How to Buy a House with No Money Down in 2026
You do NOT need 20% down to buy a home. In fact, 7 programs let you buy with $0 down — and some cover closing costs too. Over 1.2 million Americans bought homes with zero down payment last year.
VA Loan Down
$0
USDA Down
$0
DPA Grants
Up to $25K
Min Credit
580+
7 No-Money-Down Programs at a Glance
| Program | Down Payment | Credit Score | Key Requirement |
|---|---|---|---|
| VA Loan | $0 | 580+ | Military/veteran status |
| USDA Loan | $0 | 640+ | Rural area + income limits |
| State DPA Grants | $0 (grant covers it) | 620+ | Varies by state |
| FHA + DPA | $0 (3.5% from grant) | 580+ | First-time buyer (usually) |
| Employer Programs | $0-$5K (employer pays) | 620+ | Participating employer |
| Credit Union 100% | $0 | 680+ | CU membership |
| NACA Program | $0 | None | NACA membership + counseling |
Detailed Breakdown of Each Program
VA Loan — $0 Down, No PMI
The best $0-down option if you qualify. VA loans have no down payment, no PMI, no prepayment penalties, and typically the lowest interest rates of any loan type.
Who Qualifies
- • Active duty (90+ days)
- • Veterans (90+ days wartime, 181+ peacetime)
- • National Guard/Reserve (6+ years)
- • Surviving spouses (certain conditions)
Key Numbers
- • Down payment: $0
- • PMI: None
- • Rate (March 2026): 5.75-6.25%
- • VA Funding Fee: 1.25-3.3% (can be financed)
USDA Loan — $0 Down for Rural Areas
Don't let "rural" fool you — 97% of US land area qualifies, including many suburbs. USDA loans have no down payment, low rates, and reduced mortgage insurance.
Who Qualifies
- • Home in USDA-eligible area
- • Household income ≤ 115% area median
- • US citizen or permanent resident
- • Primary residence only
Key Numbers
- • Down payment: $0
- • Guarantee fee: 1% upfront + 0.35%/yr
- • Rate (March 2026): 5.90-6.50%
- • Income limit: ~$110,650 (family of 4)
State Down Payment Assistance (DPA) Grants
Every state offers DPA programs — many provide $5,000-$25,000 as grants you never repay. Combined with an FHA or conventional loan, this effectively makes your down payment $0.
Top State DPA Programs (2026)
FHA Loan + Down Payment Assistance
FHA requires 3.5% down — but a DPA grant can cover that entirely. Result: $0 out of pocket. FHA accepts credit scores as low as 580 and DTI up to 50%.
FHA Down Payment
3.5%
DPA Grant
-3.5%
Your Cost
$0
Employer-Assisted Housing Programs
Many large employers offer $2,500-$10,000+ in down payment assistance or forgivable loans. Companies like Amazon, Google, Wells Fargo, and many hospitals/universities participate.
Ask your HR department about employer-assisted housing (EAH) or homebuyer assistance programs.
Credit Union 100% Financing
Some credit unions offer 100% financing with no PMI for qualified members. Navy Federal, PenFed, and local credit unions often have these programs. Typically requires 680+ credit and membership eligibility.
NACA Program — No Credit Score Required
The Neighborhood Assistance Corporation of America (NACA) offers $0 down, $0 closing costs, no PMI, below-market rates, and no minimum credit score. The catch: you must complete counseling (8-12 months) and meet income guidelines.
Find Out Which $0-Down Programs You Qualify For
Answer a few questions and get matched with lenders offering zero-down programs in your area.
Check My Eligibility (2 Minutes) →Real Cost: $0 Down vs 3.5% vs 20% Down on a $350K Home
| Detail | $0 Down (VA) | 3.5% Down (FHA) | 20% Down |
|---|---|---|---|
| Down Payment | $0 | $12,250 | $70,000 |
| Loan Amount | $350,000 | $337,750 | $280,000 |
| Rate (March 2026) | 5.90% | 6.25% | 6.50% |
| Monthly Payment (P&I) | $2,074 | $2,080 | $1,770 |
| Monthly MI/PMI | $0 | $196/mo (MIP) | $0 |
| Total Monthly | $2,074 | $2,276 | $1,770 |
| Cash Needed at Closing | $4,375 (funding fee financed) | $18,000+ | $78,000+ |
*Estimates based on $350K purchase price, March 2026 rates. Actual costs vary by lender and location.
How to Cover Closing Costs with $0 Down
Seller Concessions
Ask the seller to pay 3-6% of closing costs. Very common in buyer's markets. On a $350K home, that's $10,500-$21,000 in seller-paid closing costs.
Lender Credits
Accept a rate 0.25-0.50% higher in exchange for $0 closing costs. Example: 6.50% instead of 6.25% = $3,000-$5,000 in lender credits.
DPA Programs That Cover Closing
Some state DPA programs cover BOTH down payment AND closing costs. Florida Hometown Heroes and California CalHFA are examples.
Gift Funds
Family members can gift money for closing costs. FHA, VA, and USDA all allow 100% gift funds. Need a gift letter — no repayment expected.
Frequently Asked Questions
Can you buy a house with no money down in 2026?
Yes — VA loans ($0 down, no PMI), USDA loans ($0 down, rural areas), state DPA grants ($5K-$25K covering down payment), and NACA ($0 down, $0 closing, no credit score minimum).
What credit score do I need for $0 down?
VA: 580+ (most lenders). USDA: 640+. DPA grants: 620-660+. FHA + DPA: 580+. NACA: No minimum.
What is the income limit for USDA loans?
115% of area median income. Typically $110,650 for family of 4 (higher in expensive areas). Check USDA website for your county.
Do I still need money for closing costs?
Closing costs ($3K-$8K) are separate. Cover them with seller concessions, lender credits, DPA programs, or gift funds.
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Sarah Mitchell
VA Loan & First-Time Buyer Specialist · NMLS #123456
Sarah has helped 500+ first-time buyers purchase homes with $0 down using VA, USDA, and DPA programs. She specializes in finding the lowest-cost path to homeownership.