Can you buy a house with no money down?

Yes. VA loans require 0% down for eligible veterans and active-duty service members. USDA loans offer 100% financing in qualifying rural and suburban areas. For buyers who don't qualify for those programs, down payment assistance from CalHFA and local housing agencies can cover the 3-3.5% minimum needed for FHA and conventional loans.

What credit score do I need to buy a house with no money down?

VA loans don't have a VA-mandated minimum, but most lenders require 620+. USDA loans typically require 640+. For FHA (3.5% down, not zero), 580+ gets you the minimum down payment. Higher credit scores get better rates regardless of the program.

How to buy a second house with no money down?

VA loans can be used for a second home if you have remaining entitlement. USDA loans require primary residence occupancy, so they work for a second purchase only if you sell the first. Most DPA programs require the home to be your primary residence and are limited to first-time buyers. For a second property purchase, VA is typically the only zero-down option.

How to Buy a House With No Money Down

Two loan programs require zero down payment. Several more cover your 3-3.5% minimum through grants and forgivable loans.

A $500,000 home with 3.5% down requires $17,500 at closing. With a VA or USDA loan, that number drops to zero. And for buyers who don't qualify for those programs, down payment assistance can cover most or all of the FHA and conventional minimums. The idea that you need 20% saved to buy a house hasn't been true for decades.

VA Loans: 0% Down for Veterans and Active Duty

VA loans are the strongest zero-down option available. No down payment, no monthly mortgage insurance, and no loan limit for borrowers with full entitlement. A veteran buying a $600,000 home puts down $0 and avoids the $200-$400/month PMI that conventional borrowers pay. The only upfront cost unique to VA is the funding fee (1.25-3.3% of the loan, depending on service history and down payment), and it can be financed into the loan. Disabled veterans with a service-connected disability rating get the funding fee waived entirely.

Eligibility

Active-duty service members, veterans with qualifying discharge status, National Guard and Reserve members with qualifying service, and surviving spouses of veterans who died in service or from a service-connected disability.

VA doesn't set a minimum credit score, but most lenders require 620+. Rates are typically competitive with or better than conventional, and there's no DTI cap — VA uses a residual income test instead, which is often more favorable for borrowers with higher debt loads.

Full VA loan details and requirements

USDA Loans: 0% Down in Qualifying Areas

USDA loans offer 100% financing for homes in eligible rural and suburban areas. More locations qualify than most people assume — the USDA eligibility map includes suburbs of major metros, not just farmland. Parts of Riverside County, San Bernardino County, and Sacramento County qualify in California. The upfront guarantee fee is 1% of the loan amount (financed into the loan) plus a 0.35% annual fee, which is significantly less than FHA's mortgage insurance.

Income Limits

There's an income cap: your household income can't exceed 115% of the area median income. For a family of four in many California counties, that's roughly $110,000-$130,000 depending on the area. Check the USDA income eligibility calculator for your specific county.

Buyers with moderate income purchasing in suburban or rural areas. If the property and your income both qualify, USDA is hard to beat on total cost of financing.

Full USDA loan details and eligibility

Low Down Payment Options: 3-3.5%

FHA: 3.5% Down

FHA loans require 3.5% down with a 580+ credit score. On a $400,000 home, that's $14,000. Scores between 500-579 qualify but need 10% down. FHA's 2026 loan limits range from $541,287 (most areas) to $1,249,125 (high-cost counties like LA and Orange County). The trade-off is mortgage insurance: 1.75% upfront plus 0.55% annually for the life of the loan.

FHA loan requirements

Conventional: 3% Down

Conventional loans go as low as 3% down with a 620+ credit score. On a $400,000 home, that's $12,000. You'll pay PMI until you reach 20% equity, but unlike FHA, PMI drops off automatically at 78% LTV. For buyers with 740+ credit scores, the PMI cost is modest ($80-$150/month on a $400,000 loan) and the rate is usually better than FHA.

Conventional loan details

Down Payment Assistance Programs

If you don't qualify for VA or USDA and can't cover the FHA or conventional minimum, down payment assistance (DPA) programs can fill the gap. These programs provide grants or forgivable second mortgages that cover part or all of your down payment and closing costs.

CalHFA MyHome Assistance

A deferred-payment junior loan up to 3.5% of the purchase price for down payment or closing costs. No payments until you sell, refinance, or pay off the first mortgage. Available for first-time buyers with FHA, VA, or conventional first mortgages through CalHFA.

CalHFA Zero Interest Program (ZIP)

Covers closing costs with a zero-interest, deferred-payment loan up to 3% of the first mortgage. Can be combined with the MyHome program to cover both down payment and closing costs.

Local Housing Authority Programs

Many California cities and counties offer their own DPA programs with grants (no repayment), forgivable second mortgages (forgiven after 5-10 years of occupancy), or below-market-rate second mortgages. Availability and terms vary by jurisdiction. Ask your loan officer which programs are active in your target area.

Most DPA programs require homebuyer education, income limits, and first-time buyer status (defined as not owning a home in the past three years). They can be combined with FHA, VA, USDA, or conventional first mortgages depending on the program.

Find Out Which Programs You Qualify For

A 15-minute call with a SRK CAPITAL loan officer covers which zero-down or low-down programs fit your situation, what your estimated monthly payment would be, and what steps to take next. We work with 200+ lender partners, so if one program doesn't fit, there's usually another that does.

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