Yes, but only through specific loan programs designed for this

You can get a mortgage without a down payment, but you cannot walk into most banks and ask for one. Instead, you borrow through a program that was created specifically to help people who do not have savings set aside. The most common are VA loans (for military members and veterans), USDA loans (for rural properties), and FHA loans with a 3.5% down payment requirement — which is not zero, but close enough that some people count it as "no money down" because the seller or lender sometimes covers it.

The trade-off is real: when you put nothing down, the lender takes on more risk if you stop paying, so they charge you more in interest and require you to pay mortgage insurance — an extra monthly fee that protects the lender, not you. You will also have a harder time getting approved if your credit score is low or your income is unstable. The lender needs to be very confident you can actually make the payments.

Key Takeaways

  • VA loans and USDA loans are the only mortgages with a true zero down payment option, and they are limited to specific groups of borrowers.
  • FHA loans require 3.5% down, but some sellers or lenders will pay this amount on your behalf, making it feel like zero down.
  • No-down-payment mortgages come with higher interest rates and mandatory mortgage insurance that adds to your monthly payment.
  • Your credit score, income, and debt-to-income ratio matter more when you have no down payment, because the lender has no cushion if you default.
  • You will need to prove you can afford the monthly payment, property taxes, insurance, and mortgage insurance combined.

VA loans: zero down for military and veterans

If you served on active duty, are currently serving, or are a surviving spouse of a service member, you may be able to borrow through the VA loan program. This is a mortgage backed by the Department of Veterans Affairs, and it requires zero down payment. You do not need to have served for a specific length of time — even 90 days of active duty during wartime or 181 days during peacetime can make you may be able to access, though the rules vary by era.

To use a VA loan, you first get a Certificate of may be able to access from the VA. You can request this online through VA.gov, by mail, or through your lender — most lenders will help you get it. Once you have the certificate, you can shop for a lender. VA loans do not require mortgage insurance, which saves you money each month compared to other no-down-payment options. You will still pay a one-time VA funding fee (usually 2% to 3.6% of the loan amount), but this can be rolled into the loan itself so you do not pay it upfront.

USDA loans: zero down for rural properties

The USDA Rural Development loan program offers zero-down mortgages for homes in rural areas. The USDA defines "rural" broadly — it includes small towns and areas outside city limits, not just farms. You can check whether a specific address is in a USDA-may be able to access area on the USDA website before you start house hunting.

To be approved, your household income must fall below a certain limit (this varies by county and household size), and you must be unable to get a conventional loan elsewhere. Like FHA loans, USDA loans require mortgage insurance, which is added to your monthly payment. The upside is that USDA loans often have lower interest rates than FHA loans, and the mortgage insurance can sometimes be removed after you have paid down the loan enough.

FHA loans: 3.5% down as the closest alternative

An FHA loan is not zero down, but it is close: the minimum down payment is 3.5% of the home price. On a $200,000 home, that is $7,000. For many people who have some savings but not the traditional 10% to 20%, this is the most realistic path to homeownership.

FHA loans are insured by the Federal Housing Administration, which means the government backs the loan if you default. Because of this backing, lenders are willing to work with people who have lower credit scores (some lenders accept scores as low as 580) or higher debt. You will pay mortgage insurance for the life of the loan if you put down less than 10%, and for at least 11 years if you put down 10% or more. Sometimes a seller will pay your down payment or closing costs as part of the sale agreement, which can bring your out-of-pocket cost to zero — but this is negotiation between you and the seller, not a feature of the loan itself.

What happens to your monthly payment without a down payment

When you borrow the full purchase price, your monthly payment is higher because you are borrowing more money. On top of that, you pay mortgage insurance every month. For an FHA loan, mortgage insurance is typically 0.55% to 0.8% of your loan amount per year, split into 12 monthly payments. For a USDA loan, it is usually 0.35% to 0.4% per year. VA loans have no mortgage insurance at all.

A lender will check whether you can afford all of this before approving you. They use your debt-to-income ratio — the total of all your monthly debt payments (car loans, credit cards, student loans, and the new mortgage) divided by your gross monthly income. Most lenders want this to be 43% or lower, though some will go to 50% if you have strong credit and savings. Without a down payment, you have less room to spare, so your income needs to be higher or your other debts need to be lower.

Credit score and income requirements vary by program

VA loans do not have a minimum credit score set by the VA itself, but individual lenders usually require 580 to 620. Your income needs to be stable and documented — lenders will ask for two years of tax returns and recent pay stubs. If you are self-employed, the process takes longer because they need to verify your income more carefully.

USDA loans typically require a credit score of 580 or higher, though some lenders go lower. You must also meet income limits based on your county and household size. FHA loans accept credit scores as low as 580 in some cases, though 620 is more common. All three programs require that you have not had a major negative event (like a foreclosure or bankruptcy) in the recent past — usually within the last two to three years, though the exact timeline depends on the lender.

Closing costs and other expenses you still pay

Even though you are not putting money down, you still have to pay closing costs — the fees for the appraisal, title search, underwriting, and loan origination. These typically run 2% to 5% of the loan amount. On a $200,000 home, that could be $4,000 to $10,000. Some lenders or sellers will cover part or all of this, but you cannot assume they will.

You also need to budget for a home inspection (usually $300 to $500) before you make an offer, and you will need homeowners insurance before closing. These are separate from the mortgage itself, so factor them into your planning. Some programs allow you to roll closing costs into the loan, but this means you are borrowing more money and paying interest on those costs for 30 years.

Frequently Asked Questions

Can I get a no-down-payment mortgage if I have bad credit?

VA and USDA loans do not have published minimum credit scores, so some lenders will work with you even if your score is below 600. FHA loans accept scores as low as 580. However, a lower score usually means a higher interest rate, which increases your monthly payment. You may also need to explain any negative marks on your credit report.

What if I cannot afford the 3.5% down payment for an FHA loan?

Some sellers will pay your down payment as part of the sale agreement, or a family member can give you a gift (lenders allow this). If neither is possible, a USDA loan (if you may have access to by location and income) or a VA loan (if you are may be able to access) are your only true zero-down options. Otherwise, you may need to save or wait.

Will I ever stop paying mortgage insurance?

On VA loans, there is no mortgage insurance at all. On FHA loans, you pay for the life of the loan if you put down less than 10%, or for at least 11 years if you put down 10% or more. On USDA loans, mortgage insurance can sometimes be removed after you have paid the loan down to 80% of the home's value, but this varies by lender.

Do I have to use a specific lender for these programs?

No. Many banks, credit unions, and mortgage companies offer VA, USDA, and FHA loans. Shop around and compare interest rates and fees — the difference between lenders can save or cost you thousands over the life of the loan.

What if I am not may be able to access for VA or USDA loans and cannot afford 3.5% down?

You have a few paths: save until you have 3.5% for an FHA loan, ask a family member for a gift, negotiate with a seller to cover your down payment, or look into down payment information programs run by your city or state. Some nonprofits also offer grants or low-interest loans to help with down payments.