How to buy a house with no money down

Effective November 16, 2025, both Fannie Mae and Freddie Mac are removing the minimum credit score requirement from their conventional loan eligibility guidelines. Loan approval will instead be based on an evaluation of overall credit risk factors.

Saving money for a down payment is one of the biggest hurdles for many aspiring homeowners. With the median sales price for houses in the United States at more than $400,000, you'd need to save more than $20,000 for a 5% down payment. You'd also have to pay closing costs, moving expenses, and furnishing the home.

Some government-backed mortgages require no down payment, but they are usually available only to specific types of borrowers or for buying properties in specific areas. There are other ways to get help with the down payment and other up-front costs of a home, including down payment assistance.

What types of loans don’t require a down payment?

Most mortgages require a down payment because it helps reduce the lender's risk in lending you money.

Only a few types of mortgages require no down payment. They’re usually government-backed home loans, available only to specific types of borrowers or for the purchase of specific types of homes.

VA loans

VA loans are a benefit provided by the Department of Veterans Affairs to military service members, veterans, and their surviving spouses.

There's no requirement for a VA loan down payment. However, most VA borrowers are required to pay an up-front funding fee. The fee is between 1.25% and 3.3% of the loan amount, based on whether you’ve had a VA loan before and the size of your down payment.

The VA does not set a minimum credit score requirement, but many lenders require a score of 620 or higher.

USDA loans

USDA loans are offered to low- to mid-income borrowers buying a home in a designated rural area. They cannot be used to buy homes in other locations. The USDA offers an online search tool so you can check if a home you want to buy is eligible for a USDA loan.

USDA loan requirements do not include a minimum down payment or a minimum credit score. Many lenders, however, require a score of 640 or higher for a USDA loan.

Rocket Mortgage^® does not currently offer USDA mortgages.

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.

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%. They also offer a $2,500 credit that low-income, first-time buyers can put toward that down payment or closing costs.

To qualify, you must complete a homeownership education class and earn less than 80% of your area’s median income.

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%.

Pros and cons of a loan with no down payment

Buying a home with no down payment can sound appealing, but it’s important to choose the right type of loan and consider the pros and cons.

Pros

Some of the benefits of mortgages with no down payment requirement include:

• Faster path to homeownership. You can buy a home sooner because you won’t have to spend as much time saving a down payment.
• Less up-front money required. You don’t need to have cash to pay for a significant up-front expense.
• More cash for other expenses. You can dedicate the money you would have put toward the down payment to other costs, such as moving or furnishing the home.
• Flexible credit and income requirements. Government loan programs like VA and USDA loans often have flexible eligibility requirements.
• May not require mortgage insurance. Depending on the type of loan you choose, you may be able to avoid paying for mortgage insurance.

Cons

A no down payment mortgage isn't right for everyone. Keep these drawbacks in mind.

• Limited home equity. No down payment means you won’t start with any home equity. It’s easy to wind up underwater on the loan.
• Higher mortgage payment. If you don’t make a down payment, you’ll need to borrow more money, which can lead to a higher mortgage payment.
• Other potential loan fees: Even if you don’t have to make a down payment, you may have to pay an up-front fee, like a VA funding fee or USDA guarantee fee.
• 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: Even if you don’t make a down payment, you’ll still need cash for closing costs and other expenses, like moving costs.

How down payment assistance programs work

If you’re trying to buy a home and need help affording the down payment, a down payment assistance program can help. These programs offer home buyers – particularly first-time buyers – cash that they can put toward closing costs or their down payment.

Many of these programs are run by city or state governments and local nonprofits.

Check your area to see which programs you may qualify for.

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. ⁴

To qualify, you must:

• Stay below income limits based on your area’s median income
• Be buying a single-family home that will be your primary residence
• Have a credit score of 620
• Have a debt-to-income ratio of less than 50%
• Have money to cover closing costs 

Other ways to buy a house with limited money

If you’re struggling to buy a home with limited money, there may be other ways to deal with the down payment requirement, such as:

• Use gift funds for your down payment. You can ask family or friends to help you with the down payment by giving you money. You’ll want to get a gift letter from anyone who gives you money detailing the amount and confirming it’s a gift you don’t have to pay back. Your lender likely will ask for this proof of gifts.
• No-closing-cost mortgages. A no-closing-cost mortgage may still require a down payment, but it eliminates one of the other up-front costs of buying a home. Usually, these loans roll closing costs into the balance or have a higher interest rate, so you’ll have a higher mortgage payment to compensate.
• Seller-paid closing costs. In a buyer’s market, you may be able to negotiate seller concessions and have the seller pay some or all of your closing costs. This can free up some of your money to put toward the down payment.

FAQ

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

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 use a special loan program, such as a VA or USDA loan. Most loans require a down payment, but you can consider low-money-down loans, like FHA loans, instead.

How do I know if a zero-down or low-money-down loan is right for me?

Zero-down or low-money-down mortgages can be a good fit for people who don’t have much money saved but who want to buy a home and who have the income to afford a new mortgage payment.

What are my options if I don’t qualify for a low-money-down loan?

If you’re struggling to qualify for a low-money-down loan, consider looking for down payment assistance programs in your area. These programs can provide cash that you can put toward a down payment or closing costs.

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

The two main loan programs that don’t require a down payment, VA loans and USDA loans, have no set credit score requirements, but most lenders will want you to have a good credit score, at least 640 or so, to qualify.

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

Yes, it’s generally harder to get approved for a mortgage with no money down. The programs that offer no down payment have specific eligibility requirements, and lenders may set additional criteria for qualification.

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

While it’s possible to buy a home with no money down, you probably won’t be eligible unless you’re buying in a rural area or have served in the military. Most people should instead look into low-down-payment loans that let them get a mortgage with a down payment of 3%–5% of the home’s value.

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

¹ 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.

² Client will receive a 1-point (1.000) loan level price adjustment (LLPA) credit on HomeReady and Home Possible purchase loans locked on or after January 2, 2024. One point (1.000) is equal to 1% of the loan amount. Minimum credit amount will be $2,000. Maximum loan amount is $350,000. 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.

³ 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.

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.