Original article updated 2026-07-30. Retained for reference. Confirm current requirements with an appropriate provider or administering agency.
Direct answer
Eligible borrowers may be able to buy a qualifying primary residence without a down payment through a VA-backed or USDA guaranteed loan. Eligibility, property requirements and lender underwriting still apply. Closing costs and program fees may remain, and a price above the appraised value may require cash.
VA and USDA zero-down paths
VA generally does not require a down payment, although lenders may require one in some situations and an appraisal gap can create extra cash needs. VA loans do not require PMI, but a funding fee may apply. USDA guaranteed loans can provide 100% financing for eligible primary residences in qualifying areas and include an upfront guarantee fee plus an annual fee.
Zero down is not always zero cash
Buyers may still need earnest money, inspections, appraisal charges, prepaid taxes and insurance, escrow funding, moving costs, and closing costs not covered by credits or concessions. Review the down payment guide, compare VA lender options, and estimate closing costs before deciding how much cash to keep. A strong plan also preserves emergency reserves after closing.
Frequently asked questions
Can closing costs be financed on a zero-down loan?
Some costs may be covered by seller concessions, lender credits, gifts, or program-permitted financing, but rules and appraisal limits apply.
Are USDA loans available only on farms?
No. USDA housing loans are for eligible primary residences in qualifying rural and some suburban areas; the property cannot be an income-producing farm.
Primary sources for this update
- VA purchase loan
- VA funding fee and loan closing costs
- USDA Single Family Housing Guaranteed Loan Program
- USDA upfront guarantee fee and annual fee training
These specific statements were checked on November 11, 2026. Requirements can change; verify the rules for your own loan.