Can You Buy a Home with No Money Down?

Buying a home with no money down might sound too good to be true but in some cases, it’s absolutely possible.

While most buyers plan to put down 3% to 20% of a home’s purchase price, there are specific loan programs and strategies that allow qualified buyers to purchase with little to no upfront cash. Whether you’re a first-time buyer or looking to invest in a second property, here’s what you should know.

No Money Down: What It Really Means

A “zero down” home loan means you’re not required to make a traditional down payment at closing. However, you’ll still need to cover other costs like closing fees, inspections, and insurance, unless those are rolled into the loan or covered through credits.

Who Qualifies for No Money Down Loans?

There are two common government-backed loans that allow for 0% down:

• USDA Loans: Available in eligible rural and suburban areas. Must meet income and location requirements.
• VA Loans: For active-duty military, veterans, and eligible spouses. Offers 0% down, no PMI, and competitive rates.

These programs aren’t available to everyone, but they can be a game-changer if you qualify. To be eligible, lenders will typically look for:

• A steady and verifiable income: You should have a reliable source of income (such as full-time employment, consistent freelance work, or a steady stream of rental or retirement income) that can be documented through pay stubs, tax returns, or bank statements.
• A strong credit score (usually 640 or higher for USDA loans): Your credit score reflects your history of repaying debt. The higher your score, the better your chances of qualifying for a no-down-payment loan and securing favorable terms.
• A low debt-to-income (DTI) ratio: This is the percentage of your monthly income that goes toward paying debts. Most lenders prefer a DTI under 41% to ensure you can handle mortgage payments alongside your other obligations.
• Consistent employment history: Ideally, you’ve been with the same employer or in the same industry for at least two years. This shows lenders that you have financial stability and are less likely to default.

These criteria help demonstrate to lenders that you're financially ready, even without a down payment.

Can You Buy a Second Home with No Money Down?

Buying a second home whether for vacation or investment typically requires a larger down payment (10–20%). That said, there are a few creative options that may help reduce your out-of-pocket costs:

• HELOC or Cash-Out Refinance on Primary Residence: Use the equity in your first home to cover the down payment on your second.
• Seller Credits: Negotiate seller-paid closing costs to reduce cash needed at closing. For example, if your closing costs total $8,000, you might ask the seller to cover $5,000 of that amount as part of your offer, reducing the upfront cash you need while keeping your purchase price intact.
• Lender Programs: Some lenders offer low- or no-down-payment programs for multi-property buyers, though these come with stricter terms.

Keep in mind: Even if you find a way to buy with no money down, you’ll still need to show financial readiness and meet lender qualifications.

Risks and Considerations

• Higher Monthly Payments: Without a down payment, your loan balance is higher.
• Private Mortgage Insurance (PMI): Required on many low- or no-down-payment loans, unless waived (like with VA loans).
• Limited Equity: You’ll build equity more slowly and could be more vulnerable if home values dip.

Buying with no money down isn’t for everyone, but it can work if you have stable income, strong credit, and a clear plan.

How TurboHome Can Help

At TurboHome, we work with a network of lenders who offer flexible financing—including low or no down payment options. We also help you evaluate your full cost picture, so you’re not caught off guard by closing fees, mortgage insurance, or taxes.

And because we charge a flat fee (instead of a percent-based commission), you can keep more of your budget focused on your home. 

Final Thought

Yes, you can buy a home with no money down but it takes the right loan, the right planning, and the right team. Whether you’re buying your first home or your next, TurboHome can help you navigate the process with transparency and strategy.

Ready to explore your options? Talk to a TurboHome agent today at TurboHome.com.