Homebuyers / Guide
No Down Payment Home Loans: What Actually Exists in 2026
Quick answer
Two true no-down-payment mortgages exist in 2026: VA loans for eligible service members and veterans, and USDA loans for buyers in eligible rural and suburban areas. Everyone else needs some money down — but down payment assistance can cover most or all of it, and low-down structures start around 2–3.5%.
I'm a licensed Mortgage Loan Originator. Most "no money down" advertising you'll see is either a VA or USDA loan you may not qualify for, or a down payment assistance program the ad isn't explaining. Here's the honest version, including what we do and don't offer.
The two real programs
Can you actually get a home loan with no down payment?
Yes — but only through two federal programs, and both have eligibility gates that exclude most buyers.
VA loans require no down payment and no mortgage insurance. You need eligible military service: generally 90 consecutive days of active duty during wartime, 181 days during peacetime, six years in the National Guard or Reserves, or status as a qualifying surviving spouse. If you're eligible, this is almost always the best mortgage available in America. Nothing else competes.
USDA loans also require no down payment. You need the property to sit in a USDA-eligible area and your household income to fall under the local limit — typically 115% of area median income. "Rural" is misleading here: a great many suburban areas qualify. Check the property address against the USDA eligibility map before assuming it doesn't — our eligibility check does this for you.
Everything else requires a down payment. FHA is 3.5% minimum. Conventional starts at 3% for qualified first-time buyers. Anyone advertising a conventional "zero down" mortgage is describing a down payment assistance program layered on top of a normal loan — which is legitimate, but it is not the same thing, and you should know which one you're being sold.
Qualifying
What credit score do you need for a no down payment home loan?
There's no single answer, because the two zero-down programs set their own floors and lenders add their own on top.
VA loans have no VA-mandated minimum credit score. Most lenders require 580–620 in practice.
USDA loans typically want 640 for streamlined automated underwriting. Below that, manual underwriting is possible but slower and more document-heavy.
FHA with assistance generally needs 580 for the 3.5% down tier, but most down payment assistance programs stack their own requirement on top — NC Home Advantage requires 640, for example.
Ownify's fractional program requires 660.
One thing worth knowing: the assistance program's credit floor, not the mortgage's, is usually the binding constraint. People discover this late.
The numbers
How much of a down payment do you need for a $300,000 house?
| Path | Down payment on $300,000 |
|---|---|
| VA loan (eligible service) | $0 |
| USDA loan (eligible area + income) | $0 |
| Conventional 3% (first-time buyer) | $9,000 |
| FHA 3.5% | $10,500 |
| Ownify fractional, 2% | $6,000 |
| Conventional 20% (no mortgage insurance) | $60,000 |
Those figures are the down payment only. Closing costs typically add 2–5% of the purchase price, which is the number that surprises people. On $300,000 that's another $6,000 to $15,000 — and it's why down payment assistance programs that also cover closing costs matter so much. Our detailed calculators run the full cash-to-close picture.
The real strategy
What if you don't qualify for VA or USDA?
This is most buyers, and it's where the real strategy lives. Down payment assistance can bring your out-of-pocket close to zero without a zero-down mortgage.
Two examples from markets we serve:
North Carolina. The NC 1st Home Advantage Down Payment offers $15,000 as a 0% interest, deferred second mortgage — nothing forgiven in years 1 through 10, then 20% per year across years 11 to 15, fully forgiven at year 15. Minimum middle credit score is 640. On a $429,000 purchase, FHA's 3.5% down is $15,015 — meaning that program covers essentially the entire down payment. That is functionally zero down, through a completely ordinary FHA loan.
Charlotte specifically. House Charlotte, administered by DreamKey Partners, offers up to $80,000 in 0% interest deferred assistance for households at or below 110% of area median income. The catch is a $365,000 purchase price cap against a Charlotte median of $441,000 — so it works below the median, not at it. Full detail on our Charlotte down payment assistance page.
The pattern holds nationally. Most states run a housing finance agency with something comparable, and many cities layer their own program on top. The money is frequently unclaimed because buyers never learn it exists.
Trade-offs
What's the catch with down payment assistance?
Every program trades something for the money, and you should know what before you sign.
Repayment or forgiveness terms. Some assistance is a grant. Most is a deferred second mortgage forgiven over a schedule — NC's runs 15 years. Sell or refinance early and you may owe some back.
Occupancy requirements. These are primary-residence programs. NCHFA requires you to move in within 60 days of closing.
Price and income caps. House Charlotte stops at $365,000. NC's statewide cap runs roughly $480,000–$495,000. Income limits count every adult in the household, not just the borrowers.
Education requirements. House Charlotte requires 8 hours of homebuyer education — 4 online, 4 one-on-one with a HUD-approved counselor. Budget the time.
Slower closings. An assistance-stacked purchase can take 6–8 weeks or more versus 4–6 for a straightforward loan. In a competitive market, sellers notice.
A third structure
Where fractional ownership fits
If you're not VA or USDA eligible and assistance doesn't close your gap — because you're above an income cap, or shopping above a price cap, or you need to move faster than a 6-week close — there's a third structure.
With Ownify you buy a share of the home with as little as 2% down, with investor capital covering the rest. You're on title as a partial owner from move-in and buy additional shares over roughly five years, then transition to a traditional mortgage. Minimum credit score 660. We operate in Colorado and North Carolina. Here's how it works step by step.
To be direct: this is not a zero-down loan, and we won't describe it as one. It's a 2% co-investment in a shared equity partnership, not a loan. If you qualify for VA, take the VA loan — it beats us and we'll tell you so. If USDA works for your address and income, that's usually better too. Fractional ownership is best for buyers who are not VA eligible or make too much money to qualify for USDA or down payment assistance programs.
Side by side
Comparing every low and no down payment path
| Feature | VA | USDA | FHA + assistance | Ownify fractional |
|---|---|---|---|---|
| Down payment | $0 | $0 | 3.5%, often covered | 2% |
| Who qualifies | Eligible military service | Eligible area + income limit | Most buyers, 640+ with assistance | 660+ credit |
| Mortgage insurance | None | Yes, annual fee | Yes | No |
| Own on day one | Yes | Yes | Yes | Yes, partial |
| Typical close | 4–6 weeks | 6–8 weeks | 10–14 weeks | 2–3 weeks |
| Price limits | County loan limits | Area limits | Program caps ~$480k–$495k in NC | $250k–$750k |
FAQ
Frequently asked questions
Can I get a home loan with 0% down payment?
Only through a VA loan, if you have qualifying military service, or a USDA loan, if the property is in an eligible area and your income falls under the local limit. No conventional or FHA loan offers true zero down — but down payment assistance can cover the required down payment, producing the same out-of-pocket result.
What credit score do I need for a no down payment home loan?
VA sets no minimum, though lenders typically want 580–620. USDA generally wants 640 for automated underwriting. Assistance programs set their own floors — NC Home Advantage requires 640, and Ownify requires 660.
Are no down payment home loans a bad idea?
Not inherently. VA loans in particular are excellent products. The genuine risk is starting with no equity: if values fall you can owe more than the home is worth, which matters if you need to sell within a few years. Zero down works best when you're confident you'll stay put.
Can first-time buyers get no down payment home loans?
Yes — VA and USDA have no first-time-buyer restriction at all. And most first-time buyer assistance programs exist precisely to eliminate the down payment barrier, which is often a better fit than chasing a zero-down mortgage you may not qualify for.
What's the lowest down payment if I don't qualify for VA or USDA?
Conventional starts at 3% for qualified first-time buyers, FHA at 3.5%, and Ownify's fractional structure at 2%. Layer down payment assistance on any of them and your actual cash to close can approach zero.
See what you can actually buy with little or nothing down
Loan program terms, assistance program funding and eligibility change frequently — verify current terms with the administering agency before relying on them.