How to Buy a House With Little to No Money
Dreaming of owning your own home but worried about the finances? You’re not alone. One of the most common questions people ask when they start thinking about buying a home is: “Can I really buy a house with little to no money?”
At first glance, it can feel impossible. After all, traditional wisdom says you need to save for years to come up with a 20% down payment, plus thousands more for closing costs, inspections, and moving expenses. For many people, especially first-time buyers, that amount of cash just isn’t realistic.
But here’s the good news: you don’t have to let the lack of a big savings account keep you from your dream of homeownership. While it takes planning, creativity, and the right resources, buying a home with little to no money down is absolutely possible.
And no, you don’t have to dump out your change jar to make it happen.
In this guide, we’ll break down practical strategies, special loan programs, and smart financial moves that can help you buy a home with minimal upfront costs.
We promise you don’t have to use your coin jar!
Exploring Down Payment Assistance Programs
One of the most underused (and most helpful) resources for first-time homebuyers is down payment assistance (DPA). These programs are offered by state and local governments, housing finance agencies, and sometimes even employers.
Down payment assistance comes in several forms:
Grants – Money you never have to pay back, as long as you meet program requirements.
Low Percentage Down - Union Home Mortgage has several low down payment programs that can work for you
Things to keep in mind:
These programs often have income limits to ensure they’re helping people who truly need the assistance.
Some require you to complete a homebuyer education course, usually a short online or in-person class that can be completed in a day or two.
You’ll need to work with a lender who is approved to offer the program. (HINT HINT, that would be me!)
The extra time and paperwork are worth it, especially when I’m handling the heavy lifting, down payment assistance can save you thousands right out of the gate.
Consider FHA Loans and VA Loans
If you don’t qualify for a grant or DPA program, don’t panic—there are still loan options designed to make homeownership more affordable.
The Federal Housing Administration can back loans with lower down payment requirements than conventional loans, just 3.5% down if you have a credit score of 580 or higher.
FHA loans also have more flexible approval standards, making them a great choice for buyers with limited savings or less-than-perfect credit. While you will need to pay mortgage insurance, the smaller down payment can make homeownership achievable much sooner.
If you’re a qualifying veteran, active-duty service member, or eligible surviving spouse, a VA loan could be one of the best benefits available. VA loans offer:
0% down payment option
No private mortgage insurance (PMI)
Competitive interest rates
With a VA loan, you could literally buy a home without putting a single dollar down on the purchase price.
Negotiate Seller Concessions
When you make an offer on a home, the sale price isn’t the only thing you can negotiate—closing costs are on the table too.
Seller concessions are when the seller agrees to pay for certain costs on your behalf, such as:
Closing costs (loan origination fees, title insurance, escrow fees)
Prepaid taxes or homeowner’s insurance
Necessary repairs
Here’s an example: let’s say you’re buying a $200,000 home. Closing costs might run around $6,000. If you negotiate for the seller to cover those costs, that’s $6,000 less you need upfront.
While sellers won’t always agree—especially in competitive markets—they’re more likely to consider concessions if:
The home has been on the market for a while.
You’re able to close quickly.
You’re making a fair offer on the price.
Read more about seller concessions here: A guide to seller concessions
Build and Protect Your Credit Score
Even if you don’t have much cash saved, a strong credit score can help you in two important ways:
It makes you more likely to qualify for special low down payment programs.
It can get you a lower interest rate, which reduces your monthly payment and the amount of money you’ll need for reserves.
Some quick ways to boost your score before applying:
Pay down credit card balances to under 30% of their limit.
Make all payments on time even one late payment can hurt your score.
Avoid opening new credit accounts right before applying for a mortgage.
Check your credit report for errors and dispute anything inaccurate.
Even a small improvement, say, moving from a score of 660 to 700 could save you thousands over the life of your loan.
Consider USDA Loans
Not as well-known as FHA or VA loans, the USDA loan program is designed to help buyers purchase homes in eligible rural and suburban areas. Best of all, USDA loans offer:
0% down payment options
Low mortgage insurance costs
Competitive interest rates
Income limits apply, but they’re often more generous than people expect. And you don’t have to live “in the middle of nowhere” many small towns and outer suburbs qualify.
Bottom Line
Buying a home with little to no money down isn’t a pipe dream, it’s a reality for thousands of buyers every year. With the right combination of down payment assistance, special loan programs, seller concessions, and solid credit, you could be holding the keys to your new home sooner than you think.
Take some time and check out my Wealth Builder Page on my website to see how you can build financial wealth through homeownership!
If you’re ready to explore your options, fill out the form below to take the first step toward owning your home. Your future self will thank you.
0% down payment example for a 30-year fixed-rate VA loan: Total sales price $230,000, down payment $0, loan amount $230,000, interest rate 6.50%, Annual Percentage Rate (APR) 6.82%, final principal and interest payment $1,455. VA funding fee may apply unless exempt.
0% down payment example for a 30-year fixed-rate USDA loan: Total sales price $230,000, down payment $0, loan amount $230,000, interest rate 6.50%, Annual Percentage Rate (APR) 6.82%, final principal and interest payment $1,455. Guarantee fee may apply.
3.5% down payment example for a 30-year fixed-rate FHA loan: Total sales price $230,000, down payment $8,050, loan amount $221,950, interest rate 6.73%, Annual Percentage Rate (APR) 6.80%, final principal and interest payment $1,433.
Taxes, insurance, and mortgage insurance will be part of the total mortgage payment but are not included in this example. This example is for illustrative purposes only and may or may not be the current interest rate offered. Savings is based on the purchase price and down payment listed above and qualifying credit score. Call for the current rate and full disclosure of current terms.