Zero Down/No Down Payment Loan Programs
Zero down home loans or no-down-payment home loan programs, enable eligible buyers to purchase a home without a traditional down payment. They offer benefits like no down payment, no private mortgage insurance (PMI), and can have lower interest rates. The two most popular zero down payment loans are VA (Veterans Loan) or USDA (Rural Loan).
VA Loans: These loans are available to eligible active-duty service members, veterans, National Guard or Reserve members, and surviving spouses. The VA loan benefits include no down payment, no private mortgage insurance (PMI), and can have lower interest rates. To qualify, VA home buyers need a Certificate of Eligibility (COE) from the VA, must meet lender-specific credit score requirements, and meet the debt-to-income ratio (DTI) requirements.
USDA Loans: These are designed for low-to-moderate-income borrowers who are purchasing a home in a rural area. USDA loan benefits include no down payment, no private mortgage insurance (PMI), and can have lower interest rates. To qualify, the home must be located in a USDA-approved area, meet income limits, debt to income ratio limits, and credit score requirements.
USDA Loans: These are designed for low-to-moderate-income borrowers who are purchasing a home in a rural area. USDA loan benefits include no down payment, no private mortgage insurance (PMI), and can have lower interest rates. To qualify, the home must be located in a USDA-approved area, meet income limits, debt to income ratio limits, and credit score requirements.
Alternatives: For those not eligible for VA or USDA loans, other low-down-payment options exist, such as the first time home buyer Conventional 97 loans (3% down payment) or FHA loans (minimum 3.5% down payment), and various first-time home buyer grants and down payment assistance programs that will help cover your down payment.