How To Buy A House With No Money Down In 2025

We're on our way to a loan free life stock photo
PeopleImages / iStock.com

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

Is It Possible to Buy a House With No Money Down?

Yes, it’s possible to buy a house with no money down in 2025, provided you qualify for the right kind of loan.

For example, qualifying military personnel and veterans can apply for 0% down VA loans and rural homebuyers who meet the department’s income requirements can pursue no-money-down USDA loans. 

Government-Backed Loan Programs With No Down Payment

The government doesn’t issue loans directly, but select agencies guarantee loans that private lenders issue to qualifying home buyers.

VA Loans

The Department of Veterans Affairs (VA) offers eligible veterans and servicemembers access to loans with no down payment or private mortgage insurance required and comparatively low interest rates and closing costs, both for purchases and refinancing.

The program is available to:

  • Qualifying veterans
  • Qualifying active duty servicemembers
  • Qualifying family members 
  • National Guard members with at least 90 days of active service, including 30 consecutive days or more

USDA Loans

No-money-down USDA loans are available to low- and middle-income buyers in rural areas and some suburban communities. Income limits vary by locality and household size, which you can search using a USDA.gov navigation tool, but earnings cannot exceed 115% of your location’s median household income.

Low Down Payment Loan Options

There are also several paths to homeownership with small down payments. 

  • The Federal Housing Authority insures FHA loans, which require as little as 3.5% down, have flexible refinancing rules and are open to buyers with lower credit scores. However, they’re available only to first-time homebuyers who meet certain income restrictions and they require applicants to purchase mortgage insurance and participate in homeownership counseling.
  • First-time homebuyers with strong credit but limited savings can pursue Conventional 97 loans, which require applicants to put at least 3% down and purchase mortgage insurance.
  • Many states offer programs that provide first-time homebuyers with down payment assistance.
Loan TypeDown PaymentKey RequirementsWho Qualifies?
VA Loan$0Military service requiredVeterans, active-duty members, some National Guard members
USDA Loan$0Income and location limitsRural homebuyers
FHA Loan3.50%Lower credit score acceptedFirst-time buyers
Conventional 973%Higher credit score neededLow-income buyers

Alternative Ways to Buy a Home With No Money Down

Those fortunate enough to have friends or family members with the means and the will to help can use cash gifts for a down payment in many circumstances.

Those who don’t can reduce the amount financed by negotiating seller concessions like closing costs. Alternatively, lease-to-own or rent-to-own agreements give tenants the option to save money while living in a property they intend to purchase after a set time. 

Pros and Cons of Buying a House With No Money Down

The benefits of buying a home with no money down are lowering your upfront costs and skipping the years-long period of saving for a down payment that most buyers must endure on the path to homeownership.

The drawbacks are higher monthly payments, mortgage insurance costs, and, most consequentially, much higher long-term interest payments on 100% of the home’s principal cost.  

Steps to Qualify for a No Down Payment Mortgage

Take the following steps to pursue a 0% down home loan successfully. 

  • Research the qualification standards for a program for which you might qualify.  
  • Check your credit score and report, challenge any errors you find, and work to improve your credit if needed. 
  • Check in with your financial accounts and gather all documents required to qualify for the program and apply for the loan.  
  • Find a lender offering no-down-payment options.
  • Submit your application and secure pre-approval. 

Common Mistakes to Avoid

Buying a home is tricky enough, but buying one with no money down demands an extra layer of qualifying criteria, supplementary documentation and more chances to make a mistake — avoid these at all costs. 

  • Not fully understanding the eligibility requirements for your chosen 0% down loan program.
  • Choosing the wrong type of loan. 
  • Failing to budget for all the various closing costs.
  • Ignoring long-term homeownership costs like utilities, maintenance and repairs.

Good To Know

Many veterans and active duty service members are not aware of their eligibility for a no-money-down VA home loan. If you’re currently serving or are a veteran and aren’t sure if you qualify for a VA loan or other veterans benefits, check with your local VA office to find out.

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.

BEFORE YOU GO

See Today's Best
Banking Offers

Looks like you're using an adblocker

Please disable your adblocker to enjoy the optimal web experience and access the quality content you appreciate from GOBankingRates.

  • AdBlock / uBlock / Brave
    1. Click the ad blocker extension icon to the right of the address bar
    2. Disable on this site
    3. Refresh the page
  • Firefox / Edge / DuckDuckGo
    1. Click on the icon to the left of the address bar
    2. Disable Tracking Protection
    3. Refresh the page
  • Ghostery
    1. Click the blue ghost icon to the right of the address bar
    2. Disable Ad-Blocking, Anti-Tracking, and Never-Consent
    3. Refresh the page