Living room of a first-time homebuyer who bought their house without a down payment

How to Buy a House with No Down Payment

June 20, 2024

No-down-payment home loans and down payment assistance can help homeownership become more attainable.

One of the biggest barriers to buying a house is the down payment… but it doesn’t have to be! If you dream of owning a home but cannot afford a down payment or simply have your money set aside for other expenses, there are several options to help you achieve the dream of homeownership. 

Mortgages with No Down Payment Required

Several home loan programs allow you to get a mortgage with no money down, such as:

USDA Loans

Backed by the United States Department of Agriculture, USDA loans are an excellent option for those living in rural — or even some suburban — areas. USDA loans have flexible credit score requirements (as low as 580) and do not require a down payment.

VA Loans

If you are a veteran or active-duty military servicemember, a VA home loan might be the perfect fit for you. Not only do these loans not require a down payment, there are also no private mortgage insurance requirements and those with a minimum credit score as low as 580 can still qualify.

Wealth Building Loan

Our Wealth Building Loan program was designed with savvy homebuyers in mind. This mortgage loan is structured as a 7/6 or 10/6 adjustable-rate mortgage (ARM) with a 20-year amortization (meaning you’ll have a fixed interest rate for the first seven or ten years of the mortgage, and the total length of your mortgage will be 20 years). And, of course, zero down payment is required. 

Powerhouse 100

The Powerhouse 100 loan program provides an affordable homeownership solution for eligible homebuyers. With no down payment required, this “powerhouse” of a program allows homebuyers to keep some extra cash in their pocket up front while still keeping their monthly payments affordable.

Down Payment Assistance

Down payment assistance (DPA) is available to first-time homebuyers through state and local Housing Finance Authorities (HFAs). There are certain requirements to qualify for down payment assistance programs, such as income limits and homebuyer education courses.

Down payment assistance usually comes in the form of a forgivable grant or second lien and can provide as much as 5% of the home's purchase price. So, if you choose a home loan program that requires 3-5% down, you may be able to utilize down payment assistance and avoid paying out-of-pocket for the down payment.

National Homebuyers Fund DPA: 100% Financing for FHA Loans

The National Homebuyers Fund DPA program offers up to 5% in assistance exclusively for FHA loans. FHA only requires 3.5% down, so this program allows eligible homebuyers to experience 100% financing, plus up to 1.5% to put toward closing costs. 

Many down payment assistance (DPA) programs are offered on a state-by-state basis. However, this program can be used nearly nationwide.

To learn more about your down payment options or get started on your journey to homeownership today, find a mortgage expert in your area.