First Time Home Buyer Zero Down Options

You can buy a first home with no down payment, but only through a few routes, and each one shuts out most buyers for a specific reason: military service, location, income or job. These seven are ordered by how close each gets you to zero cash at closing, starting with the one that waives the most. Each item says who it is wrong for, so you can skip what does not fit you.

The Neighborhood Assistance Corporation of America is a nonprofit that lends only through Bank of America. Its mortgage has no down payment, no closing costs, no private mortgage insurance and no minimum credit score. NACA looks at 12 months of on-time payment history instead, according to The Mortgage Reports' NACA guide. In 2026 its 30-year fixed rate was 5.625% for priority members (income at or below area median) and 6.625% for everyone else, who must buy in designated priority areas. Membership is $25 a year.

The price is time and rules. You attend a homeownership workshop, meet a housing counselor and attend a purchase workshop. Members also take part in mandatory advocacy volunteering. Your payment is capped at 31% of gross income and total debt at 40 to 43%. If the new payment is higher than your rent, you must save the difference for 3 to 6 months first. Getting to purchase readiness takes about three months.

Wrong for you if you need to close within weeks or will not volunteer.

A VA loan needs 0% down and has no monthly mortgage insurance. It typically carries the lowest rate of the major loan types, up to 0.40% below comparable conventional rates. Lenders usually want a credit score between 580 and 620, and eligible veterans can use the benefit more than once.

Zero down does not mean zero cash. You still owe closing costs. A seller can cover part of them: on Navy Federal's 0%-down loans, sellers can contribute up to 6% toward closing costs, CNBC Select reports. Ask for that in your offer.

Wrong for you if you are not active duty, a veteran or an eligible surviving spouse.

USDA loans need 0% down, a credit score of about 640 and household income at or below 115% of area median income. The "rural" label covers roughly 97% of US land, so many suburbs and small towns qualify. Some lenders add help on top. PNC pairs its USDA loan with a grant of up to $5,000 toward closing costs or the down payment.

You pay for the zero down through upfront and annual mortgage insurance fees, and that cost does not disappear the way conventional PMI can. Check an address's eligibility before you fall for the house.

Wrong for you if you are buying in a city or earn above the income cap.

Teachers, firefighters, EMTs and police officers can buy homes in designated revitalization areas at 50% off the list price, with a minimum investment of $100. You need a 580 credit score, and mortgage insurance is still required. On paper, no other item on this list cuts the price you pay.

Wrong for you if you work in any other profession, or you want to choose your neighborhood freely. The homes are limited to revitalization areas.

This is the route most buyers who do not fit the first four actually use. You take an FHA loan at 3.5% down or a conventional loan at 3%, and a second loan from a state, city or lender covers that amount. Mortgage-Info.com tracked 2,679 such programs as of September 2026. About 8% are outright grants, 32 to 36% are loans forgiven after 5 to 15 years in the home, and 56% are deferred second mortgages you repay later.

Examples of how it works:

• Guild Mortgage's Zero Down combines a 3.5%-down FHA loan with a forgivable second mortgage, for 0% effective down.
• Illinois's Access Home gives up to $15,000 as a zero-interest second loan, deferred up to 30 years unless you sell or refinance. In its first nine weeks, 1,500 buyers received $18 million.
• Freddie Mac's Home Possible allows combined financing up to 105% of the home's value when paired with an approved second.

On average, buyers who use assistance save almost $6,000 at closing.

Wrong for you if you expect to sell or refinance within a few years. A deferred loan comes due then.

With these loans you put in 1%, and the lender adds a non-repayable 2% grant so you reach a 3% conventional down payment. Rocket Mortgage, Guild, United Wholesale Mortgage and Lower all offer versions. Most require a 620 credit score, income at or below 80% of area median income, and a primary residence.

The grant caps are what to compare:

• Union Home Mortgage: $2,500
• ONE by Lower, launched August 5, 2026: $4,500, on loans up to $375,000
• Guild: $5,000
• UWM: $7,000

With these programs you still pay closing costs and mortgage insurance.

Fannie Mae's HomeReady loan needs 3% down but no minimum contribution from your own savings. The full amount can come from gifts, grants, employer assistance or assistance programs. It requires a 620 score and income at or below 80% of area median income. FHA also accepts gifts from family, employers, charities and government agencies. Ask your HR department whether your employer offers housing help, because the loans accept it. Home Possible (660 score) lets a parent join as a non-occupant co-borrower so their income helps you qualify.

If you need to put in some of your own money, the average federal tax refund in April 2026 was $3,275.

Wrong for you if your income is above 80% of area median income. In that case, FHA gift rules are the version open to you.

Work down the list in this order and stop at the first item you qualify for:

1. Service history? Use a VA loan.
2. Buying outside a city? Check USDA eligibility for the address.
3. Teacher, firefighter, EMT or police officer? Look at Good Neighbor Next Door.
4. None of these? Pair a 3% or 3.5% loan with assistance. Consider NACA if you have three months to spare.

You count as a first-time buyer if you have not owned a home in the past three years, so a past owner can still qualify. Expect most programs to require a homebuyer course, which is usually free or low-cost and takes a few hours online. They also require pre-approval from a participating lender.

One thing not to wait for is the proposed Homeownership Promise Act. It would match your savings 5 to 1, for up to $50,000 in federal help. It was referred to a Senate committee on September 23, 2026, and is not law. For context, the median first-time buyer put 10% down in 2025, so any route above beats the typical path.