How to Buy a House With No Money Down | $0 Mortgage

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If you’re a first-time homebuyer, you may want to consider a $0 mortgage. Other than standard closing costs, you won’t need to pay any additional fees at closing. To find out if a no-money-down option is right for you, read on to learn what our real estate experts have to say.

What Is a $0 Mortgage?

This is a great option for repeat homebuyers who are looking to buy real estate with no money down. It’s also ideal for first-time homebuyers because there isn’t a burden to come up with a sizable down payment. If you can afford the monthly payments, a $0 mortgage can serve you well.

Should You Choose a $0 Mortgage?

Even in the face of the pandemic, it’s still a relatively good time to buy a home. This is because home sales have been consistently rising while supply has been dropping. What’s more, prices have gone up among homes in neighborhoods and cities. If you wait too long, you may find that you’ll pay more than necessary. With mortgage rates still reasonably low, now may be the best time to buy. If you research short- and long-term loans , you will find that rates are really cheap right now. As such, you may not want to wait much longer to take advantage of the current market. But what is the best way to go about securing a home with no down payment? You have plenty of options for financing your new home with no money down. Let’s take a closer look at a couple of the most popular so you have a better understanding of what they entail.


The United States Department of Agriculture may be the best option for buying a house with no money down. Thanks to the USDA’s 100% financing mortgage option , you can take advantage of this to secure a home in either a rural or suburban neighborhood. Known as the Rural Housing Loan, the USDA established this program to help families with low-to-moderate income buy a home for the first time. What’s more, there are plenty of families that earn a good income and have taken advantage of the Rural Housing Loan. Basically, you aren’t strictly limited to specific housing or neighborhoods, as there is clearly flexibility in using this program. When you elect to take a USDA loan, there are many benefits that come along with it. For example, you can choose to have your loan include eligible home improvements and repairs. You can also look forward to a guaranteed fee at closing. This ensures that there are no surprises or hidden fees when it comes time to close on your new home. In addition, the mortgage rates provided by a USDA loan are often really low. In fact, it isn’t uncommon for their rates to beat other similar programs. As such, this may be your best option for buying a home at the lowest cost possible. If you’re a first-time homebuyer, it isn’t likely that you have a huge sum of money set aside. That’s what makes USDA’s program so compelling. This is especially true when you look at the current market. With job security waning and fewer hours being worked, it’s important to establish a home loan that you can manage. By taking advantage of a USDA loan, you can comfortably keep up on other responsibilities and provide for your family without fear of getting swallowed up in debt. It’s important to crunch numbers and review your budget to ensure that you can afford the monthly payments associated with a USDA loan. But if you determine that it’s a feasible option for buying your first home, you may want to jump on the opportunity sooner rather than later. It is good practice to speak with a mortgage lender to help you better understand your options and finances. They can walk you through each of your options and help you make the best decision based on your needs.

VA Loan

A VA loan is another potential home buying option that you may want to consider. If you are active duty, retired, or a veteran of the United States military or are a surviving spouse to one who served, a VA loan is a great no-money-down option that provides 100% financing. This program is guaranteed by the United States Department of Veteran Affairs. Similar to an FHA ( Federal Housing Administration ) home loan, the VA guarantees to repay the cost of the home to your lenders. As such, this ensures that you will have VA mortgage guidelines. To qualify for a VA loan, the rules and regulations are pretty straightforward. As long as you are active, retired, or a veteran of the United States military, you are eligible for a VA home loan. Also eligible are members of the National Guard or Reserves who have spent a minimum of 6 years in either program. And lastly, surviving spouses of service members who died in the line of duty are eligible for a VA home loan. Signing up for a VA loan also comes with its share of benefits. One of which is the ability to occupy your new home intermittently. Furthermore, you aren’t barred from approval if you have previously filed for bankruptcy or your credit is less than stellar. What’s more, mortgage insurance isn’t required on your home when you buy it using a VA home loan. In addition to these benefits, you may also be eligible to secure a loan for as much as $765,000. This is typically an option when buying a home that is located in a high-cost area. You may need to utilize this type of loan if you’re planning on buying a home in places like California or Hawaii, where both states are home to United States military bases.

How to Buy a Home With No Money Down

If you have decided that you want to buy a home with no money down, you’re going to first need to apply for your $0 mortgage. If you aren’t sure which option to go with for securing a loan with no money down, you aren’t alone. That’s where a mortgage lender comes into play. These specialists can help you make the best decision for you and your family. They have the knowledge and training to provide you with direction and guidance as to which option is the best fit for your needs. There are plenty of other options available that may be more suitable for your financial situation. That’s why you should contact a mortgage lender to help walk you through the process.

Assistance Programs

The FHA offers assistance to home buyers that can help you in the event that you have to pay a down payment. Each state varies in its guidelines for qualification, so you’ll want to ask your mortgage lender to get a better idea of what your state’s regulations are. At present, 87% of single-family homes in the United States are eligible for assistance. As such, you are likely to find that there is a wealth of help available if you just ask. What’s more, an average of nearly $12,000 is given to home buyers for the down payment.

FHA Loan Requirements

To qualify for an FHA loan, you will need to meet certain criteria. First, you must have a credit score of at least 500. You will also need to be able to provide proof of employment in the form of W-2s and paystubs. Federal tax returns are also acceptable forms of employment verification. Secondly, you mustn’t have filed for bankruptcy within the last 12 months. This also includes foreclosures and short sales. And lastly, to qualify for an FHA loan, you must not be behind on federal tax payments, student loans, or have any other type of outstanding federal debt.

Benefits to Putting Additional Money Down

Some home buyers prefer to put more money down on the purchase of their new home because of the benefits that come with doing so. By putting more money down, you can look forward to your mortgage payments being less. Furthermore, if your mortgage requires that you purchase mortgage insurance, putting more money down will ensure that your mortgage insurance cancels in fewer years.


As you can see, you have plenty to consider when buying a home. If you believe that you would benefit from a $0 mortgage, you should get in touch with a trusted mortgage lender to guide you through the process of buying a home with no money down. It’s important to review your budget so that you know exactly what kind of payments you can afford to make each month. A mortgage calculator will help you determine the maximum price that you can afford to spend on a home. Sources

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