October 2, 2025
by
Landy Liu
The dream of owning a home without a hefty upfront payment sounds too good to be true, but is it? If you're asking, "Can you buy a house with no money down?" the short answer is yes, but the reality is more nuanced. From government-backed loan programs to strategic financial planning, let's break down your real options.
Buying a house with "no money down" typically refers to mortgage loans that don't require a down payment. But that doesn't mean the home is free of upfront costs. You’ll still need to account for closing costs, insurance, and other fees. For qualified buyers, there are legitimate paths to homeownership with zero down, but they usually come with eligibility restrictions.
Foyer helps demystify these costs by giving you a clear savings roadmap and tools to plan even when your upfront cash is limited.
Veterans, active-duty service members, and eligible spouses may qualify for VA loans that require no down payment and no private mortgage insurance (PMI). These are among the most flexible and affordable mortgages available.
Targeted at rural and some suburban areas, USDA loans are backed by the U.S. Department of Agriculture. They offer zero down options to buyers who meet income limits and property location criteria.
These loans can open doors for many, but they’re not available to everyone. Foyer offers education and resources to help you assess your eligibility and plan your next steps.
FHA loans require just 3.5% down if your credit score is 580 or higher. Backed by the Federal Housing Administration, they’re more forgiving when it comes to credit history and debt-to-income ratios. If you’re new to credit or rebuilding, this can be a great entry point to owning a home.
Many lenders offer low down payment conventional loans—sometimes just 3% down—through programs from Fannie Mae or Freddie Mac. These are often a better fit for buyers with stronger credit who want to avoid some of the fees and insurance costs tied to FHA loans.
Across the country, there are state, city, and nonprofit programs offering support for first-time buyers. These may include:
In some cases, these programs help with closing costs, not just the down payment—making the upfront burden even lighter.
While none of these options offer true “no money down,” they significantly lower how much cash you need upfront. For many buyers, that means getting into a home sooner than expected—with the right support and financing in place.
If you're hoping to buy a home with little or no money down, your credit score still plays a big role. Zero-down programs like VA and USDA loans aim to make homeownership more accessible—but each comes with specific credit benchmarks.
VA loans are available to eligible veterans, active-duty service members, and some surviving spouses. Most lenders look for a credit score of at least 620, though some may be flexible depending on your full financial picture, since these loans are government-backed.
For homes in eligible rural and suburban areas, USDA loans usually require a credit score of 640 or higher to qualify for automated underwriting. If your score is lower, you might still qualify through manual underwriting, but you’ll need to show more detailed proof of income stability and payment history.
FHA loans aren’t zero-down, but they’re still popular for buyers with limited savings. With a credit score of 580 or above, you’ll typically qualify for a 3.5% down payment. Scores between 500–579 may still be eligible—with a 10% down payment.
Even beyond qualifying, your credit score affects the interest rate and loan terms you're offered. A higher score can mean lower monthly payments and more savings over the life of the loan.
If you're early in your homebuying journey, it's worth taking time to monitor and improve your credit—it can unlock better options and make the whole process smoother.
Set a credit goal and track progress inside the Foyer app.
Buying a home with no money down can feel like a shortcut to ownership, but it comes with important trade-offs. With a larger loan amount, your monthly payments will likely be higher, and you may also have to pay mortgage insurance, which adds to your costs. Plus, with no initial equity, you’re more vulnerable if home values drop, leaving you with fewer options to refinance or sell.
Foyer is built for aspiring homeowners, especially those starting with little savings or a longer timeline. Whether you're months or years away from buying, we help you stay on track with tools and support designed for first-time buyers.
With Foyer Match, you can earn rewards just by saving consistently, turning everyday progress into meaningful gains. Milestone bonuses celebrate key savings goals, helping you stay motivated along the way.
Our planning tools make it easy to visualize your homebuying journey, while clear, accessible educational content helps you understand everything from credit scores to loan options. Foyer is also FHSA-ready, so when tax-advantaged accounts become available, you’ll be set to take full advantage.
We’re here to make your path to homeownership simpler, smarter, and more rewarding—no matter where you're starting from.
Join Foyer today and start saving smarter.
Yes, VA and USDA loans still offer this route for qualified buyers. Requirements vary, but the programs are active and available.
To get approved for a no down payment mortgage, first check if you qualify for VA or USDA loan programs. Then, gather documents like pay stubs and tax returns, and consider getting pre-approved to understand your options. Tools like Foyer can help you prepare for the full cost of buying a home, even without a down payment.
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