Top 3 No-Down-Payment Home Loan Providers

Discover three leading options for home loans without a down payment: VA loans through the Department of Veterans Affairs, Navy Federal Credit Union financing, and USDA rural development loans. These programs cater to eligible veterans, military members, and rural residents, offering affordable homeownership solutions with minimal or zero upfront costs. Always verify your eligibility and consult experts before proceeding with any mortgage application to ensure the best fit for your financial situation.

Leading Institutions Offering Zero-Down-Payment Home Loans

Many prospective homeowners seek mortgage options with minimal or no down payment requirements. While some lenders offer low down payment loans, fully zero down payment mortgages are uncommon. Here, we highlight three entities that provide home loans without requiring a down payment:

Department of Veterans Affairs
Eligible service members, including veterans, National Guard, Reserves, and active-duty personnel, can qualify for VA loans that often come with no down payment. These loans also exclude the need for private mortgage insurance. The program's funding fees, paid by borrowers, are incorporated into the loan balance, with varying rates: 2.15% for first-time veterans or active military and 2.4% for other eligible reservists and guards members.

Navy Federal Credit Union
As the largest credit union in membership and assets, Navy Federal offers 100% financing home loans with no down payment for specific military-related members, including certain civilian employees of the Department of Defense and immediate family members. Their funding fee is 1.75%, which is typically lower than VA loan fees, making it a popular choice for eligible members.

USDA Rural Development Loans
The USDA is a significant provider of no-down-payment home loans nationwide. Despite its name, the program isn't limited to farmland residents. It’s open to eligible borrowers based on income levels and geographic location. While not official, it’s often preferred by first-time homebuyers, increasing their chances of approval, although repeat buyers may also qualify if they meet the criteria.

Both VA and Navy Federal loans have specific eligibility restrictions, but USDA loans offer broader possibilities for those seeking zero-down home financing, making them worth exploring.

Important Notice:

All information shared here results from research, expert opinions, and publicly available data. Since lending criteria and financial scenarios are subject to change, the details may vary over time. We recommend consulting a financial professional before deciding. The website's content is for informational purposes only and shouldn't replace personalized advice.