“Do I really need a down payment to buy a house?” It’s one of the most common questions first-time buyers ask, and the answer surprises people: no, not always. There are legitimate ways to buy a home with zero down — and several more to buy with almost nothing. Here’s a complete look at your no- and low-down-payment options in 2026, plus the trade-offs to weigh before you skip the down payment.
True zero-down loan programs
Two government-backed loans let eligible buyers finance 100% of the purchase price — no down payment required.
VA loans (for veterans and service members)
If you’re a qualifying veteran, active-duty service member, or eligible surviving spouse, the VA loan is the gold standard of zero-down financing. It requires 0% down, no monthly mortgage insurance, and typically offers competitive rates. There’s a one-time funding fee (which can be financed into the loan, or waived for some disabled veterans), but no down payment at all. For those who qualify, it’s hard to beat — and there’s no limit to how many times you can use your VA benefit over a lifetime.
USDA loans (for rural and many suburban areas)
The USDA loan also offers 0% down for homes in eligible rural and suburban areas — and the eligible map is far larger than most people assume, covering many towns and outer suburbs, not just farmland. There are household income limits, but if the location and your income qualify, you can buy with no down payment. It’s one of the most underused programs in the country, precisely because buyers assume they won’t qualify without checking.
The near-zero options (3% – 3.5% down)
If you don’t qualify for VA or USDA, these get you in with very little cash:
- FHA loans: 3.5% down, with flexible credit requirements.
- Conventional 3%-down programs: designed for first-time buyers, with mortgage insurance that cancels once you reach 20% equity.
On a $300,000 home, 3% down is $9,000 — and that’s before assistance enters the picture.
The secret weapon: down payment assistance
Here’s how many buyers turn a “3.5% down” loan into an effectively zero-down purchase: they pair it with down payment assistance. State and local programs offer grants, forgivable loans, and low-interest second mortgages that cover your down payment and closing costs. Stack a DPA grant on top of an FHA or conventional loan, and your out-of-pocket cash can drop close to nothing. Explore programs in your state.
Other paths to little or no money down
- Gift funds: Family can gift your entire down payment on many loans — see how gift funds work.
- Gift of equity: Buying from a relative below market value can supply your down payment — see gift of equity.
- Employer and union programs: Some offer homeownership assistance or forgivable loans.
- Credit union and state HFA specials: A few offer their own low- or zero-down products.
- Professional loans: Certain lenders offer low-down programs for specific fields like medicine or nursing.
Should you buy with no down payment?
Just because you can doesn’t mean it’s always the best move. The trade-offs of zero down:
- No equity cushion. If home values dip, you could temporarily owe more than the home is worth.
- Higher monthly payment. Financing 100% means a bigger loan and more interest over time.
- Mortgage insurance or funding fees may apply (VA has no monthly MI, but most other low-down loans do until you build equity).
That said, for many buyers the alternative to zero-down isn’t “20% down” — it’s “keep renting for five more years.” If a zero- or low-down loan gets you building equity now instead of paying a landlord, it can absolutely be worth it. Just make sure the monthly payment fits comfortably and you keep some cash in reserve. Run it through our calculators and check how much house you can afford.
How to get started
- Check VA eligibility first if you’ve served — it’s the best zero-down deal available.
- Look up whether your target area qualifies for USDA.
- If neither fits, talk to a lender about FHA or conventional 3%-down paired with assistance.
- Apply for down payment assistance through your state housing agency.
- Line up gift funds or a gift of equity if family can help.
Frequently asked questions
Can I buy a house with no money down in 2026?
Yes. VA and USDA loans offer true 0% down for eligible buyers, and down payment assistance can make FHA or conventional loans effectively zero-down.
What credit score do I need for a zero-down loan?
It varies, but many lenders look for roughly 580–640 for VA and USDA. See our credit score guide.
Is zero-down a bad idea?
Not necessarily. It means no equity cushion and a higher payment, but it can beat years of renting. Make sure the payment is comfortable and you have some cash reserves.
Do I still pay closing costs with a zero-down loan?
Usually yes, though seller concessions, gift funds, or assistance can cover them. Zero-down refers to the down payment, not necessarily every closing cost.
The bottom line
You have more no- and low-down-payment options than you probably realized. If you’re a veteran, start with a VA loan; if you’re in an eligible area, check USDA; and for everyone else, a low-down loan paired with down payment assistance can shrink your upfront cash to almost nothing. The down payment is a smaller barrier than the myths suggest — and for many first-time buyers, it’s no barrier at all.