If you think you need a big pile of cash to own a home, think again. A no money down mortgage lets you skip the usual down‑payment and still get a loan. It sounds too good to be true, but there are real programs that make it possible.
Most lenders want you to put down at least 5% of the price. A zero‑down loan removes that requirement. Instead of a large cash payment, the lender may add a small fee to the loan, or you might get help from a government or local agency. The key is that you walk into closing without putting any of your own money down.
Because you’re borrowing more, the monthly payment can be higher. Interest rates might also sit a bit above the standard rate. That’s why it’s important to run the numbers before you sign anything. Use an online mortgage calculator to see how a larger loan balance changes your payment.
These loans aren’t for everyone, but there are clear pathways:
Good credit, steady income, and a low debt‑to‑income ratio boost your chances. If your score is under 620, you’ll probably need to look at VA or USDA options, because conventional zero‑down products usually demand higher credit.
1. Check eligibility: Visit the VA and USDA websites, or call your local housing agency, to see if you qualify. 2. Get pre‑approved: A lender will run a credit check, verify income, and tell you how much you can borrow. 3. Gather paperwork: Pay stubs, tax returns, and proof of residency are standard. 4. Choose a property that fits the program: USDA loans need rural or semi‑rural homes; VA loans have no location limit but must be owner‑occupied. 5. Close the deal: Sign the loan documents, pay any closing costs that aren’t covered by the program, and move in.
Remember, even though you skip the down payment, you’ll still face closing costs—title fees, appraisal, and attorney fees. Some programs allow you to roll those into the loan, but that raises the balance further.
Pros: You can buy sooner, keep cash for emergencies, and avoid the stress of saving a large down payment.
Cons: Higher loan amount means more interest over time, possible PMI, and stricter qualification standards.
The bottom line is simple: if you qualify for a VA, USDA, or a strong local assistance program, a no money down mortgage can be a smart shortcut to home ownership. Run the numbers, talk to a trusted lender, and decide if the trade‑off of higher monthly costs is worth getting the keys today.
Curious about the credit score you need to buy a house with zero down? Here’s an in-depth, people-first guide for 2025 on qualifying for a no money down mortgage.