Can you buy a house with no money down? What you should know

Think that’s an unrealistically high estimate? Think again. The median home sales price stood at $410,800 as of the second quarter of 2025, according to the Federal Reserve Bank of St. Louis (FRED). Even if you’re making a good salary and doing well professionally, you might not have that much cash immediately available.

Learn more: How much do you really need for a down payment on a house?

The good news is that for borrowers who qualify, there are such things as mortgages that require zero down. But there’s a catch—the main ways to get a no-down-payment mortgage are by meeting strict eligibility requirements for a VA loan or a USDA loan. And, even if you aren’t required to put up cash for a down payment, you’ll still have to pay closing costs upfront.

Read on and we’ll explain what you need to know about these loan types.

Government-backed no-down-payment home loans

VA loans

Some private lenders offer loans that are backed by the U.S. Department of Veterans Affairs (VA) and don’t require a down payment. VA loans might have lower interest rates and less stringent credit requirements than conventional loans—mortgages that aren’t part of a government program. However, VA loans are only available to eligible service members, veterans, and surviving spouses. 

You may also have to pay an upfront VA funding fee with your closing costs, which could range from around 1.25% to 3.30% of the loan amount, depending on your down payment and whether you’ve gotten a VA loan before. And, in some cases, VA loans could require a down payment if you’re buying a home while you have outstanding debt from a different VA loan. 

If you or your spouse is Native American, you may also wish to look into the VA’s Native American Direct Loan (NADL) program, which might have an even lower interest rate and typically doesn’t require a down payment. 

USDA loans

Let’s get this out of the way upfront—many prospective borrowers probably won’t qualify for a USDA loan. That’s because they’re typically meant for low- to moderate-income borrowers and because the property you wish to purchase has to be in an eligible rural area. With those caveats, here’s what you should know about buying a home with a USDA loan.

The U.S. Department of Agriculture (USDA) has two mortgage loan programs that don’t require down payments: USDA guaranteed loans and USDA direct loans. It may even be possible to get a USDA loan for more than the appraised value of the home, allowing you to use the funds to cover closing costs.

• USDA guaranteed loans: You apply with a private lender that partners with the USDA. The loans are for low- and moderate-income households and are the more common type of USDA loan. They may have lower interest rates than conventional loans, but require upfront and annual guarantee fees—1% and 0.35%, respectively, as of the time of writing.  
• USDA direct loans: You apply through your local Rural Development Service Center. Direct loans offer lower rates than USDA guaranteed loans, longer repayment terms that lead to lower monthly payments, and they don’t have any guarantee fees. However, direct loans are only available to very-low and low-income households. And if you have more than $15,000 in non-retirement assets, or $20,000 if you’re part of an “elderly” household, you may need to use the excess assets toward a down payment. 

In addition to the household income limits, USDA loans are only an option if you’re buying or building a home in an eligible rural area as we mentioned earlier—and the house has to meet certain requirements. You can use the USDA’s eligibility tools to see if you qualify for either type of loan and where the eligible areas are.

Physician and high-income profession loans

Some lenders have special loan programs for high-income professionals—most commonly people in healthcare. 

“These programs are designed for medical doctors, dentists, and sometimes other healthcare professionals,” says Jackie Boies, a senior director of partner relationships at Money Management International at the time of interview. “They recognize the unique financial situation of medical professionals, such as high student debt and high earning potential, and offer benefits tailored to their needs.”

For example, the lenders might not consider recent income history because someone finishing a residency program might not have recent income that aligns with how much they’ll earn soon. And the loans often have: 

• High loan limits 
• Very low or no down payment requirement
• Higher debt-to-income (DTI) ratio allowance
• No private mortgage insurance (PMI)

Some lenders offer similar terms to people with other high-income jobs, such as nurses, veterinarians, lawyers, and accountants. 

Remember to calculate your closing costs

Regardless of your down payment amount—or whether you have to make one at all—you will likely still need to pay closing costs when you buy a home. 

A useful rule of thumb is to expect closing costs to range from 2% to 6% of the home’s sticker price. That means, for example, you could pay $8,000 to $24,000 on a $400,000 home.

Learn more: Here’s how much you need to make to afford a $400,000 house.

The specifics can vary depending on the lender and where you’re buying, but your closing costs might include the following:

• Appraisal fee
• Credit report fee
• Flood certification
• Loan origination, processing, and underwriting fees
• Transfer taxes and recording fees
• Prepaid property taxes and insurance
• Title insurance-related fees
• Document delivery and notary fees

The Fannie Mae closing cost calculator can be a good starting point if you want to see an estimated range based on where you’re planning on buying a home. 

You may also want to budget for moving expenses, which calculators usually don’t include. 

Additionally, you could need to pay for renovations if an inspector identifies high-priority items that could cause issues with the lender or home insurance company. Or you might decide to make renovations promptly to head off an issue likely to become more expensive the longer you wait.

Pros and cons of buying a home with no down payment

Pros

• You can buy a home sooner: You won’t have to wait while you’re saving up for a down payment. If you’ve been feeling that you’d rather build equity by making mortgage payments rather than paying rent with no long-term return, this can be a major factor in the “pros” column for you. 
• You’ll have more cash: Putting less money down gives you more money for other required expenses. 

Cons

• Strict requirements: Mortgages that don’t require a down payment may have strict requirements related to your income, background, potentially your career, and what home you can buy.
• You don’t start with equity: Building equity (ownership) in your home can be an important part of establishing financial security and passing on generational wealth. You can also tap the equity with a home equity loan or line of credit, which may offer favorable rates. However, if you don’t put any money down, you’re starting with 0% equity. 
• Higher monthly bills: Putting less money down might lead to a higher interest rate and, with some loans, require you to pay for mortgage insurance. 
• Still likely to require cash: Even if you don’t have a down payment, you might need cash for closing costs, moving, and renovations. 

The takeaway

Buying a home with no down payment isn’t going to be right for everyone. For one thing, there are fairly stringent requirements to qualify for the types of mortgages that let you put zero down. And for another, you might decide fronting the cash for a down payment is worth it in terms of starting out with equity in the home or potentially snagging a lower mortgage interest rate.

If you don’t qualify for a no-down-payment mortgage, don’t despair. Conventional mortgages typically allow a minimum down payment of 5%, or even 3% if you’re a first-time homebuyer.

However, if you are eligible for a mortgage with zero down—for example, maybe you’re a veteran who can apply for a VA loan or perhaps you qualify for a physician/high-income profession loan—there are cases where this pathway to homeownership makes sense.

One of the key benefits of these loan types is the ability to get into a home sooner than perhaps you could otherwise. If a down payment is what’s standing between you and buying a house, you might decide it’s wiser to take the leap into homeownership and start building equity.