Can You Buy a House With No Money Down? 2026 Options

Yes, you can buy a house with no money down, but only two mainstream loan programs actually go to $0: the VA loan, for eligible veterans and service members, and the USDA guaranteed loan, for moderate-income buyers in eligible rural areas. Most of what gets sold as "no money down" is really low money down. FHA needs 3.5%, Fannie Mae's HomeReady needs 3%, and assistance programs or gifts can sometimes cover that slice for you. And on every one of them, $0 down still isn't $0 at closing.

No-money-down options at a glance

The VA rows come from VA's funding fee and closing costs page and its entitlement and loan limits page. The USDA fee row comes from USDA Rural Development's FY2027 fee notice, which sets "an upfront guarantee fee of 1.00 percent and an annual fee of .35 percent." The FHA rows come from HUD Handbook 4000.1 and the premium table in Mortgagee Letter 2023-05.

The two true $0-down loans

VA loans

VA's guaranty is what makes $0 down possible. VA's funding fee page says the program "doesn't require down payments or monthly mortgage insurance," and the fee exists to offset that cost to taxpayers. If you have full entitlement, VA says you don't have a loan limit, "as long as you can afford the loan amount and the property appraisal supports the purchase price of the home." The $832,750 figure you'll see quoted is the 2026 baseline conforming loan limit. It isn't a VA cap on a full-entitlement buyer; county limits only come into a VA loan when part of your entitlement is still charged to a prior VA loan and hasn't been restored.

You'll need a down payment on a VA loan in two main cases. One is when part of your entitlement is still in use and the loan is bigger than your remaining entitlement covers (most lenders want entitlement plus cash to cover 25%). Even then, VA's own example shows a veteran with $50,000 of entitlement in use, buying in a county with a $900,000 limit, could borrow up to $700,000 before most lenders would ask for a down payment. The other is when the home appraises below the contract price. Our guide to the VA loan down payment walks through each one with numbers.

The cost of $0 down on a VA loan is the funding fee. On a first-use purchase with less than 5% down it's 2.15% of the loan amount; after first use with less than 5% down, it's 3.3%. You can pay it at closing or roll it into the loan. You won't pay it at all if you receive VA compensation for a service-connected disability. The VA funding fee calculator gives you the exact figure for your price and service history.

USDA guaranteed loans

USDA's guaranteed loan has no minimum down payment either. Under 7 CFR § 3555.103, the loan can't exceed the lesser of the appraised market value plus the upfront guarantee fee, or the purchase price plus eligible acquisition costs. That second part matters: under 7 CFR § 3555.101, those costs can include title insurance, recording fees, the appraisal and other reasonable closing costs. So a USDA loan can sometimes finance closing costs too, if the home appraises high enough to leave room.

The catch is eligibility. Adjusted household income at approval can't exceed USDA's moderate-income limit for the area, and the home has to be in an area USDA treats as eligible. And unlike VA, USDA charges a recurring fee: 0.35% a year for FY2027, on top of the 1% upfront fee. Our VA vs USDA loan comparison runs the 30-year math for buyers who qualify for both.

What $0 down saves on a $350,000 home

Here's the same $350,000 home under each program's minimum. Rates aren't shown because we don't quote them, and real rates differ by lender, program and borrower.

The VA fee is 2.15% of $350,000. The FHA figures use the 3.5% minimum investment from Handbook 4000.1 and the 55-basis-point annual premium HUD sets for a 30-year loan above 95% LTV with a base loan of $726,200 or less (larger loans pay 75). The USDA and FHA monthly figures are year-one approximations; both fees are charged on the balance, so they shrink slowly as you pay the loan down.

Served? See if your $0-down VA option is real

Answer a few questions and we'll match you with a VA-experienced loan officer who can check your entitlement, funding fee and cash to close for your price.

See my VA options

How to buy a house with no money down when you don't qualify for VA or USDA

Use a gift or down payment assistance on FHA

FHA's 3.5% doesn't have to come from your savings. Handbook 4000.1 accepts gifts from a family member, your employer or labor union, a close friend with a documented interest in you, a charitable organization, or a government agency with a homeownership assistance program for low- or moderate-income families or first-time buyers. A government agency, a HOPE grantee or a family member can also lend you the 3.5% as a second loan, and Handbook 4000.1 lets that secondary financing count toward your minimum investment (a family loan can't push the combined LTV above 100%). A second loan from a HUD-approved nonprofit can't be used for that part. Gifts need a signed gift letter stating no repayment is required.

State and local housing agencies run most down payment assistance. Some give grants, some give second loans that are forgiven after a set number of years, and some must be repaid when you sell or refinance. Read the repayment terms before you count the money as free.

Go conventional with 3% down

Fannie Mae's HomeReady allows up to 97% LTV for a one-unit principal residence underwritten through its DU system (95% if manually underwritten), per Selling Guide B5-6-02. That's 3% down. You'll pay private mortgage insurance, but unlike FHA's annual premium at minimum down, PMI on a conventional loan can be cancelled as you build equity. Our VA vs conventional comparison shows when PMI drops and what that does to the payment.

Cash you still need at closing

A $0 down payment covers the down payment and nothing else. Expect to bring money for some or all of these:

• Closing costs. VA lists the usual ones: the appraisal fee, title insurance, recording fees, state and local taxes, plus hazard insurance and real estate taxes. VA notes closing costs vary with the loan amount, the property's location and the lender. The CFPB's closing costs explainer says the buyer generally pays them unless the contract or state law puts some on the seller.
• An earnest money deposit, if your purchase contract calls for one.
• Reserves, if your lender or program wants savings left over after closing.

Our VA loan closing costs guide breaks down the VA version line by line.

Getting the seller to pay closing costs

Seller money can cover closing costs, but never the down payment. Fannie Mae's interested-party rules don't let those contributions make the down payment, and Handbook 4000.1 says they "may not be used for the Borrower's MRI" on FHA. VA, FHA and Fannie Mae each cap what the seller can give:

For a $0-down buyer, VA's rule is the friendliest of the three. VA says it doesn't limit seller credits for a loan's closing costs, and caps only concessions (things like paying your funding fee or paying off a debt) at 4%. Our guide to VA loan seller concessions shows how to ask for them in an offer.

Bottom line

You can buy a house with no money down through a VA loan or a USDA guaranteed loan. If you've served, start with VA: it has no monthly mortgage insurance, no VA loan limit with full entitlement, and no funding fee if you receive VA disability compensation. If you're not VA-eligible, USDA is the other mainstream $0-down loan, and FHA or HomeReady with a gift or assistance program can get your out-of-pocket costs close to zero. Either way, plan for closing costs. To see your VA numbers, take the 2-minute check.