How to Buy a Home with Little or No Money Down

1. VA Loans (for Veterans and Active Duty)

• 0% down payment
  
• Backed by the U.S. Department of Veterans Affairs
  
• No private mortgage insurance (PMI)
  
• Must meet service requirements
  

2. USDA Loans (for Rural/ Suburban Areas)

• 0% down payment
  
• Backed by the U.S. Department of Agriculture
  
• Income limits apply
  
• Home must be in an eligible rural area
  

3. FHA Loans (Low Down Payment)

• As low as 3.5% down
  
• Backed by the Federal Housing Administration
  
• Ideal for first-time homebuyers or those with lower credit
  
• Requires mortgage insurance
  

4. Conventional Loans with 3% Down

• Some lenders offer conventional loans with just 3% down
  
• Programs like HomeReady and Home Possible
  
• Typically need good credit and stable income
  

5. Down Payment Assistance Programs

• State and local governments often offer:
  
  • Grants
    
  • Forgivable loans
    
  • Deferred payment loans
    
• Great for first-time buyers
  

6. Negotiate with the Seller

• Ask for seller concessions (they cover closing costs)
  
• Request credits for repairs or other incentives
  

7. Use Gift Funds

• Many loan programs allow family members to contribute to your down payment or closing costs