Who this is for
- Eligible veterans and active-duty service members (VA)
- Buyers in USDA-eligible areas with moderate income
- First-time buyers using state or local DPA grants
- Borrowers with steady income but no savings
Typical No Money Down / Zero-Down Mortgages requirements
| VA | 0% down, no monthly mortgage insurance; funding fee (waived for many disabled veterans) |
|---|---|
| USDA | 0% down; income limits; property must be in an eligible area; upfront + annual guarantee fees |
| DPA grants | Cover 3–5%+ down payment; often forgivable after 3–5 years of occupancy |
| DPA second liens | Silent seconds repaid on sale/refinance, or amortizing seconds with a small payment |
| Minimum credit | Typically 620+ VA/USDA; DPA programs vary, often 620–640 |
| Income limits | USDA and most DPA programs cap household income |
| Closing costs | Still needed unless seller credits or lender credits cover them |
Figures are typical market ranges as of October 2026. Actual terms depend on the lender, your credit, the property and the program, and are confirmed on your Loan Estimate or term sheet.
How it works
- Check the gate you fit: VA eligibility, a USDA-eligible address and income, or a DPA program in your county.
- For DPA: apply through an approved lender, complete any required homebuyer education.
- Get pre-approved with the zero-down structure built in, the DPA terms affect your approval.
- Plan closing costs separately: “no money down” rarely means no cash to close.
- Close, then meet the DPA occupancy rules so grants stay forgiven.
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Pros and cons
Advantages
- Buys with no down payment saved
- VA has no monthly mortgage insurance at all
- DPA grants can be effectively free money if you stay put
Trade-offs
- Every program has eligibility gates, none is universal
- Closing costs still need funding
- DPA can add a second lien and resale restrictions
Documents you’ll need
- VA: certificate of eligibility (COE)
- USDA: proof the property is in an eligible area
- DPA: program application, homebuyer education certificate
- Standard income, asset and ID documentation
No Money Down / Zero-Down Mortgages FAQ
Is there really a 0%-down loan with no catch?
There are three real ones: VA, USDA, and DPA-covered loans. The “catch” is eligibility: military service, a rural-eligible address and income limits, or a DPA program with its own rules.
Can I use USDA in a suburb?
Often yes. USDA eligibility is about the map, not how the area feels, many suburbs near cities qualify. Check the USDA eligibility map for the address.
Do I still need money for closing costs?
Usually yes. Zero down covers the down payment only. Seller concessions (up to program limits) or lender credits can cover closing costs, but plan for a few thousand dollars.
What is down payment assistance, exactly?
State and local programs that grant or lend you the down payment. Grants may be forgiven after a few years of living there; silent seconds are repaid when you sell or refinance.
Can I combine DPA with an FHA loan?
Yes, that is the most common pairing. The DPA covers the 3.5% FHA down payment, and many programs also help with closing costs.
Does a VA loan really have no mortgage insurance?
Correct. VA loans have no monthly mortgage insurance. There is a one-time funding fee (often rolled into the loan), waived for veterans with service-connected disabilities.
How do I find DPA programs in my area?
Check your state housing finance agency website first, then county and city programs. A local lender who does DPA daily is the fastest path to the right program.
Do DPA grants need to be repaid?
True grants do not, as long as you meet the occupancy requirement (usually 3-5 years). Silent second liens are repaid when you sell or refinance.
Can I get seller credits on a zero-down loan?
Yes, within program limits. VA allows up to 4% in seller concessions plus additional closing cost help. FHA allows up to 6%.
Official sources
How No Money Down / Zero-Down Mortgages compare
| No Money Down / Zero-Down Mortgages | 3% Down Payment Loans | VA Purchase Loans | VA Loan Eligibility Requirements | |
|---|---|---|---|---|
| Best for | Eligible veterans and active-duty service members (VA) | First-time buyers with strong income but limited savings | Eligible buyers purchasing a primary home | Veterans checking first-time eligibility |
| Down payment | , | Can layer DPA on top for closing costs | $0 with full entitlement | , |
| Credit | Typically 620+ VA/USDA; DPA programs vary, often 620–640 | Typically 620+ conventional, 580+ FHA | , | , |
| Income docs | , | , | , | , |
Typical ranges, your Loan Estimate or term sheet confirms actual terms.
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Related programs
3% Down Payment Loans
A 3% down mortgage lets you buy a home with three cents on every dollar as your down payment, offered through our lender network where available.
VA Purchase Loans
A VA purchase loan lets eligible borrowers buy a primary home with no down payment and no monthly mortgage insurance.
VA Loan Eligibility Requirements
VA loan eligibility covers veterans, active-duty service members, many Guard and Reserve members, and certain surviving spouses.
USDA Loans
A USDA loan is a mortgage guaranteed by the U.S.
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.