Buying a house without a down payment is possible through special mortgage programs. If you don’t have savings for a down payment but still want to own a home, here are the best strategies to achieve homeownership with little to no upfront cash.
1. Loan Programs with No Down Payment
a) VA Loans
- No down payment required for eligible veterans and active-duty military.
- No PMI required.
- Competitive interest rates.
b) USDA Loans
- Designed for rural homebuyers.
- No down payment required.
- Income restrictions apply.
2. Low Down Payment Mortgage Options
a) FHA Loans
- Requires as little as 3.5% down.
- Easier credit requirements.
- Mortgage insurance required.
b) Conventional 97 Loans
- 3% down payment.
- Lower mortgage insurance compared to FHA loans.
c) HomeReady & Home Possible Loans
- 3% down payment.
- Designed for low-income borrowers.
- Can use gift funds for the down payment.
3. Alternative Ways to Cover Your Down Payment
- Down Payment Assistance Programs – State and local programs offer grants or low-interest loans.
- Employer Homebuyer Assistance – Some companies provide home-buying benefits.
- Crowdfunding & Gifts – Family members or friends can gift funds.
Conclusion
Buying a house with no down payment requires choosing the right loan program or securing down payment assistance. Explore your options and find the best solution that works for you.