Can you really buy a house with no money down?
Yes, there are several options available that can help you achieve homeownership with little or no money down.
In this blog post, we’ll explore the top 6 ways you can make your dream of buying a house with no money down a reality.
Table of Contents
Can You Buy a House With No Money Down?
Yes, you can buy a home with no money down.
A “no down payment mortgage,” also known as a 100% financing mortgage, allows you to purchase a home without making an upfront down payment.
While these types of loans were more readily available before the 2008 financial crisis, they are less common today.
However, there are still some great options to explore if you’re looking for a no down payment mortgage.
How to Buy a House With No Money Down [2023]
Here’s a list of the top 6 programs with 0 money down home loans right now:
#1. VA Loans:
- Eligibility: VA loans are available to eligible veterans, active-duty service members, National Guard members, and some surviving spouses.
- Benefits: VA loans are backed by the U.S. Department of Veterans Affairs and often require no down payment. They typically offer competitive interest rates and do not require private mortgage insurance (PMI).
- Considerations: While VA loans don’t require a down payment, there may still be some closing costs involved. Additionally, borrowers must meet specific service and credit requirements.
#2. USDA Loans:
- Eligibility: USDA loans, also known as Rural Development loans, are designed for low-to-moderate-income homebuyers looking to purchase homes in designated rural areas.
- Benefits: USDA loans often require no down payment, and the interest rates can be competitive. They also have more lenient credit requirements compared to conventional loans.
- Considerations: To qualify, your household income must meet USDA guidelines, and the property must be in an eligible rural area as defined by the USDA.
#3. Navy Federal Credit Union (NFCU):
- Eligibility: NFCU offers no down payment mortgages to its members, primarily serving the military and their families.
- Benefits: NFCU’s HomeBuyers Choice program allows eligible members to finance 100% of the purchase price with no down payment or PMI.
- Considerations: You must be a member of NFCU to access these loans.
#4. State and Local Down Payment Assistance Programs:
- Eligibility: Many states and local governments offer down payment assistance programs to help first-time homebuyers, low-income individuals, and other eligible groups.
- Benefits: These programs can provide grants, forgivable loans, or low-interest loans that effectively cover your down payment.
- Considerations: Eligibility requirements and the amount of assistance can vary widely by location, so research programs available in your area.
#5. Credit Unions and Community Banks:
- Some credit unions and community banks may offer specialized mortgage programs that require little to no down payment. These programs are often designed to support local homebuyers.
#6. Specialized Lenders:
- Some specialized lenders may offer no down payment mortgage options but be cautious and do thorough research when considering these options, as they may come with higher interest rates and fees.
Conclusion & Wrap-Up
It’s important to note that while no down payment mortgages can make homeownership more accessible, they also come with their own set of considerations.
For example, not making a down payment may lead to higher monthly mortgage payments, and you may need to pay for private mortgage insurance (PMI) in some cases to protect the lender in the event of default.
Before pursuing a no down payment mortgage, consult with a mortgage professional who can help you explore the available options, assess your eligibility, and determine which loan program aligns best with your financial situation and homeownership goals.
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About the Author
Brian Reese is a senior advisor and co-owner at District Lending. He is one of the world’s leading experts in veteran benefits, having helped millions of veterans secure their financial future since 2013. Brian is the founder VA Claims Insider, an education-based Coaching & Consulting company whose mission is to educate and empower veterans to get the VA disability benefits they’ve earned for their honorable service. A former active-duty air force officer, Brian deployed to Afghanistan in support of Operation Enduring Freedom. He is a distinguished graduate of management of the United States Air Force Academy and earned his MBA as a National Honor Scholar from the Spears School of Business at Oklahoma State University.
In Brian’s Words:
“As a military veteran, I’ve made it my life’s mission to help people live happier and wealthier lives. District Lending brings this mission to life. We believe in integrity, honesty, and transparency, which is why you’ll see our rates right on our website. You’ll find lower rates and zero lending fees, which means you can buy your dream home for less. The savings are passed on to you — the way it should be.”
– Brian Reese, Advisor and Co-Owner, District Lending
