How much you have to put down on a home depends on the type of loan you’re considering. While you’ll need to put down at least 3% of the home’s purchase price for a conventional loan or 3.5% for an FHA loan, USDA and VA loans don’t require a down payment.

Can You Buy A House Without A Down Payment?

Yes! It’s possible to buy a home with no money down. However, you won’t be able to get a zero-down conventional loan. You’ll need to get a government-backed loan.

Government-backed loans are mortgage loans that the government insures. They present less of a risk to lenders because the government will cover the financial loss if you default on the loan. This means that lenders will be more willing to issue lower-than-average interest rates and offer less-strict down payment requirements.

Currently, you can buy a home with no money down if you qualify for a VA loan or a USDA loan. VA loans are mortgage loans for current and former members of the Armed Forces and certain surviving spouses. USDA loans are mortgage loans for homes in qualifying rural and suburban areas.

Both VA loans and USDA loans have a zero-down payment guarantee, but you must meet the minimum qualifications set by the USDA and the Department of Veteran Affairs (VA).

What Are The Minimum Down Payment Requirements?

The amount you’ll need for a down payment depends on the type of loan you choose. Some of the minimum down payment requirements also depend on whether you’re buying a primary residence, secondary residence or investment property.

Down Payment On Your Primary Residence

Down payment requirements for your primary residence, or main home, can vary. It depends on the type of loan you’re applying for and your personal financial situation.

Conventional loan: Conventional loan requirements for primary residences are totally up to the individual lender. Some lenders might require you to have 5% down, while other lenders may only require 3%. If you have a credit score that’s above 620 points, your lender may give you access to lower down payment loan options.
FHA loan: With an FHA loan, you’ll need a down payment of at least 3.5%. To be able to put down the minimum 3.5% FHA down payment, you’ll need a credit score of 580 or higher. If your credit score is between 500 and 579, you’ll be required to put down at least 10%. The minimum credit score required by Rocket Mortgage is 580.
VA loan: You don’t need a down payment to qualify for a VA loan. There are specific length-of-service requirements that determine your eligibility, and your discharge reason also plays a role. You can view complete service requirements for the VA loan program on the Department of Veterans Affairs (VA) website.

If you’re the spouse of a military member or veteran who died in service or from a service-related disability, you may also be eligible for a VA loan. Full eligibility requirements for spouses are also available on the VA website.

USDA loan: Like a VA loan, you don’t need to have a down payment to get a USDA loan. But to qualify, your home needs to be in an approved rural or suburban area and your household members also need to meet certain income requirements.

Down Payment On Your Secondary Residence

A second home is a residence that you intend to occupy in addition to your primary residence. This can be a vacation home or a property that you visit on a regular basis.

Conventional loan: Conventional loan requirements are higher for people who want to buy a second home. To qualify for a loan on a second home, you’ll need a down payment of at least 10%. Keep in mind that restrictions on what is and isn’t considered a second home may apply. For example, you can only rent the home for up to 180 days a year.
FHA loan: You cannot use an FHA loan to buy a second property.
VA loan: You cannot use a VA loan to buy a second property.
USDA loan: You cannot use a USDA loan to buy a second property.

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