The details
Searches for “interest-free mortgage” usually come from buyers trying to cut total cost. The closest real options are a temporary or permanent rate buydown, which lowers the rate by prepaying interest, and assistance programs with deferred or forgivable second loans.
Islamic home financing (murabaha or ijara) avoids interest by design but has its own costs, priced competitively with interest-based loans.
Run it yourself
Related loan programs
VA Loans
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs that lets eligible veterans, active-duty service members and certain surviving spouses buy with no down payment and no monthly mortgage insurance.
First-Time Homebuyer Loans
First-time homebuyer loans are mortgage options with low down payments, typically 3% conventional, 3.5% FHA or $0 VA, often paired with state or local down payment assistance.
More answers
- Is there such a thing as a free mortgage?
- What is a no-closing-cost mortgage?
- What is the difference between lender-paid and borrower-paid compensation?
- What does “lender-backed” mean on a mortgage?
- Mortgage broker or bank: which is better?
- How is DSCR calculated for a mortgage?
- What DSCR ratio do I need to qualify?
- Can an LLC get a mortgage?