🏠 No Down Payment Mortgage 2025: 7 Zero Down Loan Options (USDA, VA, Navy Federal)

Q: Which lenders offer no down payment mortgages?

Top lenders: Navy Federal Credit Union (0% down for members), Veterans United (VA loans), Rocket Mortgage (USDA/VA), Fairway Independent (DPA programs), and 300+ local lenders with state DPA grants.

🎯 Quick Answer

Yes, you can buy a home with $0 down in 2025. USDA loans (0% down, 640+ credit, rural areas), VA loans (0% down, no PMI, veterans), Navy Federal (0% down, members), and state DPA programs (3% down covered by grants).23% of first-time buyers used zero-down programs in 2024.

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7 No Down Payment Mortgage Programs (2025)

Each program has unique requirements. Compare lenders specializing in zero-down loans to find your best match.

1. USDA Loans (0% Down, Rural Areas)

USDA Loan Requirements

✅ Down Payment: 0% (100% financing)
✅ Credit Score: 640+ recommended (manual underwriting at 580+)
✅ Location: USDA-eligible rural areas (97% of US land)
✅ Income Limits: ≤115% of area median income
✅ LTV Max: 90% (best in market)
✅ Mortgage Insurance: 1% upfront + 0.35% annual

Best for: First-time buyers in suburban/rural areas. Check USDA eligibility instantly.

2. VA Loans (0% Down, No PMI, Veterans)

🎖️ VA Loan Requirements

✅ Down Payment: 0% (no limit on loan amount)
✅ Credit Score: 620+ (lender minimum)
✅ Eligibility: Active duty, veterans, National Guard, surviving spouses
✅ PMI: None (saves $200+/month)
✅ Funding Fee: 2.15% (waived for disabled vets)
✅ DTI Max: 41% (flexible with residual income)

Best for: Military members and veterans. Get VA loan pre-approval in 24 hours.

3. Navy Federal Credit Union (0% Down, Members)

⚓ Navy Federal Requirements

✅ Down Payment: 0% (up to $453,100 in most areas)
✅ Credit Score: 620+ (flexible underwriting)
✅ Membership: Military, DoD, veterans, family members
✅ PMI: Required if LTV > 80%
✅ Rates: Highly competitive (member-owned)

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4. State Down Payment Assistance (DPA) Programs

Most states offer DPA grants covering 3-5% down payment. Combine with FHA (3.5% down) or conventional (3% down) to achieve zero out-of-pocket.

State	Program	Grant Amount	Income Limit
California	CalHFA MyHome	3.5% grant	Varies by county
Texas	TSAHC MCC	Up to 5%	$109,200
Florida	Florida Assist	$7,500	Varies
New York	SONYMA	Up to $15,000	$174,150

Search DPA programs in your state and combine with FHA or conventional loans.

5. Conventional 97 LTV + DPA (3% Down Covered)

Fannie Mae HomeReady and Freddie Mac Home Possible allow 3% down. Combine with state DPA grants to cover the 3%, achieving zero out-of-pocket.

📋 Conventional 97 + DPA Requirements

✅ Down Payment: 3% (covered by DPA grant)
✅ Credit Score: 620+ (680+ for best rates)
✅ Income Limits: ≤80% AMI (HomeReady/Home Possible)
✅ DTI Max: 45% (50% with compensating factors)
✅ PMI: Required until 20% equity

6. FHA Loan + DPA (3.5% Down Covered)

FHA loans require 3.5% down with 580+ credit. Many states offer DPA grants covering the full 3.5%.

📋 FHA + DPA Requirements

✅ Down Payment: 3.5% (covered by DPA)
✅ Credit Score: 580+ (500+ with 10% down)
✅ DTI Max: 43% (50% with compensating factors)
✅ MIP: 1.75% upfront + 0.55-0.85% annual
✅ Property: Primary residence (1-4 units)

7. Physician Loans (0-5% Down, Doctors Only)

Medical professionals (MD, DO, DDS, DVM) can get 0-5% down with no PMI on jumbo loans up to $1M+.

🩺 Physician Loan Requirements

✅ Down Payment: 0-5% (no PMI!)
✅ Loan Amount: Up to $1M+ (jumbo)
✅ Eligible: MD, DO, DDS, DMD, DVM, DPM
✅ Student Loans: Deferred loans excluded from DTI
✅ Employment: Contract or recent residency completion

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Top No Down Payment Mortgage Lenders (2025)

Not all lenders offer zero-down programs. Compare specialized zero-down lenders to find the best rates.

Lender	Programs	Min Credit	Best For
Navy Federal	VA, 0% conventional	620	Military members
Veterans United	VA only	620	VA specialists
Rocket Mortgage	USDA, VA, DPA	580	Fast online process
Fairway Independent	USDA, VA, DPA	620	State DPA experts
Guaranteed Rate	USDA, VA, FHA+DPA	580	Competitive rates

Pro Tip: Get quotes from 3+ lenders to compare rates and fees. Rates can vary by 0.25-0.50% between lenders.

No Down Payment Mortgage: Pros & Cons

✅ Advantages

💰
Buy Now vs Wait Years: Start building equity today instead of saving $40K+ for 20% down
📈
Preserve Cash Reserves: Keep savings for emergencies, repairs, or investments
🏠
Lock in Rates: Buy before home prices increase 3-5% annually
🎯
Build Equity Immediately: Monthly payments build ownership vs rent

⚠️ Disadvantages

💸
Higher Monthly Payment: PMI adds $100-200/month (except VA loans)
📉
Negative Equity Risk: If home value drops 5%, you owe more than it's worth
🔒
Location Restrictions: USDA limited to rural areas, VA requires military service
💰
Closing Costs Still Required: Need $5K-$10K for closing (or seller concessions)

How to Qualify for a No Down Payment Mortgage

📋 Qualification Checklist

✅ Credit Score: 620+ (USDA/VA), 580+ (FHA+DPA)
✅ DTI Ratio: ≤43% (50% with compensating factors)
✅ Employment: 2 years stable income (or job offer for physicians)
✅ Reserves: 2-6 months PITI in savings (varies by program)
✅ Property: Must meet program requirements (USDA rural, primary residence, etc.)
✅ Income Limits: Check USDA/DPA program limits for your area

Not sure if you qualify? Get pre-qualified in 3 minutes to see which programs you're eligible for.

Frequently Asked Questions

Can I get a mortgage with no down payment?

Yes! USDA loans (rural areas, 640+ credit), VA loans (veterans, 0% down, no PMI), Navy Federal (members), and state DPA programs (3-5% grants) allow zero out-of-pocket. 23% of first-time buyers used these programs in 2024.

What credit score do I need for a no down payment mortgage?

USDA: 640+ recommended. VA: 620+ (lender minimum). Navy Federal: 620+. FHA with DPA: 580+. Lower scores may qualify with manual underwriting and compensating factors.

Which lenders offer no down payment mortgages?

Top lenders: Navy Federal (0% for members), Veterans United (VA specialists), Rocket Mortgage (USDA/VA/DPA), Fairway Independent (DPA experts), Guaranteed Rate (competitive rates). Compare 3+ lenders for best rates.

Do I still need money for closing costs?

Yes, closing costs typically run 2-5% ($5K-$10K on a $250K home). However, you can negotiate seller concessions (up to 6% on USDA/VA), roll costs into the loan (VA), or use lender credits to cover closing costs.

Is 0% down a bad idea?

Not necessarily. If you have stable income, good credit, and plan to stay 5+ years, 0% down lets you build equity now vs waiting years to save. However, ensure you have 3-6 months reserves for emergencies.