Quick Answer: Can You Buy a House with No Money Down?
Yes. In 2026, there are 7 legitimate ways to buy a home with little or no money down:
🎖️ VA Loan
$0 down • Veterans/military • No PMI
🌾 USDA Loan
$0 down • Rural/suburban • Income limits
🩺 Doctor/Physician Loan
$0 down • Medical pros • No PMI
🎁 DPA Grants
$5K-$25K FREE • All 50 states
💳 Lender Credits
Lender pays costs • Higher rate trade
👨👩👧 Gift Funds
100% gift allowed • Family/employer
🏛️ State/Local Programs
Forgivable loans + deferred payments • First-time buyers
All No-Money-Down Options: Side-by-Side Comparison
| Option | Down Payment | Who Qualifies | Rate (2026) | PMI? | Catch |
|---|---|---|---|---|---|
| VA Loan | $0 (true zero) | Veterans, active military, Guard/Reserve, surviving spouses | 5.85-6.25% | No PMI | 2.15% funding fee (financeable) |
| USDA Loan | $0 (true zero) | Rural/suburban areas, income ≤$110,650 | 5.75-6.25% | 0.35%/yr | Geographic + income limits |
| Doctor Mortgage | $0 (some lenders) | MD, DO, DDS, DMD, PharmD, JD (varies) | 6.25-6.75% | No PMI | Slightly higher rates |
| DPA Grants | $0 effective | First-time buyers, income limits vary by state | Market rate | Varies | Must meet program requirements |
| Lender Credits | Covers costs | Anyone (still need min down payment) | +0.125-0.5% | Yes (if <20%) | Higher rate = more interest long-term |
| Gift Funds | $0 out-of-pocket | Anyone with family/employer willing to gift | Market rate | Varies | Gift letter + documentation required |
| State Programs | $0 effective | First-time buyers, income limits by state | Market rate | Varies | May require 3-5 year residency |
1. VA Loan: The Best Zero-Down Mortgage (If You Qualify)
The VA loan is the gold standard of no-money-down mortgages. Available to veterans, active-duty service members, National Guard/Reserve, and surviving spouses, it offers true $0 down, no PMI, and typically the lowest rates on the market. Check your VA eligibility in 60 seconds →
VA Loan Zero-Down Highlights:
- ✓ $0 down payment on homes up to $1.2M+ (no loan limit for eligible veterans)
- ✓ No PMI ever — saves $150-$400/month vs conventional
- ✓ Lowest rates: 5.85% average in April 2026 (0.25-0.5% below conventional)
- ✓ No minimum credit score (VA guideline), but lenders want 580-620+
- ✓ Seller can pay ALL closing costs + up to 4% in concessions
- ! VA Funding Fee: 2.15% first use ($8,600 on $400K) — can be rolled into loan
- ! Exemptions: Disabled veterans pay $0 funding fee
2. USDA Loan: Zero Down for Rural & Suburban Buyers
The USDA loan is the best-kept secret in mortgages. Despite the name, it's not just for farms — 97% of US land area is eligible, including many suburbs 20-40 miles from major cities. See if your area qualifies for $0 down →
USDA Zero-Down Requirements:
- ✓ $0 down payment — 100% financing
- ✓ Low rates: 5.75-6.25% (often below conventional)
- ✓ Low MI: 0.35% annual (vs FHA's 0.55%)
- ✓ Seller concessions: Up to 6%
- ! Income limit: $110,650 (1-4 person household, standard areas)
- ! Location: Must be USDA-eligible area (check USDA map)
- ! Credit score: 640+ (most lenders)
- ! 1% guarantee fee ($4,000 on $400K) — can be financed
3. Doctor/Physician Mortgage: Zero Down for Medical Professionals
If you're a medical professional (MD, DO, DDS, DMD, PharmD), physician mortgage loans let you buy with $0 down, no PMI, and student loan debt treated favorably. Some programs extend to JDs, CPAs, and other advanced-degree professionals.
Doctor Mortgage Key Features:
| Feature | Doctor Mortgage | Conventional |
|---|---|---|
| Down Payment | 0-5% | 3-20% |
| PMI | None (even at 0% down) | Required if <20% down |
| Student Loans | IBR payment used for DTI | Full payment or 1% of balance |
| Max Loan | $1M-$2M+ | $806,500 (conforming) |
| Rate | 6.25-6.75% | 6.10-6.50% |
Lenders offering 0% down doctor mortgages: Truist, Fifth Third, Huntington, BMO Harris, SunTrust.
Not Sure Which $0 Down Option Is Best for You?
Compare personalized rates from lenders offering zero-down programs. Free, 60 seconds, no commitment.
Compare Zero-Down Lenders →4. Down Payment Assistance Grants: Free Money ($5K-$25K)
Over 2,000 DPA programs exist across all 50 states. Many offer outright grants that never need to be repaid. Combined with a 3% down conventional or 3.5% FHA loan, these grants effectively create a no-money-down purchase.
Top DPA Programs by State (2026):
| State | Program | Amount | Type |
|---|---|---|---|
| Texas | TDHCA My First Texas Home | Up to 5% of loan | Grant (FREE) |
| California | CalHFA MyHome | Up to 3.5% | Deferred loan |
| Florida | FL Housing Corp | Up to $15,000 | Grant (FREE) |
| Georgia | Georgia Dream | Up to $10,000 | Grant (FREE) |
| Nationwide | Chenoa Fund | 3.5% of loan | Forgivable (36 months) |
5. Lender Credits: Trade a Higher Rate for $0 Closing Costs
Lender credits won't eliminate your down payment, but they can cover $2,000-$8,000+ in closing costs — meaning the only cash you need is the minimum down payment (which can come from a gift or DPA).
How Lender Credits Work:
| Rate Increase | Lender Credit ($400K Loan) | Monthly Impact | Break-Even |
|---|---|---|---|
| +0.125% | ~$2,000 | +$30/mo | 5.5 years |
| +0.25% | ~$4,000 | +$60/mo | 5.5 years |
| +0.50% | ~$8,000 | +$120/mo | 5.5 years |
Best strategy: Use lender credits if you plan to refinance or sell within 5 years. You'll save at closing and refinance to a lower rate later. Compare lenders offering credits →
Combine 2+ Strategies for True $0 Out of Pocket
DPA grant + lender credits + seller concessions = $0 at closing. See which lenders stack these programs.
Find Lenders That Stack Programs →6. Gift Funds: Let Family Cover Your Down Payment
Every major loan type allows gift funds for down payment. On an FHA loan, 100% of the 3.5% down can come from a gift. Here are the rules:
Gift Fund Rules by Loan Type:
- FHA: 100% gift allowed from family, employer, labor union, charity, or government agency. No minimum borrower contribution.
- Conventional (3-5% down): Gift can cover 100% of down payment IF from family member. Borrower may need to contribute 5% from own funds for some programs.
- Conventional (20%+ down): 100% gift allowed from anyone, including friends.
- VA: Gift allowed from anyone. No restrictions.
- USDA: Gift allowed from family members.
📝 Gift Letter Requirements:
A signed letter stating: donor name, relationship, gift amount, property address, and statement that no repayment is expected. Plus bank statements showing the transfer.
7. State & Local First-Time Buyer Programs
Beyond DPA grants, many states offer forgivable second mortgages and deferred-payment loans that cover your entire down payment. After 3-5 years of living in the home, the loan is forgiven completely.
How Forgivable Loans Work:
- Apply for a state housing program (e.g., TDHCA in Texas, CalHFA in California)
- Get approved for a “silent second mortgage” covering 3-5% down payment
- The second mortgage has 0% interest and $0 monthly payments
- Live in the home for 3-5 years (varies by program)
- Loan forgiven! You owe nothing. The down payment was effectively free.
Which No-Money-Down Option Is Best for You?
🎖️ You're a veteran or active military
→ VA loan is #1. Best rates, no PMI, no down payment. No question. Check VA eligibility
🌾 You live in a suburban or rural area
→ USDA loan. $0 down with lowest fees. Check if your area qualifies. Check USDA eligibility
🩺 You're a doctor, dentist, or medical professional
→ Physician mortgage. 0% down, no PMI, student loans treated favorably.
🏠 You're a first-time buyer in a city
→ FHA (3.5%) + DPA grant or gift funds. Get the down payment covered, then use lender credits for closing costs. Get FHA pre-approved
💰 You have family willing to help
→ Gift funds + conventional 3% down. Lowest PMI rates and best flexibility. Get matched with low-down lenders →
Real Example: Buying a $350K Home with $0 Out of Pocket
Here's how a first-time buyer in Texas used three strategies combined to buy with truly $0 out of pocket:
| Purchase Price | $350,000 |
| FHA Down Payment (3.5%) | -$12,250 needed |
| TDHCA Grant (5%) | +$17,500 (FREE) |
| Closing Costs | -$8,500 needed |
| Seller Concessions (2%) | +$7,000 |
| Lender Credit (+0.125%) | +$2,000 |
| Cash at Closing | $0 (with $5,250 surplus!) |
The surplus $5,250 from the grant was applied to prepaid items (property taxes, insurance escrow). Truly zero cash from the buyer.
Ready to Buy a Home with $0 Down?
Get pre-approved in 2 minutes. See which zero-down programs you qualify for. No SSN required, soft pull only.
Find My $0 Down Options →Free • No commitment • 60 seconds
Frequently Asked Questions
Can you really buy a house with no money down in 2026?
What credit score do I need for a no money down mortgage?
What is the catch with zero down payment mortgages?
Is it better to put money down or use a zero down mortgage?
Can I use gift money for a down payment?
What are the income limits for USDA zero down loans?
Related Guides
VA Loan Requirements 2026
$0 down, no PMI. Complete VA eligibility guide.
USDA Loan Guide 2026
Zero down for rural & suburban areas.
DPA Programs by State
2,000+ programs. Grants up to $25K.
Meet Sarah
Senior Mortgage Advisor & VA Loan Specialist
Sarah Mitchell brings over 12 years of mortgage industry expertise, specializing in VA loans and first-time homebuyer programs. As a certified NMLS professional, she has helped thousands of veterans and military families achieve homeownership through specialized loan programs. Her deep understanding of VA benefits and down payment assistance programs makes her a trusted advisor for service members transitioning to civilian life.
EXPERTISE:
KEY ACHIEVEMENT:
Helped 2,500+ veterans secure home loans