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 Sept 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 →Compare 5+ Lender Rates in 2 Minutes
The same borrower on the same day gets different rates from different lenders. On a $400K loan, a 0.50% gap = $32,000 over 30 years. Soft pull only — no SSN needed for initial quotes.
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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.
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