BUYERS December 25, 2023

Is it possible to buy a home with no down payment?

No Money Down when buying a house

Can You Buy a House With No Money Down?

Yes, it is possible to buy a home with no down payment, but it’s not common for conventional mortgages. Here are a few options whether this is your second home or you are a first time home buyer that might help you avoid a down payment:


  1. VA Loans: Offered to veterans and active-duty service members, VA loans typically don’t require a down payment.
  2. USDA Loans: Backed by the U.S. Department of Agriculture, USDA loans are designed to promote homeownership in rural and suburban areas. Eligible borrowers can sometimes purchase a home with no down payment.
  3. Navy Federal Credit Union: Offers a zero-down payment mortgage option for its members, including military personnel and certain federal employees.
  4. State and Local Programs: Some states or local agencies offer down payment assistance programs or grants to help homebuyers, especially first-time buyers.
  5. Gift Funds: Some conventional loan programs allow for the down payment to come in the form of a gift from a family member or close acquaintance.


Buyers have many loan options. The majority of all buyers use conventional financing to purchase a home. Among first-time buyers, 23% used an FHA loan. FHA loans allow borrowers to put down just a 3.5% down payment. A mortgage broker or housing counselor can discuss loan options available to buyers. Another resource to research for potential home buyers is NAR, 2023).”

However, it’s essential to consider that not having a down payment often means borrowing more, leading to higher monthly mortgage payments and potentially higher interest costs over the life of the loan. Buyers should also be aware of any additional fees or requirements associated with no-down-payment programs.