Can You Buy a House with 0% Down?

Yes, you can buy a house with 0% down — but almost entirely through two government-backed programs: VA loans for veterans, active-duty service members and some surviving spouses, and USDA loans for buyers in eligible rural and suburban areas. Conventional loans require at least 3% and FHA requires 3.5%, so a true zero-down purchase is not available to everyone. Here is who qualifies, how each program works, and the real trade-off of buying with nothing down.

VA loans: zero down for those who served

The VA loan is the best zero-down option in the country. Eligible veterans, active-duty members, National Guard and Reserve members (with sufficient service), and certain surviving spouses can buy a primary residence with $0 down and no monthly mortgage insurance.

Key facts:

• No down payment and no PMI, ever.
• Competitive rates — often at or below conventional, thanks to the VA guarantee.
• One-time funding fee — 2.15% of the loan for first use with no down payment (waived for veterans receiving VA disability compensation). It can be rolled into the loan.
• Primary residence only — no investment properties or vacation homes.

On a $400,000 home, a VA buyer finances the full $400,000 with $0 down and pays no insurance — often landing a lower monthly payment than a civilian borrower who scraped together 20%.

USDA loans: zero down for rural buyers

USDA loans (also called Rural Development loans) offer 0% down for buyers in eligible rural and some suburban areas. Roughly 97% of the U.S. land area qualifies, so "rural" is broader than most people assume — many small towns and outer suburbs qualify.

Key facts:

• 0% down, backed by the U.S. Department of Agriculture.
• Income limits — your household income must be under a local cap (often around 115% of the area median).
• Fees — an upfront guarantee fee (about 1%) and an annual fee (about 0.35%) rolled into the payment. It is cheaper than FHA's MIP but not free.
• Credit — no official minimum, but most lenders want 640.

Other low-down options (not quite zero)

If you do not qualify for VA or USDA, the next closest options are:

• Conventional 3% down — HomeReady and Home Possible programs for first-time buyers with 620+ credit.
• FHA 3.5% down — for buyers with 580+ credit.
• Down payment assistance — many states and nonprofits offer grants and forgivable loans that can cover your down payment, effectively getting you to zero out of pocket even on a conventional or FHA loan.

The real trade-off of zero down

Zero down gets you into a home without saving for years — but it is not free:

• A bigger loan. Financing 100% instead of 80% means a higher monthly payment. On a $400,000 home at 6.5%, the difference between 0% and 20% down is about $505 a month in principal and interest.
• No equity cushion. You start at 0% equity. If home values dip even slightly, you owe more than the house is worth ("underwater"), which makes selling or refinancing difficult.
• More total interest. The larger the loan, the more interest you pay over 30 years.

Zero down is the right tool when you have stable income but limited savings — a common profile for younger veterans and buyers in cheaper rural markets. It is the wrong tool if you have savings but are choosing to keep them invested, because the larger loan and higher payment usually outweigh that.

The honest math

Compare a $400,000 home bought three ways, at 6.5% for 30 years:

	VA 0% down	FHA 3.5% down	Conventional 20% down
Down payment	$0	$14,000	$80,000
Loan amount	$400,000	$386,000	$320,000
Monthly P&I	$2,528	$2,440	$2,023
Mortgage insurance	$0	~$177/mo (MIP)	$0

Notice the VA buyer pays about $505 more a month than the 20%-down buyer — but needed $80,000 less up front and pays no insurance. For a buyer with income but no savings, that is a far better position than waiting years to save a down payment while rents rise.

Frequently asked questions

Can anyone get a 0% down mortgage?

No. Zero down requires VA eligibility or a USDA-eligible property. Everyone else needs at least 3% (conventional) or 3.5% (FHA), unless they use down payment assistance.

Is a 0% down loan a good idea?

It can be, if you have stable income but no savings. The trade-off is a higher payment and no equity cushion. Avoid it if you have savings you are choosing not to use.

Do VA loans require a down payment?

No — that is their defining feature. There is a one-time funding fee, but no down payment and no monthly mortgage insurance.

What is the minimum down payment on a conventional loan?

3% through HomeReady or Home Possible for qualified first-time buyers, or 5% for standard conventional loans.

Compare down-payment scenarios — including PMI and MIP — side by side on the HomeMath mortgage calculator.