Who qualifies and how they work
For many hopeful buyers, the biggest roadblock to homeownership isn’t monthly affordability—it’s saving for a down payment. The belief that you must put 20% down keeps far too many people on the sidelines. The truth? Zero-down mortgage options DO exist, and thousands of buyers use them every year.
Whether you’re a first-time buyer or returning to the market, here’s how no-money-down programs work—and who qualifies.
1. VA Loans: The Best Zero-Down Option for Eligible Veterans
If you’re active-duty military, a Veteran, or a qualifying surviving spouse, the VA loan program offers:
- 0% down payment
- No monthly mortgage insurance
- Competitive interest rates
- Flexible credit requirements
These benefits make VA loans arguably the strongest financing option in the country. The only requirements are VA eligibility and meeting the lender’s guidelines.
2. USDA Loans: Zero Down for Rural and Suburban Areas
The USDA loan program provides another powerful no-down-payment option—this time based on location and income.
USDA benefits include:
- 0% down payment
- Low mortgage insurance costs
- Competitive interest rates
To qualify, the home must be located in a USDA-eligible area, and household income must fall within program limits. Many buyers are surprised to learn how many suburban areas actually qualify.
3. Down Payment Assistance (DPA): Help Even If You Don’t Qualify for VA or USDA
If VA or USDA aren’t available to you, down payment assistance programs can help bridge the gap. These come in different forms:
- Grants that never have to be repaid
- Forgivable loans
- Low-interest second mortgages
- State and local housing agency programs
DPA can significantly reduce the upfront cash needed—even bringing it down to near zero in some cases.
Pros of Zero-Down Options
- Buy sooner without waiting years to save
- Keep savings intact for emergencies or upgrades
- Lower upfront cost makes homeownership accessible
Cons to Consider
- Higher mortgage insurance and/or funding fees (depending on program)
- Credit Score Requirements
- Income Restrictions
- Property restrictions for USDA
- Eligibility restrictions for VA
- Higher loan balance may mean a higher monthly payment
Zero-down options are powerful—just make sure they align with your long-term goals.
How Affinity Home Lending Helps Zero-Down Buyers
We help you:
- Understand which programs you qualify for
- Calculate true monthly costs
- Compare zero-down vs. low-down alternatives
- Secure approvals quickly and confidently
Zero-down isn’t just possible—it might be the smartest path forward.