How to Buy a House with 0% Down (2025) | Mortgage Lender Tips & Secrets

Yes, you can buy a house with zero down in 2025. I talked about how a first-time buyer can do it, and I want to give you the version I gave in January 2025.

First, why would you buy with little or nothing down when people like Dave Ramsey say to save 20%? Twenty percent down is great if you can save $100,000. But what about everyone else? Let me tell you about a couple I will call Bob and Susie. They came to me wanting to put about $50,000 down and only had about $20,000, but they wanted to get educated early. Good for them. I think people should start learning about buying as early as possible. They looked at programs and bought. I just checked, and their house is worth around $500,000. They bought for about $380,000, so they are sitting on about $120,000 in equity, and the mortgage interest may be tax deductible if they itemize. Instead of putting $20,000 down, they used a zero down program and kept their cash for furniture, paint and reserves in the bank. And if you ever talk to a lender who thinks it is okay for you to buy a house with no money in your account at closing, run. If they had waited for 20% down at their savings rate, it would have taken about three to five years, and they would have missed out on $120,000 of appreciation to put down $100,000. That would have been a bad idea.

Now the downside. The less you put down, the higher the payment and the more risk you take. If you buy with nothing down and the house is worth less next year, you may not have enough equity to even pay an agent to sell it. So plan on it being a 5 to 10 year home. If someone tells me they want to buy but plan to sell in three years, I tell them to keep renting. Real estate is a long-term hold.

Here are the products to ask about. In most states there are grants, bonds and programs that give you either a gift toward the down payment or a silent second, which is basically borrowed money, so you do not need to come to the table with a down payment at all. Some have credit score and income requirements, and some require low to moderate income. Most states have programs worth checking for first-time buyers.

Two more. A VA loan gives a veteran a path with no down payment and no mortgage insurance. USDA is the Department of Agriculture's rural loan, and if the home is in an eligible rural area on USDA's map and your household income is under its limits, you can buy with zero down. Look at it when you are getting pre-approved.

What if you are not a first-time buyer? With most programs today, a first-time buyer is someone who has not owned a home in the last three years. That is pretty liberal, since you can be one even if you owned a home before. Everyone else can look at Fannie Mae and Freddie Mac programs with as little as 3% down, or FHA. For the average house, if you have owned before you can get in pretty easily with 3 to 5% down.

The first step is to talk to a mortgage lender and a real estate agent, learn your area, get pre-approved, and make sure your lender shows you every option. Start with down payment assistance or get your rate. MortgageOne is now licensed in 49 states.