🏠 The Truth About Down Payments in 2025
The biggest myth in real estate is that you need 20% down to buy a home. The reality? The average first-time buyer puts down just 6%, and millions buy with ZERO down payment.
💡 Did You Know?
On a $400,000 home, 20% down = $80,000 cash needed. With a zero-down program, you could buy the SAME home with $0 down and use that $80,000 for furniture, renovations, or keep it as emergency savings.
Here are the 3 main ways to buy a home with zero down payment in 2025:
🎖️ VA Loans: $0 Down for Veterans
VA loans are the gold standard of zero-down mortgages. If you're a veteran, active military, National Guard, Reserve, or surviving spouse, you likely qualify.
✅ VA Loan Benefits
- ✓$0 down payment - 100% financing
- ✓No PMI ever - Save $200-400/month
- ✓Lowest rates - Typically 0.25-0.5% lower
- ✓No minimum credit score (620 typical)
- ✓Easier qualification - Higher DTI allowed
- ✓Reusable benefit - Use multiple times
📋 Who Qualifies?
- • 90+ days active duty (wartime)
- • 181+ days active duty (peacetime)
- • 6+ years National Guard/Reserve
- • Surviving spouse of veteran
- • Current active duty members
💰 Real Savings Example: $400,000 Home (2026 Rates)
Conventional (20% down):
- • Down payment: $80,000 cash needed
- • Rate: 6.45%
- • Payment: $2,023/mo
- • PMI: $0 (20% down)
- • Total: $2,023/mo + $80K upfront
VA Loan ($0 down):
- • Down payment: $0 (keep $80K!)
- • Rate: 5.95% (0.5% lower)
- • Payment: $2,387/mo
- • PMI: $0 (never required!)
- • Total: $2,387/mo + $0 upfront
Keep $80,000 in your pocket + lower rate + no PMI = VA wins! Plus funding fee (2.15%) can be rolled into loan. Check VA eligibility NOW before rates rise!
🏡 USDA Loans: $0 Down for Rural Buyers
USDA loans offer 100% financing with no down payment for homes in eligible rural and suburban areas. 97% of the US land mass qualifies!
✅ USDA Loan Benefits
- ✓$0 down payment - 100% financing
- ✓Low mortgage insurance - 0.35% annually
- ✓Competitive rates - Often below conventional
- ✓Flexible credit - 640 minimum
- ✓Seller can pay closing costs
📋 Requirements
- • Home in USDA-eligible area
- • Income ≤ 115% of area median
- • 640+ credit score
- • Primary residence only
- • US citizen or permanent resident
💡 Surprising Fact
Many suburban areas near major cities qualify for USDA loans! Areas you'd never think of as "rural" are eligible. Check the USDA eligibility map or have a lender check for you.
💰 Down Payment Assistance: Grants + Forgivable Loans
Even if you don't qualify for VA or USDA, over 2,500 down payment assistance programscan cover your entire down payment. Many are grants that never have to be repaid!
🎁 Types of Assistance
- ✓Grants - FREE money, never repaid
- ✓Forgivable loans - Forgiven after 5-10 years
- ✓Deferred loans - No payments until you sell
- ✓Matched savings - 2:1 or 3:1 match
💵 Typical Amounts
- • State programs: $5,000-$25,000
- • City programs: $10,000-$100,000
- • Employer programs: $5,000-$15,000
- • Nonprofit programs: $3,000-$10,000
🏆 Top State Programs (2026 Updated)
California: Up to $150,000 (CalHFA Dream For All)
Texas: Up to $25,000 (My First Texas Home)
Florida: Up to $35,000 (Florida Assist)
New York: Up to $100,000 (SONYMA)
Colorado: Up to $25,000 (CHFA Down Payment)
Georgia: Up to $12,500 (DCA Down Payment)
2026 Pro Tip: Stack DPA with FHA 3.5% down = you only need $14K cash on $400K home, then DPA covers $14K = $0 out of pocket! Find lenders who work with DPA programs.
📊 Zero Down Options Compared
| Feature | VA Loan | USDA Loan | FHA + DPA |
|---|---|---|---|
| Down Payment | $0 | $0 | $0* |
| Who Qualifies | Veterans, Military | Rural/Suburban Buyers | Most Buyers |
| Min. Credit Score | None (620 typical) | 640 | 580 |
| Mortgage Insurance | None! | 0.35%/year | 0.55%/year + 1.75% upfront |
| Income Limits | None | 115% of AMI | Varies by program |
| Location Limits | None | Rural/Suburban only | Varies by program |
| Current Rate (Dec 2026) | 5.95% | 6.25% | 6.15% |
*With down payment assistance covering 3.5% FHA minimum
🎯 Which Zero-Down Option is Best for You?
🎖️ Choose VA Loan If:
- ✓ You're a veteran, active military, or surviving spouse
- ✓ You want the lowest rates and no PMI
- ✓ You want to buy anywhere (no location restrictions)
- ✓ You have any credit score (even below 620)
🌾 Choose USDA Loan If:
- ✓ You're buying in a rural or suburban area
- ✓ Your income is below 115% of area median
- ✓ You have 640+ credit score
- ✓ You're not a veteran (VA is better if you are)
💰 Choose FHA + DPA If:
- ✓ You don't qualify for VA or USDA
- ✓ You're buying in an urban area
- ✓ You have lower credit (580+)
- ✓ Your state has good DPA programs
❓ Frequently Asked Questions
Is it smart to buy a house with no money down?
It can be! Zero-down loans let you keep cash for emergencies, renovations, or investments. The key is ensuring you can afford the monthly payment. VA loans are especially smart because they have no PMI and the lowest rates.
What credit score do I need for a zero-down mortgage?
VA loans have no official minimum (620 typical). USDA requires 640. FHA with DPA requires 580. Some DPA programs work with scores as low as 620.
Do I still need money for closing costs?
Yes, closing costs are separate from down payment (typically 2-5% of loan). However, sellers can often pay your closing costs, and many DPA programs cover closing costs too.Ask a lender about zero-cost options.
Will I have a higher interest rate with no down payment?
Not necessarily! VA loans actually have LOWER rates than conventional loans despite $0 down. USDA rates are competitive. Only FHA rates are slightly higher, but DPA can offset the cost.
🏠 Ready to Buy with $0 Down in 2026?
Don't let a down payment stop you from homeownership. 20M+ Americans qualify for VA, USDA, and DPA programs. Check your eligibility in 2 minutes—save $80K vs 20% down! With rates at 6.45% and spring price increases coming, NOW is the time to act.