Can You Buy a Home With No Money Down in 2026?

If you've been told you need 20% down to buy a home, we have great news: that's a myth. In 2026, there are multiple legitimate ways to purchase a home with absolutely zero money out of pocket for the down payment. Millions of Americans qualify for these programs and don't even know it.

At Zero Down Home Store, we help buyers navigate these options every day. In this guide, we'll walk you through every major zero-down pathway available right now — from government-backed loans to state grants and builder incentives. By the end, you'll know exactly which programs you might qualify for.

The Short Answer: Yes, You Absolutely Can

There are two main categories of zero-down home purchases:

1. True zero-down loans — mortgage programs that don't require any down payment at all (VA and USDA loans)
2. Low-down loans + assistance — programs like FHA that require a small down payment, combined with grants or assistance programs that cover that amount

Both approaches result in the same thing: you move into your new home without paying thousands of dollars upfront for a down payment. Let's break down each option.

Option 1: VA Loans — The Gold Standard of Zero-Down Mortgages

If you're a veteran, active-duty service member, or eligible surviving spouse, VA loans are hands-down the best mortgage product available. Here's why:

• Zero down payment required — no matter the home price
• No private mortgage insurance (PMI) — saving you $100-300/month compared to conventional loans
• Competitive interest rates — typically 0.25-0.5% lower than conventional loans
• No maximum loan amount for borrowers with full entitlement
• Lenient credit requirements — most lenders accept scores as low as 580-620

The VA loan program is backed by the U.S. Department of Veterans Affairs, which guarantees a portion of the loan. This guarantee is what allows lenders to offer such favorable terms. You'll need a Certificate of Eligibility (COE), which your lender can pull electronically in minutes.

The only cost unique to VA loans is the funding fee, which ranges from 1.25% to 3.3% of the loan amount depending on your service history and down payment. This fee can be rolled into the loan, so you still pay nothing out of pocket. Veterans receiving VA disability compensation are exempt from the funding fee entirely.

Option 2: USDA Loans — Zero Down for Rural and Suburban Buyers

Don't let the name fool you — USDA loans aren't just for farmland. The U.S. Department of Agriculture's Rural Development loan program covers a surprisingly large portion of the country, including many suburban areas just outside major cities.

Key benefits of USDA loans:

• Zero down payment
• Below-market interest rates
• Lower mortgage insurance costs than FHA
• 30-year fixed-rate terms
• Flexible credit guidelines (typically 640+ score)

Eligibility requirements:

• Location: The property must be in a USDA-eligible area. Check the USDA eligibility map to see if your desired area qualifies.
• Income limits: Your household income generally cannot exceed 115% of the area median income. For a family of four in most areas, this means a household income under roughly $110,000-$130,000 depending on location.
• Primary residence: The home must be your primary residence — no investment properties or vacation homes.

USDA loans have a 1% upfront guarantee fee (which can be financed into the loan) and a 0.35% annual fee — both significantly lower than FHA mortgage insurance premiums.

Option 3: FHA Loans + Down Payment Assistance (DPA)

FHA loans require a minimum 3.5% down payment — but that doesn't mean the money has to come from your savings. Down payment assistance programs can cover some or all of that 3.5%, effectively making your FHA loan a zero-down purchase.

DPA comes in several forms:

• Grants — free money that never needs to be repaid
• Forgivable second mortgages — loans that are forgiven after you live in the home for a set period (typically 5-10 years)
• Deferred-payment second mortgages — no payments until you sell, refinance, or pay off the first mortgage
• Low-interest second mortgages — small monthly payments on the assistance amount

There are over 2,000 DPA programs nationwide, offered by state housing finance agencies, counties, cities, and nonprofits. Many buyers qualify for $10,000-$25,000 or more in assistance — often enough to cover both the down payment and closing costs.

Option 4: State and Local Grant Programs

Nearly every state in the country offers some form of homebuyer assistance. These programs are specifically designed to help first-time buyers (and sometimes repeat buyers) overcome the down payment barrier.

Examples of popular state programs:

Qualification typically depends on income limits, purchase price limits, and completing a homebuyer education course. Many programs are available to buyers with moderate incomes — not just low-income households.

Option 5: Builder Incentives and Seller Concessions

In certain market conditions, home builders and sellers offer financial incentives that can reduce or eliminate your out-of-pocket costs:

• Builder closing cost credits — new construction builders often offer $5,000-$20,000+ toward closing costs when you use their preferred lender
• Rate buydowns — builders may pay to reduce your interest rate for the first 1-3 years
• Seller concessions — in buyer-friendly markets, sellers may agree to pay 3-6% of the purchase price toward your closing costs

When combined with a zero-down loan or DPA program, builder incentives can mean you truly bring nothing to the closing table — and might even walk away with cash back for moving expenses.

Combining Programs for Maximum Benefit

Here's where it gets exciting: many of these programs can be stacked together. For example:

• VA loan + seller concessions = zero down payment + seller pays closing costs
• FHA loan + state DPA grant + builder credit = DPA covers down payment, builder covers closing costs
• USDA loan + state grant = zero down + grant covers closing costs

The key is working with a knowledgeable loan officer who understands how to layer these programs. Not every lender participates in every DPA program, so it's important to find one who specializes in zero-down strategies.

What About Closing Costs?

A common question we hear: "Even if I don't need a down payment, what about closing costs?" Great question. Closing costs typically run 2-5% of the purchase price and include things like appraisal fees, title insurance, lender fees, and prepaid taxes/insurance.

Several strategies can help cover closing costs:

• Many DPA programs cover closing costs in addition to the down payment
• Seller concessions (the seller agrees to pay a portion of your costs)
• Lender credits (accepting a slightly higher interest rate in exchange for the lender covering closing costs)
• Builder incentives on new construction
• Gift funds from family members

It's entirely possible — and actually quite common — for buyers to purchase a home with zero dollars out of pocket when the right programs are combined.

Common Myths About Zero-Down Home Buying

Myth: "You need perfect credit for zero-down loans"

Not true. VA loans have no official minimum credit score (though most lenders want 580+). USDA loans typically require 640. FHA loans with DPA usually need 620-640. These are attainable scores for most working Americans.

Myth: "Zero-down loans have terrible interest rates"

Actually, VA loans consistently offer the lowest rates of any mortgage product. USDA rates are also very competitive. Even FHA rates tend to be lower than conventional loans.

Myth: "You'll be underwater on your mortgage"

With home values appreciating 3-5% annually in most markets, buyers who purchase with zero down typically build equity within the first 1-2 years. The bigger risk is waiting — as home prices and rents continue to rise, the cost of not buying grows every month.

Myth: "Only low-income buyers qualify"

VA loans have no income limits whatsoever. Many DPA programs serve moderate-income buyers with household incomes up to $100,000+. USDA income limits are based on area median income and can be quite generous in higher-cost areas.

How to Get Started

Ready to explore your zero-down options? Here's what we recommend:

1. Take our free Readiness to Buy quiz — it takes 2 minutes and gives you a personalized assessment of which programs you may qualify for
2. Check your credit — pull your free annual credit reports from AnnualCreditReport.com and review for errors
3. Gather your documents — recent pay stubs, W-2s, bank statements, and tax returns
4. Connect with a zero-down specialist — work with a loan officer who knows these programs inside and out

The biggest mistake we see? Buyers who assume they can't afford a home and never even look into their options. Don't let outdated myths keep you from homeownership.

Frequently Asked Questions

Can I buy a home with no money down?

Yes. VA loans and USDA loans require zero down payment. FHA loans can also become zero-down when combined with down payment assistance programs. There are over 2,000 DPA programs nationwide.

What credit score do I need for a zero down payment loan?

VA loans have no official minimum but most lenders want 580-620. USDA loans typically require 640. FHA loans require 580 for 3.5% down, which DPA programs can cover.

Do I have to be a veteran to get a zero down payment mortgage?

No. USDA loans are available to all eligible buyers in qualifying rural and suburban areas. Many state and local DPA programs also offer zero-down options to non-veterans.

Related reading: Zero Down Payment Home Loans: Your Complete Guide · VA Loan Requirements in 2026 · First-Time Homebuyer Programs in Texas