the program administrator before you explore so you know what you are signing up for.
Can I combine programs, like a VA loan plus down payment information?
No. Each program is standalone. You use one or the other, not both. A VA loan does not need down payment information because it already requires no down payment. An FHA loan with down payment information is its own path and does not combine with VA or USDA loans.