How to Buy a House With No Money: 6 Genuine Zero-Down Routes

The short answer: yes — through programs, not persuasion

Lenders want down payments because they shrink the lender’s loss if prices fall — the CFPB’s down-payment explainer puts it plainly. So you do not persuade a lender to waive it; you qualify for a program that funds it another way.

Every path has a trade-off: eligibility limits, guarantee fees, slow timelines, or a bigger monthly payment. The question is never “which is free?” but “which trade-off fits?” — check what you can afford first.

1. VA loans: zero down for veterans and service members

If you are eligible, start here. VA-backed loans require no down payment, charge no monthly mortgage insurance, and typically offer competitive rates. Per the VA’s home loan program, eligible veterans, active-duty service members and some surviving spouses can finance 100% of the value.

Two catches: a one-time funding fee (waived for service-connected disabilities), usually rolled into the loan, and a VA appraisal with minimum property requirements — see our VA appraisal guide. Zero down with no monthly PMI is unmatched.

2. USDA loans: zero down in eligible rural areas

The USDA’s Section 502 Guaranteed Loan Program offers 100% financing in eligible rural areas, backed by a 90% guarantee that makes zero-down lending safe for approved lenders — see the USDA’s program page.

The trade-offs: household income generally capped at 115% of the area median; the home must sit in an eligible rural area — “rural” covers plenty of suburbs, so check the USDA maps; 30-year fixed only. Instead of PMI you pay an upfront and annual guarantee fee, typically cheaper.

3. NACA: no down payment and no closing costs

The Neighborhood Assistance Corporation of America runs the most literal “no money” mortgage in the country: no down payment, no closing costs, no PMI, and a below-market fixed rate — per naca.com. No income cap, no minimum credit score; qualification rests on payment history and documented affordability.

The price is patience: workshops, counseling, volunteering, and months of documentation — six months to a year is normal. With steady income and thin savings, it is the closest thing to buying with genuinely no money.

4. Down-payment-assistance grants and forgivable loans

Most states run down-payment-assistance (DPA) programs through their housing finance agencies: outright grants you never repay, forgivable second loans, or deferred loans due only when you sell. They target first-time and moderate-income buyers, pair with FHA or conventional loans, and usually require a homebuyer-education course.

DPA turns many 3.5%-down FHA loans into effective zero-down purchases. Rules and funding caps vary by state and county — search your state’s housing finance agency early, since annual funds run out. Comparing tiers? Our $300k down-payment guide breaks down each level.

5. Lender credits and seller concessions

These do not erase the down payment — they erase the other cash that stops many purchases. A lender credit trades a slightly higher rate for the lender covering costs; seller concessions have the seller pay a share from the proceeds, capped by loan type.

Alone they leave the down payment to you; paired with a DPA grant, a deal can land near zero out-of-pocket. Negotiate concessions when buyers hold leverage — in hot markets sellers refuse.

6. Piggyback loans: the 80-10-10 (and 80-20) workaround

A piggyback stacks two loans: an 80% first mortgage plus a second loan. Classic 80-10-10 still needs 10% cash — but pair it with a DPA grant for that 10%, or find an 80-20 lender, for true zero down. The first mortgage sits at 80% loan-to-value, so no PMI.

The cost is the second loan: a higher, often adjustable rate, plus two payments to juggle. Run both on our mortgage calculator — a piggyback only wins if the second loan’s rate beats PMI’s cost.

The honest maths: zero-down at 7.28%

Zero down means borrowing the full price, and at today’s rates that stings: $300,000 at the site’s benchmark 7.28% 30-year fixed costs about $2,053 a month in principal and interest — versus about $1,847 with 10% down. a $205 monthly gap totalling over $73,000 across the loan’s life.

That is the real price of “no money”: a bigger loan at the same rate. It can still be right — intact emergency savings has genuine value, and VA/USDA borrowers skip PMI entirely. Just size the full monthly figure on our mortgage calculator.

What you still need in cash: the zero-down checklist

“No money down” never means “no money at all.” Budget for these regardless of route:

• Earnest money: the good-faith deposit with your offer, credited at closing but cash upfront.
• Inspection and appraisal: a few hundred dollars each, paid out of pocket before closing.
• Closing costs: 2–5% of the price — lender fees, title, recording, prepaid items — partly offset with lender credits and seller concessions.
• Prepaid insurance and taxes: the first year’s homeowners premium plus escrow seed money, due at closing.
• Moving and immediate repairs: the costs everyone forgets.
• An emergency buffer: never drain every dollar to close.