One major step in becoming a homeowner is the down payment. A down payment is a lump sum calculated as a percentage of a mortgage and is conventionally about 20 percent of the total borrowed amount. If you’re looking at a $500,000 mortgage, that’s $100,000 to have on hand, which can be hard to swing for a lot of people. So, what can you do? Show
Can I buy a house with no money down?For most, the answer is usually no. However, there are some cases where you can buy a home with no money down. Two ways to do it are through Veterans Affairs (VA) loans and USDA loans. These government-backed mortgages can be difficult to qualify for. VA loan qualificationsVA loans are veterans assisted loans backed by the U.S. Department of Veterans Affairs. They’re set aside for those who served or currently serve in the military and their partners. These loans can provide zero percent down payment options for those who qualify. USDA loan qualificationsUSDA loans come with competitive rates for primary residences located in designated rural and suburban areas. In addition to location, the borrower must meet specific financial criteria to be eligible. Although Chase doesn’t offer USDA loans, we can help guide you toward a mortgage that works best for your needs. How do no down payment mortgages work?A government-backed mortgage means the loan is insured by the federal government. So, if a borrower defaults on payments, the lender knows they may be compensated, at least partially, by the government. Low down payment options for first-time homebuyersIf you don’t qualify for a VA or USDA loan, there are potential low down payment options like FHA, Fannie Mae and Freddie Mac backed loans. These loans are common for first-time homebuyers because they may require only three percent of the mortgage as a down payment. These types of loans often come with additional requirements, including mortgage insurance, which can increase total mortgage costs. Homebuyer assistance programsIn addition to low down payment loans, assistance programs and grant options — depending on your personal, financial and geographic qualifications — may also be available. These programs can offer support in the form of down payment and closing costs. Keep in mind these programs vary by state. In summaryBuying a house with no money down is possible but comes with tight restrictions. You may find more availability with a low down payment mortgage and grant options. If you’re a first-time homebuyer, consider speaking with a home lending advisor to find a mortgage that best suits your needs. The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SHARE:
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Prev Next  Patti McConville/Getty Images 8 min read Published December 14, 2022 CheckmarkExpert verified Bankrate logoHow is this page expert verified? At Bankrate, we take the accuracy of our content seriously. “Expert verified” means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced. Their reviews hold us accountable for publishing high-quality and trustworthy content. About our Review BoardWritten by David McMillin Written by David McMillinArrow RightContributing writer David McMillin Edited by Jeff Ostrowski Edited by Jeff OstrowskiArrow RightSenior mortgage reporter Jeff Ostrowski covers mortgages and the housing market. Before joining Bankrate in 2020, he wrote about real estate and the economy for the Palm Beach Post and the South Florida Business Journal. Jeff Ostrowski Reviewed by Kenneth Chavis IV Reviewed by Kenneth Chavis IVArrow RightSenior wealth manager, LourdMurray Kenneth Chavis IV is a senior wealth manager who provides comprehensive financial planning, investment management and tax planning services to business owners, equity compensated executives, engineers, medical doctors and entertainers. |
First time home buyer zero down payment
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