How to buy a house with no money down

One of the biggest hurdles to purchasing your first home is saving enough money for a down payment. According to Redfin data from March 2026, the median down payment amount is $64,000 or 15%, which may not be attainable for every home buyer.¹ However, it can be possible to buy a house with no money down. There are a few zero-down payment loans that make homeownership more accessible, such as VA loans. While these loans are tailored to specific buyers and properties, there are other options that can help you buy your first home with little to no money down.

Key takeaways:

• The VA and USDA offer zero-down payment mortgages, although they have strict qualifications and may require upfront costs.²
• Low-down payment options include FHA loans and One+ by Rocket Mortgage.^3,4
• Buying a home with no money down can help you become a homeowner faster, but there are still typically other initial costs to save for.

Can you buy a house with no money down?

Yes, you can buy a house with no money down, but you'll generally need to meet certain qualifications.

VA loans and USDA loans are government-backed home loans that allow qualified borrowers to buy a house with no down payment. If you don’t qualify for a no-down-payment mortgage, there are low-down-payment loans you may qualify for instead.

What is a zero-down mortgage?

A zero-down mortgage is a home loan that finances 100% of a property's purchase price. A down payment is the up-front sum of money you pay toward purchasing a home. With a zero-down mortgage, no down payment is required. Keep in mind that zero-down loans still typically include other up-front fees, like closing costs.

What types of loans require no down payment?

There are only a few types of loans that don’t require you to have a down payment when buying a home.

VA loans

Backed by the U.S. Department of Veterans Affairs, VA loans are available to eligible active-duty military personnel, veterans, and their surviving spouses.

To qualify for a VA loan, borrowers must obtain a Certificate of Eligibility (COE) and pay a one-time VA funding fee. The fee is between 1.25% – 3.3% of the loan amount and is based on whether you’ve had a VA loan before and your down payment amount.

Qualified borrowers can purchase a home with no down payment and don’t have to pay for private mortgage insurance (PMI). VA loans also typically have competitive interest rates.

The VA doesn’t set a minimum credit score requirement, but lenders may have their own policies. For VA fixed-rate loans, Rocket Mortgage requires a credit score of 620 or higher.

USDA loans

Backed by the U.S. Department of Agriculture, USDA loans cater to low- to moderate-income buyers purchasing homes in designated rural or suburban regions. Rocket Mortgage currently does not offer USDA mortgages.

To qualify for a USDA loan, the home must be in an eligible rural area, buyers must use the home as their primary residence, and they must meet income eligibility requirements.

For qualified borrowers, there is no down payment requirement. USDA loans require borrowers to pay a guarantee fee, which includes a 1% up-front fee and a 0.35% annual fee.

To see if your area qualifies, you can check the USDA property eligibility map.

Specialized zero-down conventional loans

Some local banks and regional credit unions offer specialized, conventional mortgages with no down payment. These products typically feature strict membership criteria, local income limits, and specific credit score requirements. Check with your bank or credit union to see if it offers no-down-payment loans.

Requirements for a low down payment mortgage

While VA and USDA loans let you buy a house without a down payment, most people won’t be eligible for them. Some alternatives have low down payment requirements.

Conventional loans

Conventional loans are mortgages offered by private lenders without government backing.

Conforming conventional loans meet criteria that allow the government-sponsored enterprises Fannie Mae and Freddie Mac to buy the loans from lenders after closing. The requirements include a maximum loan amount and a minimum credit score.

You can get a conforming conventional loan with a minimum down payment of 3%¹ for fixed-rate loans and 5% for adjustable-rate loans. You can use Rocket Mortgage's down payment calculator to get a sense of how much you will need for a down payment.

Keep in mind that if your down payment is less than 20% of the purchase price, you’ll have to pay for private mortgage insurance. These loans can be a good fit for borrowers with strong credit and the ability to afford a larger down payment.

Fannie Mae HomeReady^® and Freddie Mac Home Possible^® Loans

HomeReady and HomePossible loans² require a down payment of at least 3% to those who make no more than 80% of the area median income. They also offer a $2,500 credit that low-income, first-time buyers can put toward that down payment or closing costs if their income is less than 50% of the area median.

FHA loans

FHA loans are insured by the Federal Housing Administration and meant to help borrowers with lower credit scores afford a home.

The minimum credit score to qualify is 500, with a 10% down payment. However, the best terms require a score of 580, and many lenders, including Rocket Mortgage, will only provide FHA loans to borrowers with a score of 580 or higher.³ The minimum down payment is 3.5%.

What costs do you pay with a no-money-down loan?

Even with zero down payment, you likely still have up-front fees when buying a home. Let’s look at some of these costs:

• Up-front fees: VA loans have a funding fee ranging from 1.25% – 3.3% of the loan amount. USDA loans have a guarantee fee, which includes a 1% up-front fee and a 0.35% annual fee.
• Closing costs: Closing costs usually range from 3% – 6% of the purchase price or loan amount and can include anything from appraisal fees to loan origination fees.
• Earnest money deposit: An earnest money deposit, also called a good faith deposit, shows the seller you’re a serious buyer. This deposit can range from 1% – 3% of the property's purchase price and is applied toward closing costs.

Pros and cons of buying a house with no money down

As with any loan type, buying a home with no money down has advantages and disadvantages.

Pros of a zero-down payment loan

• Faster path to homeownership. Using a no-down-payment loan can help you buy a home sooner rather than waiting years to save for a house down payment.
• Less up-front money is required. You don’t need a large sum of cash to pay for a down payment.
• More funds for other expenses. You can use your remaining funds to pay for other costs, such as closing costs, moving costs, or repairs.
• Flexible credit and income requirements. For qualified borrowers, VA and USDA loans often have flexible financial requirements.
• May not require mortgage insurance. Depending on the type of loan you choose, you may not have to pay for mortgage insurance.

Cons of a zero-down payment loan

• Up-front fees. Even no-down-payment loans have fees, like closing costs, the VA funding fee, or USDA guarantee fee.
• Limited home equity. No down payment means you won’t start with any home equity, and it can take longer to build equity.
• Higher monthly payments. With no down payment, you’ll need to borrow more money, which can lead to a higher mortgage payment.
• Potential for higher interest rates. Some lenders will compensate for the risk posed by a no-money-down loan by charging a higher mortgage rate.
• Still requires some up-front cash. You’ll still need cash for closing costs and other expenses, like moving costs.

What types of loans offer low-down payment mortgages?

For buyers who don’t qualify for a VA or USDA loan, there are several low-down-payment mortgages that can reduce up-front costs.

Conventional loans

Conventional loans allow qualified borrowers to buy a home with a down payment as low as 3% for a fixed-rate loan or 5% for an adjustable-rate mortgage (ARM).⁵ Putting down less than 20% means you’ll need to pay PMI. You can use the Rocket Mortgage down payment calculator to estimate how much your down payment might be.

Fannie Mae HomeReady^® and Freddie Mac Home Possible^® loans

HomeReady^® and Home Possible^® loans require a down payment of at least 3% for borrowers who make no more than 80% of the area median income.^5,6 Buyers typically need a credit score of at least 620 to qualify for a HomeReady® loan, and a credit score of at least 660 for a Home Possible^® loan.

Some lenders may have different credit score expectations. Additionally, you’ll likely need to pay for PMI.

FHA loans

Backed by the Federal Housing Administration, FHA loans allow for a minimum down payment of 3.5% for borrowers with a credit score of 580 or higher.⁷ Note that FHA loans require an up-front mortgage insurance premium (MIP) as well as an annual MIP. The MIP amount depends on how much your down payment is.

How to buy a house with One+ by Rocket Mortgage

One+ by Rocket Mortgage allows borrowers to buy a home with a down payment of just 1%. Rocket provides the remaining 2% of your down payment.

Some qualifications include:

• Your income is at or below 80% of the area median income (AMI).
• You’re buying a single-family home that is your primary residence.
• Your credit score is at least 620.

This loan can be a good fit for lower-income borrowers seeking a 30-year fixed-rate mortgage.

How do down payment assistance programs work?

Down payment assistance programs can help home buyers reduce the up-front costs of buying a home. Usually, these programs are geared toward first-time home buyers, but there are a variety of state and local programs that may help other types of borrowers.

States, counties, and municipal housing authorities commonly offer assistance as grants or forgivable second mortgages to help reduce your down payment amount. Keep in mind that each program has different requirements. It’s important to research your options or speak with a qualified real estate agent or lender in your area about available programs.

Other ways to buy a house with limited funds

Whether you qualify for a no- or a low-down-payment loan, there are other strategies to help reduce the up-front costs of homeownership.

Use gift funds for your down payment

You can ask family or friends to help you finance your down payment by using gift funds. Typically, your lender will ask you for a gift letter from anyone who gives you money, which details the amount and confirms it’s a gift you don’t have to pay back.

Consider a no-closing-cost mortgage

A no-closing-cost mortgage often requires a down payment, but your lender pays the closing costs. In return, the closing costs are typically rolled into your mortgage payments, or you receive a higher interest rate. Either way, your mortgage payment will typically be higher to compensate for not paying closing costs up-front.

Ask for seller-paid closing costs

Negotiating seller concessions is one way that buyers can reduce the up-front costs of homeownership. Buyers can negotiate with the seller to cover some closing costs, such as loan origination fees or recording fees, among others. Any seller concessions are outlined in the purchase agreement and agreed upon by both the buyers and sellers.

Look into Good Neighbor Next Door

HUD's Good Neighbor Next Door program offers a 50% discount off the home’s list price for specific teachers, law enforcement officers, firefighters, and emergency medical technicians. Buyers must also live in the home as their primary residence for at least 36 months and possibly meet other requirements.

FAQ

Here are answers to common questions about buying a home with no money down.

Is it possible to buy a house with no money down?

Yes, it’s possible to buy a home with no money down. You’ll need to qualify for a special loan program, such as a VA or USDA loan. There are low-down-payment loans that still require a down payment and may be better suited for your needs.

Is $10,000 enough to put down on a house?

It depends. $10,000 might be enough for a down payment if you have a low-down payment loan, combine funds with down payment assistance grants, or secure seller concessions to cover closing fees. However, your down payment amount varies widely depending on your location, finances, and your home buying needs.

What’s the minimum down payment for a $300,000 house?

For a $300,000 home, the minimum down payment is $0 for qualifying VA or USDA borrowers, $9,000 (3%) for conventional low-down payment programs, and $10,500 (3.5%) for FHA loans.

Can I buy a house with no money down and no closing costs?

While you cannot avoid costs entirely, you can reduce out-of-pocket costs at closing by combining no down payment on a VA or a USDA loan with seller concessions, down payment assistance, or lender credits.

What credit score is needed to buy a house with no money down?

While VA and USDA loans don’t have a strict minimum credit score, individual mortgage lenders typically have their own credit score requirements. These minimum scores may start around 580 to 620. Rocket Mortgage requires at least a 620 credit score for a VA fixed-rate loan. Rocket Mortgage does not currently offer USDA loans.

Is it more difficult to get approved for a mortgage with no money down?

Yes, it’s typically more difficult to qualify for a zero-down mortgage due to the loan program’s eligibility criteria. If you qualify for a VA or USDA loan, your lender may still have additional requirements you need to meet.

The bottom line: You can buy a house with no or low money down

Buying your first home doesn’t require saving for a 20% down payment, and it’s possible to buy with little to no money down. Whether you qualify for a VA or USDA loan with no money down, or choose a low-down payment mortgage, there are plenty of loan options to achieve homeownership. Comparing loan types and working with an experienced lender will help you select the strategy that best fits your goals.

If you’re ready to start shopping for a home, you can get started by exploring your mortgage options with Rocket Mortgage.

¹ Rocket Mortgage is an affiliate of Redfin. You aren’t required to use its lending services. Learn more at redfin.com/afba.

² Rocket Mortgage is a VA-approved lender, not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.

³ Rocket Mortgage is not acting on behalf of FHA or HUD.

⁴ Client will be required to pay a 1% down payment, with the ability to pay a maximum of 3%, and Rocket Mortgage will cover an additional 2% of the client's purchase price as a down payment, or $2,000. Maximum grant amount is $7,000. Offer valid on primary residence, conventional loan products only. Maximum loan amount of $350,000. Cost of mortgage insurance premium passed through to client effective January 2, 2024. Offer valid only for home buyers when qualifying income is less than or equal to 80% area median income based on county where property is located. Not available with any other discounts or promotions and cannot be retroactively applied to previously closed loans or loans that have a locked rate. This is not a commitment to lend. Rocket Mortgage reserves the right to cancel/modify this offer at any time. Additional restrictions/conditions may apply.

⁵ The 3% down payment option is only available on certain conventional loan products and is not available in all states. Additional terms and conditions may apply.

⁶ Clients will receive a lender credit of $2,500 when their income is equal to or below 50% of the median in their area. One client must be a first-time home buyer. Valid for Home Possible and HomeReady purchase loans locked on or after February 27, 2026. Offer is not available with any other discounts or promotions. Offer cannot be retroactively applied to previously closed loans or loans already in process; offer is not transferable. Rocket Mortgage reserves the right to cancel/modify this offer at any time. Additional restrictions/conditions may apply. This is not a commitment to lend.

⁷ To qualify for this offer, you must meet all standard FHA eligibility requirements. In addition, your total mortgage payment, including taxes and insurance, cannot exceed 38% of your income, your debt-to-income (DTI) ratio cannot exceed 45%, and you must have 12 months of verifiable housing history immediately prior to your application, no late payments 30 days or greater in the last 12-months, and no derogatory marks on your credit report. Not available on jumbo loans. Asset statements may be needed, no more than 1 day of non-sufficient fund fees are allowed in the most recent 2 months prior to application. Additional restrictions/conditions may apply.

This article is for informational purposes only and is not intended to provide, and should not be relied on for, medical, legal, financial, investment or tax advice. You should consult with a qualified professional for advice specific to your situation. Consumers should independently verify that any services, products, or programs referenced meet their needs and comply with applicable requirements.

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