A no down payment mortgage allows first-time home buyers and repeat home buyers to purchase property with no money required at closing, except standard closing costs.

There are just two major loan programs with zero down: the USDA loan and the VA loan. Both are available to first-time home buyers and repeat buyers alike. But they have special eligibility requirements to qualify.


No down payment: USDA loans (100% financing)
The U.S. Department of Agriculture offers a 100% financing mortgage. The program is known as the ‘Rural Housing Loan’ or simply ‘USDA loan.’

The good news about the USDA Rural Housing Loan is that it’s not just a “rural loan” — it’s available to buyers in suburban neighborhoods, too. The USDA’s goal is to help “low-to-moderate income homebuyers,” wherever they may be.

No down payment: VA loans (100% financing)
The VA loan is a no-down-payment mortgage available to members of the U.S. military, veterans, and surviving spouses.

VA loans are backed by the U.S. Department of Veterans Affairs. That means they have lower rates and easier requirements for borrowers who meet VA mortgage guidelines.

Other options, including the FHA loan, the HomeReady mortgage, and the Conventional 97 loan, offer low down payment options starting at 3% down. Mortgage insurance premiums typically accompany low and no down payment mortgages, but not always.

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