How to Buy a Home with Little or No Money Down

Buying a home may feel out of reach if you don’t have thousands saved for a down payment. The good news is, several programs and strategies make it possible to purchase a home with little or even no money down. Here’s how you can make homeownership a reality.

1. Explore Government-Backed Loan Programs

Some mortgage programs are specifically designed to reduce or eliminate the need for a down payment:

• USDA Loans: If you’re buying in eligible rural or suburban areas, a USDA loan offers 0% down payment with low interest rates.

• VA Loans: Veterans, active-duty service members, and eligible spouses can benefit from VA loans, which also require no down payment and no private mortgage insurance (PMI).

2. Look Into Down Payment Assistance (DPA)

Many states and local governments offer grants or low-interest loans to help first-time buyers cover down payments and closing costs. These programs can significantly reduce your upfront expenses.

3. Consider FHA Loans with Assistance

FHA loans require as little as 3.5% down, but when paired with DPA programs, you can often reduce your cash requirement close to zero.

4. Explore Creative Financing Options

In some cases, sellers may offer concessions or you might consider “lease-to-own” agreements, which allow you to rent while applying part of your payments toward the purchase price.

Final Thoughts

Buying a home with little or no money down is possible if you know where to look. From government loans to local assistance programs, there are multiple paths to homeownership—even without a large savings account. Partnering with a knowledgeable real estate professional can help you find the best option for your situation.