There are Two Common Types of Mortgages that Allow for a Zero Dollar Down Payment

USDA Loans

USDA stands for United States Department of Agriculture. USDA loans help those with low to mid-income ranges and is available mostly everywhere outside of large metropolitan areas. There are income limits and other guidelines that take place, however, ultimately they are a great choice for those living out of the city as a USDA loan comes with many benefits.  Most notable benefits in addition to a $0 down payment are:

  • Lower interest rates compared to other common types of mortgages
  • Lower monthly mortgage insurance than that of convention or FHA loans
  • Flexible credit guidelines that allow for exceptions for those with poor credit

Learn more and see if you qualify for a USDA loan Here.

VA Loans

VA loans are another common type of mortgage with a zero percent down payment. VA stands for Veterans Affairs. As the name would suggest, a VA loan is available for those who are active or retired military, or surviving spouses of a veteran. The Department of Veterans Affairs requires a funding fee (a percentage of the loan amount to be paid) but even this can be rolled into the mortgage and financed as part of your monthly payment. VA loans have no mortgage insurance either. This in of itself can save hundreds of dollars off of a mortgage payment.

More information on the requirements and benefits for VA loans can be found Here.


Know your rights as a consumer and realize that your mortgage is negotiable. A person can save thousands by asking for a fee to be removed, by shopping around and comparing Loan Estimates, or by obtaining a Mortgage Review which ensures the interest rate and fees are fair.

Jeremy Thuveson

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