Zero Down Payment  ·  Licensed in NJ  ·  CT  ·  FL  ·  NMLS #1630225

Buy a Home with 0% Down Payment — Four Routes, Four Sets of Rules

You can buy a home with 0% down payment, and there are four ways to do it. VA and USDA require no down payment. FHA down payment assistance covers the 3.5% for you through a second lien. The 5% version goes further and reaches part of the closing costs. What separates them is not the down payment, since all four get you to zero, but what each one asks in exchange.

Last updated September 2026 · reviewed by a licensed mortgage broker

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★★★★★ 5.0 on GoogleNMLS #1630225 · verify on NMLS Consumer AccessLicensed in NJ · CT · FL (FL MLB 1987)Family owned since 2017 · Ridgefield, NJ
580Min Credit Score
FHA DPA, Automated
550USDA Lower Tier
Manual Underwriting
101.5%Max CLTV
On The 5% DPA
36On-Time Payments
To Ask For Forgiveness


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You can buy a home with 0% down through VA and USDA loans, or with down payment assistance that covers your down payment. Below is how to buy a home with no money down.

Can You Buy a Home with 0% Down Payment in 2026?

Buying a home with 0% down payment is not a gimmick. There are four clear paths: a VA loan for veterans and active-duty service members, a USDA loan for buyers in eligible rural and suburban areas, an FHA loan paired with a 3.5% down payment assistance second lien, or the 5% version, which reaches part of the closing costs too. The CFPB publishes a plain-language guide to mortgage loan types and key terms that is a helpful starting point for buyers comparing programs.

Each path has its own rules. VA loans require military service. USDA loans require the property to be in an eligible zone with household income within local limits. FHA DPA programs require a 580 minimum FICO. As a mortgage broker licensed in NJ, CT, and FL, we work with wholesale lenders and match you to the right program in a single conversation.

Already have a property in mind? Tell us the address and your profile and we will check USDA eligibility, VA entitlement, and available DPA programs in your state at no cost. Start your free application.


Zero-Down Programs

The Four Ways to Buy a Home with 0% Down Payment

Each program eliminates the down payment differently. Here is a side-by-side snapshot.

Program Down Payment Who Qualifies Property Requirement
VA Loan 0% Veterans, active-duty military, eligible surviving spouses Any eligible property; no geographic restriction
USDA Loan 0% Buyers within local AMI household income limits Property must be in a USDA-designated eligible area
FHA + DPA (3.5%) 0% out of pocket 580+ FICO; no income cap Owner-occupied primary residence; standard or high-balance amounts
FHA + DPA (5%) 0% out of pocket 580+ FICO; no income cap Owner-occupied primary; covers down payment and closing costs

Program Breakdown

Understanding Each Zero-Down Option

Knowing which program fits your situation changes how you approach the purchase. Here is what each one actually requires.

VA Home Loan
Who Is Eligible
Veterans, active-duty service members, National Guard and Reserve members with qualifying service, and eligible surviving spouses. The VA’s official home loan page outlines service requirements and how to obtain your Certificate of Eligibility before you go under contract.
Why It’s the Strongest Program
No down payment, no private mortgage insurance, competitive rates, and no loan limit for borrowers with full entitlement. A VA funding fee applies but can be rolled into the loan. This is the most valuable zero-down benefit available in the mortgage market.
USDA Rural Development Loan
Property & Location Rules
The property must be in a USDA-eligible area. Many suburban towns in NJ, CT, and FL qualify. The USDA single-family housing programs page includes an address eligibility map you can check instantly.
Income Limits
USDA income limits are based on household size and the area median income for the county. Most moderate-income families qualify. This is not exclusively a low-income program. Many two-income households in suburban areas come in under the threshold and qualify for zero-down USDA financing.
FHA + Down Payment Assistance (DPA)
3.5% DPA — Forgivable or Repayable
A DPA second lien covers the FHA 3.5% down payment, so the buyer puts nothing down. The forgivable option has no monthly payment and can be forgiven at your request after 36 consecutive on-time payments on the first mortgage. The repayable option has a monthly payment instead, and is not forgiven. No income cap on either option, and at least one borrower completes HUD-approved housing counseling before closing.
5% DPA — Cover More Than the Down Payment
We offer a 5% FHA DPA second lien for buyers who need assistance beyond the down payment. The second lien covers up to 5% of the purchase price toward the down payment and closing costs. This option is repayable over 10 years with an interest rate at the first lien note rate plus 2%. 580 minimum FICO. At least one borrower must complete HUD-approved housing counseling.

Buy a Home with 0% Down Payment2026 Zero-Down Program Comparison — Mortgage-World.com — NMLS #1630225VA LOAN0%Down PaymentNo PMI requiredVeterans eligibleNo loan limit w/ full entitlementUSDA LOAN0%Down PaymentRural/suburban areasIncome limits applyPrimary residence onlyFHA + 3.5% DPACoveredThe 3.5% down paymentForgivable or repayable580+ FICO / No income cap1st-time & repeat buyersFHA + 5% DPACoveredDown Pmt + Some CostsRepayable over 10 yrsAUS approval requiredPayment counts in DTILicensed Mortgage Broker · Call 888.958.5382 · FL License MLB 1987 · NMLS #1630225


State Programs

What About State Housing Agency Programs?

New Jersey, Connecticut, and Florida each run their own down payment assistance through a state housing finance agency. Those are separate programs with their own eligibility rules, and they are not ones we offer. The four routes above are the ones we place.

First-time home buyer? Our First-Time Home Buyer page covers the other low-down-payment routes for a first purchase.

Not sure which of the four you actually qualify for?
Where the house is and whether you have served will usually settle it between them

Before You Start

What Happens After You Apply

  1. You send the application

    A few minutes online. No documents at this stage.

  2. A licensed loan officer calls you

    Someone on our team covering your state.

  3. We ask for documents and pull credit

    Only once you have decided to move forward.

  4. You get an approval to shop with

    Typically back within the hour.

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Frequently Asked Questions

Frequently Asked Questions About Buying a Home with 0% Down Payment

Can I really buy a home with 0% down payment in 2026?
Yes. VA loans and USDA loans require no down payment for eligible buyers. FHA down payment assistance programs cover the 3.5% FHA requirement through a second lien, leaving the buyer with zero out of pocket toward the down payment.
Who qualifies for a VA loan with no down payment?
Veterans, active-duty service members, National Guard and Reserve members with qualifying service, and eligible surviving spouses qualify for VA home loans. A Certificate of Eligibility from the VA confirms your entitlement. VA loans require no down payment, no PMI, and carry no loan limit for borrowers using full entitlement.
What are the income limits for a USDA loan?
USDA income limits are based on household size and the area median income for the county where the property sits. Limits vary by location and are updated annually. Many moderate-income households qualify. The property must also be located within a USDA-designated eligible area, which includes many suburban towns throughout New Jersey, Connecticut, and Florida.
How does FHA down payment assistance work?
FHA DPA pairs a standard FHA first mortgage with a second lien covering the 3.5% down payment. The second lien can be forgivable after 36 on-time payments, or repayable with a monthly payment instead. No income cap applies. Minimum 580 FICO is required for automated approval. On either version, at least one borrower must also complete HUD-approved housing counseling before closing.
Does buying with 0% down mean no closing costs?
No. Zero down payment eliminates the down payment requirement, but closing costs still apply. These include the appraisal, title insurance, recording fees, and prepaid escrow items. Some DPA programs allow the assistance to cover both the down payment and closing costs. Sellers can also contribute toward buyer closing costs through seller concessions negotiated in the purchase agreement.
Does Mortgage-World.com offer zero-down programs in NJ, CT, and FL?
Yes. Mortgage-World.com is a mortgage broker licensed in New Jersey, Connecticut, and Florida (NMLS #1630225, FL License MLB 1987). We work with wholesale lenders and offer VA, USDA, and FHA DPA programs across all three states. We identify every program you qualify for based on service history, location, credit, and income at no extra charge.
Can the assistance cover more than the down payment?
On the 5% version, yes. The second lien runs to 5% of the purchase price and can go toward closing costs as well as the down payment, which is why the combined loan-to-value on that tier reaches 101.5% – you can end up financing slightly more than the house cost. The 3.5% version stops at 100% combined, because it covers the down payment and nothing else. The trade is that the 5% second is repayable over ten years at your first mortgage rate plus 2%, and that payment counts in your debt-to-income ratio from day one.
My credit is in the 500s. Is any of this open to me?
Possibly, on the USDA route. USDA sets no minimum score of its own. Around 640 gets you an automated approval, and below that a file can still be underwritten by hand down to 550. The catch is that USDA also needs the property to sit in an eligible area and your household income to fall under the local limit, so a low score does not on its own open the door. FHA assistance starts at 580 with an automated approval and has no income cap at all.
What does zero down actually cost me later?
A bigger loan, and on some routes a second payment. Nothing down means you are financing the whole price, so the monthly payment and the total interest are both higher than they would be with money in. On the FHA routes you also carry mortgage insurance. And if you take the 5% assistance rather than the forgivable 3.5%, you are carrying a second lien payment alongside the first from the month you close. None of that makes zero down a bad idea – it is often the difference between buying now and buying years from now – but it is the part that gets left out.
If I qualify for more than one, which should I take?
Usually VA, if you are eligible – no down payment, no mortgage insurance, and no loan limit with full entitlement is a combination nothing else matches. After that it depends on the house rather than on you. USDA only works in an eligible area and under an income cap. FHA assistance works anywhere and has no income cap, which is why it is where most files without military service end up. Tell me the address and your service history and the list usually narrows to one before we have finished talking.

Related down payment pages: Down payment assistance overview · 3% down payment · DreamBuilder program.

Related Resources

Which Zero-Down Route Are You Actually Eligible For?

Zero-down programsAll four routes to a zero down payment, and what each one asks instead.You are hereDown payment assistanceThe assistance programs on their own, in more detailComparePutting 3% downWhen a small down payment beats no down paymentCompareFirst-time buyer programsEverything else a first purchase needsCompare
Related Purchase ProgramsHome Possible (3% down)FHA loansDreamBuilder program
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Zero down is four different loans

The down payment is the one thing these four have in common. Everything else – who is eligible, where the house can be, whether there is an income cap, and what the assistance costs you later – is different in each. Working out which one you fit takes a conversation, not a calculator.

What You Need
✓VA and USDA require no down payment
✓FHA assistance covers the 3.5% through a second lien, forgivable or repayable
✓No income cap on the FHA assistance route
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Chris Luis, Broker/Owner of Mortgage-World.com

Written and reviewed by Chris Luis, Broker/Owner of Mortgage-World.com, NMLS #1630225. About the author

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