Yes. VA loans and USDA loans both offer true zero down payment financing. VA loans are available to veterans, active-duty service members, National Guard and Reserve members, and eligible surviving spouses. USDA loans are available to buyers purchasing in eligible rural and suburban areas with household income below 115 percent of the area median. Many buyers are surprised to learn they qualify for one or both of these programs.

Down payment assistance programs are offered by state housing finance agencies, local governments, and nonprofit organizations. They typically provide grants or forgivable loans covering three to five percent of the purchase price. Qualification is usually based on income limits, which are often higher than you might expect, buyer status such as first-time or repeat buyer, and the property location. NMHL tracks hundreds of these programs and can match you with the ones available in your area.

With zero down payment programs, your main out-of-pocket costs are closing costs, which typically run two to five percent of the loan amount. However, you can often negotiate for the seller to cover these costs, use lender credits, or tap into closing cost assistance programs. In some cases, buyers move into their new home with less than one thousand dollars out of pocket.

Not necessarily. While a larger down payment reduces your monthly payment and eliminates mortgage insurance sooner, the cost of waiting to save can be higher than buying now with no money down. Home values historically appreciate three to five percent per year, meaning a year of waiting could cost you 10,000 to 20,000 dollars in equity you would have gained. The key is making sure your monthly payment is comfortable within your budget.