Are there any no down payment loans for home buying any more?

Yes, although slightly limited. Without any down payment, you’ll most likely be looking at one of two loan programs both of which have some slight limitations to be aware of. Before we dive into the nuts and bolts of each program, know this:

It only takes 3.5% down to buy a home these days.  Additionally, this 3.5% down payment can come from a gift, mom, dad, aunt, uncle, cousin, friend, or relative. This is for an FHA Mortgage.

If you’re looking for a conventional mortgage, 5% of the purchase price, 5% down payment must be your own funds. Anything above and beyond the 5% can be a gift from the same sources. If you don’t have the 5% down, a full 20% down gift would be needed.

How to buy house with no down payment

Two active loan programs will help you accomplish this goal.

VA Mortgage– must be a veteran of the US military or spouse of a veteran of the US military. You will need no down payment of any kind, but the seller of the property will have to contribute at least 2 to 3% of the purchase price to pay the closing costs that you would otherwise incur. Truly no money down, 100% financing and there is no monthly mortgage insurance requirement.

USDA Mortgage-only available in certain geographic areas. Here is a list of those areas. Income limitation- cannot earn more than $93,400 per year in combined household income. This means if one spouse is not not on the loan and the other spouse is, if the combined income together as evidenced by tax returns exceeds $93,400 the loan is in eligible for the US Department of Agriculture rural loan.

If you are not a US military veteran and want to purchase in a non-US Department of Agriculture certified area, start saving for a down payment or approach possible family members and/or friends for a down payment to purchase a home.

*The down payment to buy a home can also come from the sale of a good such as an automobile as evidenced by bill of sale. It can also come from the sales of other personal items such as household items, jewelry to name a few. Always make sure to check with your loan officer before approaching that type of direction.


Posted in:


Here’s how to buy a house even if you think your income may not qualify

Here’s how to buy a house even if you think your income may not qualify

If you’re looking to get prequalified to buy a home, one of the main elements,…

Scott Sheldon's The Mortgage FIles Blog

FHA Mortgage Insurance Premiums reduced by 30 basis points-what this means for consumers

For folks looking to purchase or refinance a home with the FHA Loan, the Federal…

Can you get a mortgage with bad credit?

Can you get a mortgage with bad credit?

Many mortgage companies along with the internet would have you believe getting a mortgage with…

How to avoid getting a jumbo loan due to Coronavirus

Here are 2 mortgage process problems you will want to avoid

Securing mortgage loan financing is the cornerstone of financial prosperity in America. It’s one of…

View More from The Mortgage Files:

begin your mortgage journey with sonoma county mortgages

Let us make your mortgage experience easy. Trust our expertise to get you your best mortgage rate. Click below to start turning your home dreams into reality today!