- VA and USDA loans allow qualified buyers to purchase a home with no down payment, though buyers should still expect some closing costs at closing.
- VA loans offer major benefits for eligible Veterans and service members, including no down payment, no monthly PMI and competitive interest rates.
- Getting preapproved and working with a knowledgeable real estate agent can help make the zero-down homebuying process smoother and more successful.
For many military families, saving for a down payment can feel like the biggest barrier to homeownership. Between Permanent Change of Station (PCS) moves, deployments, growing families and everyday expenses, building up tens of thousands of dollars in savings isn’t always realistic.
So it makes sense to ask: Can you buy a house with no money down?
The short answer is yes. But only certain loan programs truly offer that benefit. Understanding your options is key, especially if you’re a Veteran, active-duty service member or eligible surviving spouse.
If you’re wondering how to buy a house with no money down, here’s what you need to know and why a VA loan is often one of the best paths forward.
What is a Zero-Down Mortgage?
A zero-down or “no money down” mortgage allows a homebuyer to finance 100% of the home’s purchase price. In other words, you don’t need to make a down payment at closing.
That’s different from most traditional home loans, which typically require down payments of 3% to 20%.
What “No Down Payment” Really Means
It’s important to clarify something upfront: No down payment does not mean no costs.
Even with a zero down payment home loan, buyers are still responsible for:
- Closing costs
- Lender fees
- Appraisal and credit report fees
- Prepaid items like homeowners insurance and property taxes
The good news? Some of these costs can be negotiated with the seller, covered by lender credits or paid using gift funds. In certain cases, buyers can significantly reduce what they bring to closing.
Cash-to-close can still be significant without a down payment. In some cases, buyers may still need several thousand dollars at closing, depending on negotiated concessions and prepaid expenses.
But you should expect some out-of-pocket expenses, even if you don’t make a down payment.
Why Do Zero-Down Loans Exist?
Zero-down mortgages are typically offered through government-backed programs. These programs are designed to expand access to homeownership for specific groups of buyers.
For example:
- Military borrowers who have earned special benefits through their service
- Rural buyers who may have fewer housing opportunities
- Low-to-moderate income households that may struggle to save large down payments
By allowing qualified buyers to finance the full purchase price, these programs make homeownership possible sooner, without waiting years to save 10% or 20%.
Can I Buy a House With No Money Down?
If you’re asking, can you buy a house with no money down, the answer depends on your eligibility.
Only a small number of loan programs truly offer zero-down financing. These are almost always government-backed loans.
For most buyers, that means looking at VA loans or USDA loans. Let’s take a closer look at each.
VA Loans
For Veterans, active-duty service members and some surviving spouses, the VA loan program is one of the most powerful homebuying tools available.
Backed by the U.S. Department of Veterans Affairs, VA loans allow qualified borrowers to purchase a home with no down payment. That makes the VA loan one of the most accessible and beneficial true no down payment options on the market.
Key benefits of the VA loan include:
- No Down Payment: Qualified borrowers can finance 100% of the home’s value with no required down payment.
- No Private Mortgage Insurance (PMI): Unlike many conventional loans, VA loans do not require monthly PMI. This can save borrowers hundreds of dollars per month.
- Competitive Interest Rates: Because the VA guarantees a portion of the loan, lenders often offer favorable VA loan rates.
- Flexible Credit Guidelines: VA loans are designed to support service members and Veterans, and credit requirements are often more flexible than conventional financing.
If you’re eligible, the VA loan is often the strongest answer to the question of how to buy a house with no money down.
If you qualify, the VA loan benefit is also reusable. If you sell your home and pay off the loan, you may be able to use your benefit again. In some cases, you may even have remaining entitlement to purchase another home without selling. For many military families, it’s a benefit they’ve earned through service and one worth fully exploring.
USDA Loans
Another true zero-down option is the USDA loan.
Backed by the U.S. Department of Agriculture, USDA loans are designed to promote homeownership in rural and some suburban communities.
Just like VA loans, USDA loans come with specific requirements:
- Income limits based on household size and location
- Property must be located in an eligible rural or suburban area as detailed by the USDA
- Borrowers must meet credit and debt-to-income guidelines
Because of the location restrictions, USDA loans aren’t available everywhere. But many communities outside major metro areas qualify, sometimes in places buyers don’t expect.
USDA loans can be ideal for lower-to-moderate income households purchasing in eligible areas.
Low Down Payment Options
While VA and USDA loans allow buyers to purchase with no down payment, not everyone will qualify. If that’s the case, low down payment loans can still make homeownership more accessible.
FHA Loans
Backed by the Federal Housing Administration, FHA loans allow down payments as low as 3.5%. FHA loans are known for:
- Easier credit requirements
- Lower minimum down payments
- More flexible underwriting
However, FHA loans require both upfront and annual mortgage insurance premiums, which can increase your long-term costs.
Conventional Loans
Some conventional loan programs allow qualified buyers to put down as little as 3%. Conventional loans may be a good fit for some Veterans who have already used their VA loan benefit or don’t have enough remaining VA entitlement and want to purchase an investment property.
But it’s important to remember that you can often reuse your VA loan benefit. In many cases, restoring or using remaining entitlement, also known as second-tier entitlement, may make more sense than switching to a conventional loan.
While FHA and conventional loans are not true zero-down options, they can still help buyers with limited savings move forward sooner.
Answer a few questions below to speak with a specialist about what your military service has earned you.
Steps to Buy a House With No Money Down
No matter how much you put down, the overall homebuying process looks largely the same. Here’s how it typically works:
1. Check Eligibility
The first step is determining whether you qualify for a VA or USDA loan. Eligibility for VA loans depends on factors like:
- Length and type of service
- Discharge status
- Income and credit profile
USDA eligibility depends heavily on income limits and property location.
It's important to understand that meeting basic eligibility requirements does not guarantee loan approval. Final approval depends on income, credit, assets and property eligibility.
Starting with eligibility helps you understand which path makes the most sense.
2. Get Preapproved
Preapproval is a critical step before house hunting. During preapproval, a lender reviews your personal details, including:
- Income
- Credit
- Debts
- Assets
They’ll determine how much home you may be able to afford and issue a preapproval letter. Sellers often expect this before considering an offer.
For zero-down borrowers especially, preapproval demonstrates financial readiness.
3. Find a Knowledgeable Real Estate Agent
Working with an experienced agent matters, especially when using a VA or USDA loan. VA loans come with specific appraisal and property requirements. USDA loans have geographic limitations.
An agent familiar with these programs can:
- Guide you through the homebuying process
- Help you target eligible homes
- Structure competitive offers
- Navigate appraisal and inspection requirements
For military homebuyers, that experience can make the process smoother from start to finish. If you're not sure where to start, Veterans United Realty can help connect you with agents who have experience helping Veterans and military families navigate VA home purchases.
4. Shop for Homes
Once preapproved, you can start touring homes.
VA loans can be used for most primary residences that meet the Minimum Property Requirements. That includes:
- Single-family homes
- Many condos
- Some multi-unit properties
USDA loans require homes to be in designated eligible areas, so location will play a bigger role in your search. Work with your agent to understand which homes will best fit with your desired loan program.
5. Make an Offer and Close
When you find the right home, your agent will help you submit an offer. Once accepted, your lender will:
- Order an appraisal
- Finalize underwriting
- Confirm loan terms
At closing, you’ll review and sign loan documents and handle remaining closing costs. Even with a zero down payment home loan, you’ll want to carefully review your interest rate, monthly payment and total loan costs.
6. Move In
After closing, you’ll receive the keys to your new home, and you can make plans to move and make your new home yours. For many eligible borrowers, zero-down programs make this milestone possible years earlier than expected.
Do You Qualify for a Zero-Down Home Loan?
Zero-down home loans are real. But they’re not available to everyone. Only specific programs offer 100% financing, and borrowers must meet eligibility guidelines.
For Veterans and service members, the VA loan remains one of the most accessible and financially beneficial paths to homeownership. With no down payment, no monthly PMI and competitive rates, it’s often the strongest answer to the question of how to buy a house with no money down.
If you’re unsure where you stand, the best next step is speaking with a knowledgeable lender.
Ready to see if you qualify for a VA home loan? Speak with a Veterans United VA loan expert at 1-855-870-8845 or get started online today.
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