How to Get a Mortgage Without a Down Payment?

Can You Get a Mortgage Without a Down Payment?

Can You Get a Mortgage Without a Down Payment?

04-Jun-2025

How to Get a Mortgage Without a Down Payment?

Buying a house is a dream for many, but let’s face the truth – coming up with a down payment can be a huge roadblock, particularly for first-time buyers. As per the NAR (National Association of Realtors), approximately 38% of first-time homebuyers in the United States claim that saving for a down payment is a challenge of the overall process.

down payment is a challenge of the overall process.

And with house prices soaring, even just a modest 5% down payment can contribute to thousands of dollars. That’s why, it’s no surprise one of the most common queries people ask is – “Can I get a mortgage without any down payment?”

The answer is – yes, it’s possible!

However, there are certain things you must know prior to going down that way. In the following guide, we are breaking down the kinds of loans, which provide zero down payment, the advantages or disadvantages, who qualifies, and things to expect if you are considering this route.

What You Should Know About Zero-Down-Payment Mortgage

So, what does “no down payment” actually mean? Let’s find out –

A zero down payment mortgage denotes you need not make an upfront payment toward the buying price of the house. Generally, lenders ask for around 3% to 20% of the home price as a down payment. However, certain government-backed as well as lender-specific programs provide alternatives, which eliminate this upfront cost – in case you qualify.

How to Get a Mortgage Without a Down Payment?

Can You Get a Mortgage with Zero Down Payment?

Yes, you can – in case you meet the criteria for certain loan programs tailored for zero-down borrowers. All these programs are primarily provided through government-backed loans, which aim to make homeownership a lot more accessible, particularly for first-time homebuyers, veterans, or those buying in rural areas.

While not everyone will certainly qualify, understanding every option available can help you in planning your next steps confidently. Below are mentioned some of the commonest zero-down mortgage programs and things you should learn about each one.

VA Loans (Veterans Affairs Loans)

In case you’re a former or current member of the military, you might qualify for a VA loan. All these loans are backed by the U.S. Department of Veterans Affairs and need –

  • Zero down payment
  • No PMI (private mortgage insurance)
  • Competitive interest rates

USDA Loans (U.S. Department of Agriculture Loans)

Tailored for rural as well as certain suburban areas, USDA loans also come up with the followings –

  • No down payment
  • Low interest rates
  • Minimized mortgage insurance fees

To qualify, your overall income should fall within a certain range, and the house should be in an eligible area. Check your eligibility.

First-Time Homebuyer Programs

Some private and local lenders provide a number of zero-down loan options for those, looking to buy their home for the first time. These often need –

  • Good credit history
  • A steady flow of income
  • Successful completion of certified homebuyer education courses

Can You Get a Mortgage Without a Down Payment?

This alternative phrasing of the question is frequently searched over the Internet, and it reflects the same concern. In case you are wondering, “Can I get a mortgage without a down payment?” the response still comes down to certain requirements or criteria for eligibility.

Feeling excited already? Hold on! You first need to understand what ‘zero down’ exactly refers to – as while the down payment may be waived, other upfront prices still apply. Have a look –

Understanding the Catch

While there are some programs that don’t really require any down payment, you still must cover the followings –

  • Closing costs (often 2%–5% of the overall loan amount)
  • Prepaid expenses such as taxes and insurance
  • Guarantee or PMI fees (except in the case of VA loans)

So, while you are skipping the down payment part, you are not really escaping all upfront costs.

Advantages and Disadvantages of Down Payment Mortgages

Below are mentioned some of the core advantages and disadvantages of down payment mortgages –

Advantages

  • Faster way to homeownership: You need not wait years to save.
  • More liquidity: You can easily use your savings for renovations, emergencies, or investments.
  • Access to financial assistance programs: There are many states out there that provide grants and assistance for closing costs.

Disadvantages

  • Higher monthly payments: Simply because you are borrowing more.
  • Greater interest over time: With a higher principal, you will pay more during the course of your mortgage.
  • Risk of negative equity: In case property values take a dip, you could owe more than your house is worth.
  • PMI costs: Except for VA loans, you’ll probably be needed to pay private mortgage insurance (PMI).

Who Qualifies for a Mortgage with Zero Money Down?

Zero-down-payment mortgages aren’t suitable for everyone. These loans are tailored for certain groups of borrowers who match certain criteria. Gaining an understanding of who qualifies can help you decide whether this option is realistically within reach.

  • Active-duty personnel or military veterans (VA loans)
  • Suburban and rural buyers with modest incomes (USDA loans)
  • First-time homebuyers with premium credit as well as stable income
  • Borrowers with alternate assets or co-signers to amplify their applications

type of loans

If you fall into any of these abovementioned categories, you might gain eligibility for one of the programs discussed above.

How Can You Increase Your Chances of Approval?

It’s not at all challenging to increase your chances of approval. Just follow these below-mentioned tips, and you are good to seal the deal –

  • Enhance your credit score: Aim for 640+ for USDA as well as 620+ for VA loans.
  • Decrease your debt-to-income ratio: The less debt you carry, the more potential your chances.
  • Get pre-approved: This provides you with a clear picture of your potential and overall eligibility.
  • Work with seasoned mortgage advisors: They can help you match you with the right program.

Should You Really Get a Mortgage Without any Down Payment?

Getting a mortgage without any down payment could be an amazing opportunity – especially if you’re financially eligible and prepared. These loans reduce the barrier or challenges to homeownership, but they’re not devoid of risks or drawbacks.

So, make sure that you thoroughly weigh the advantages and disadvantages, conduct deep research, and consult a reliable mortgage advisor before taking the plunge.

Need professional assistance for getting started? Or, confused on who to consult for genuine help or unbiased advice? Let Club 720 be the saviour! As a leading non-profit fintech platform. Club 720 is aimed at making financial empowerment and homeownership accessible to everyone.

Through personalized support, strategic partnerships, and educational resources, Club 720 can simplify the overall journey to homeownership and mitigate the wealth gap in communities across the U.S. You can consult a certified and experienced mortgage expert of Club 720 to get the right guidance on zero a down payment mortgage.

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Club720 empowers homebuyers to access the resources they need to overcome financial barriers and secure their dream homes. Whether you're a first-time buyer or looking for expert guidance, Club720 is your trusted partner on the journey to homeownership.

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