What is a $0 down payment loan?
A $0 down payment loan is a mortgage that doesn’t require a down payment upfront. This option is ideal for buyers who may not have the savings needed for a traditional down payment. However, like any mortgage option, there are pros and cons.
Pros:
- Keep your savings: – With no down payment required, you can avoid depleting your savings or other assets.
- Quick homeownership –You can purchase a home sooner without waiting to save up for a down payment.
Cons:
- Higher interest rates: –No down payment loans often come with higher interest rates, which can result in larger monthly payments.
Popular $0 down payment loan options
Several popular loan options can help you buy a home with no down payment:
- USDA Loan: The USDA Rural Development Guaranteed Housing Loan Program offers 100% financing for homes in eligible rural areas. This loan allows you to purchase a home without a down payment.
- VA Loan: Partially guaranteed by the U.S. Department of Veterans Affairs (VA), this loan is available to veterans, active-duty military members, and qualified spouses. It requires no down payment1 and doesn’t have mortgage insurance, though there is an up-front funding fee.
In addition to government-backed loans, PrimeLending also offers non-government-backed down payment assistance programs.2 Notably, the NeighborhoodEdge® program helps qualified borrowers get up to $2,000 in either closing cost or down payment assistance3 and can be used with conventional loans, making it a great option for buyers with limited upfront funds. This program can also be combined with low down payment loans, offering a flexible and accessible path to homeownership.
To explore which loan options fit your needs, connect with me today. I can walk you through our $0 and low down payment mortgage programs that can work for you.
WHAT COULD YOU AFFORD WITH $0 DOWN? Use my free mortgage calculator to estimate your monthly payment and take the guesswork out of homebuying. Calculate Your Payment.
1Down payment waiver is based on VA eligibility.
2Certain restrictions apply, subject to down payment assistance program guidelines. Not available in all areas. Please contact your PrimeLending loan officer for more details.
3Homebuyers who qualify for PrimeLending's NeighborhoodEdge program may receive up to $2,000 in either closing costs assistance or down payment assistance if property is located within PrimeLending eligible market and homebuyer's income is equal to or less than 100% of the area median income based on HUD guidelines. Additional restrictions may apply. Savings only applies to direct originations of first lien Freddie Mac HomePossible, Fannie Mae HomeReady, and FHA 203K Limited and Standard loan programs for purchase transactions only, and is not available on loans obtained through mortgage brokers. Only one offer per loan transaction is available, and savings may not be combined with other closing cost assistance programs. Savings will reflect on Closing Disclosure at closing. Funds are limited and are available on a first-come, first served basis.