Buy a House With No Down Payment

How to Buy a House With No Down Payment

You’ve probably heard the advice that you need a 20% down payment in order to buy a house. The median house price in Washington State is around $400,000 so this can seem like a daunting task. Well, there is good news! The statement that you need a 20% down payment is a common misconception. In this article we break down a few different loans that allow you to buy a house with no down payment!

FHA Loan – 3.5% Down

The FHA Loan is a loan that is insured by the Federal Housing Administration or FHA. This loan is extremely popular with first time home buyers. With only 3.5% down required, it’s easier for aspiring homeowners to pull together the cash needed. In addition to the low down payment, recipients of this loan may qualify for down payment assistance. There are some requirements in order to qualify for this loan, but don’t let that deter you!

HomeReady Mortgage – 3% Down

The Home Ready Mortgage, Fannie Mae backed, is a loan designed to help low to moderate income households. A great benefit of the Home Ready Mortgage is that you can accept gifts from friends and family to go towards your down payment. This is a great way to purchase a home with very little money up front!

buy house with no down payment

VA Loan – 0% Down

The U.S. Department of Veteran Affairs insures the USDA loan. Designed for members of the U.S. military and surviving spouses, this loan provides many options for our service members. There are quite a few benefits that come with a VA Loan. For example, no maximum loan amount, credit score flexibility, and no required mortgage insurance. The biggest benefit with this loan is that it allows you to buy a home with no down payment at all! Undoubtedly, this gives you a ton of options and makes it way easier to buy a home!

USDA Loan – 0% Down

Another popular loan that doesn’t require a down payment is a USDA Loan. The U.S. Department of Agriculture backs this loan that is designed for people living in rural areas and people with low to moderate incomes. Fortunately, the definition of rural is a bit loose and some suburban neighborhoods meet the criteria needed for a USDA Loan.


As you can see, it may be way easier to purchase a home than you previously thought. There are a ton of loan options and down payment assistance programs that can help you buy a home! The loans mentioned in this article are a few of the many options available to you. To find out if you qualify for any of these loans, fill out the form below! While you wait, view our home buyer checklist to prepare for your dream home purchase!


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