If you're a qualified veteran or a service member, you might be eligible for a VA loan. These loans are guaranteed by the U.S. Department of Veterans Affairs and often require no down payment. However, there might be some upfront fees and eligibility requirements.
The U.S. Department of Agriculture offers USDA loans for eligible properties in rural areas. These loans also allow for 0% down payment, but the property location needs to meet specific criteria defined by the USDA.
Some local or state government agencies, as well as nonprofit organizations, offer down payment assistance programs. These programs can provide grants, loans, or second mortgages that cover the down payment or a portion of it.
While not a 0% down payment, you could negotiate with the seller to cover some or all of the down payment costs as part of your offer. This is more likely in a buyer's market or when the seller is motivated to close the deal quickly.
If your family is willing and able, they might gift you the funds for the down payment. Lenders usually require a gift letter and documentation to ensure the funds are a gift and not a loan.
Some lenders might have special programs that allow for low or no down payment. These programs often come with higher interest rates or additional fees, so be sure to carefully weigh the long-term costs.
A strong credit score and a favorable debt-to-income ratio could make lenders more willing to work with you on a low or no down payment loan.
In some cases, sellers might be willing to finance the purchase directly, essentially acting as the lender. This could potentially allow you to bypass the traditional down payment requirement.
While not exactly the same as traditional homeownership, these arrangements might allow you to eventually purchase the property with little to no down payment after renting for a certain period.
There might be creative financing options available, such as assuming an existing mortgage or structuring a deal with a private investor, that could reduce or eliminate the need for a down payment.