Quick Answer
Yes, real zero-down options exist, but they depend on who you are and where the home is. A VA loan is 0% down for eligible veterans, active-duty service members, and some surviving spouses, with no monthly mortgage insurance. A USDA loan is 0% down for homes in eligible rural and suburban areas, with income limits. For everyone else, the closest most buyers get is a low-down-payment loan: an FHA at 3.5% with credit of 580 or higher, or a conventional loan at 3% for qualifying first-time buyers, sometimes paired with down payment assistance that covers the down payment.
The honest answer is that "no money down" is real, and Texas buyers use it every day. The catch is that a zero down payment is not the same as zero cash. You still need money for closing costs, prepaids, and reserves, and in Texas those commonly run about 2% to 5% of the price on top of whatever your down payment is.
These programs are legitimate and widely used. The key is understanding which one fits your situation, what your true cash-to-close will be, and whether the total cost of the loan makes sense for your goals.
Your Zero and Low-Down Options at a Glance
Here is the whole menu in one table. These are the current general rules, and exact terms change and vary by lender, so treat the details below as a starting point, not a quote.
| Option | Down payment | Who it fits | The catch |
|---|---|---|---|
| VA loan | 0% | Veterans, active duty, some surviving spouses | Eligibility through the VA; one-time funding fee unless waived |
| USDA loan | 0% | Homes in eligible rural and suburban areas | Area income limits; property must be USDA-eligible |
| FHA plus DPA | 3.5%, often covered by assistance | Buyers with 580+ credit using Texas DPA | DPA has income and purchase-price limits |
| Conventional 3% | 3% | First-time and income-qualifying buyers, 620+ | Mortgage insurance until you build equity |
VA Loans: Zero Down for Those Who Served
VA loans are available to veterans, active-duty service members, and some surviving spouses, with eligibility established through the VA. They offer 0% down and no monthly mortgage insurance, which is a rare combination. In exchange, the VA charges a one-time funding fee. As of 2026, that fee is 2.15% for first use at 0% down, 1.50% at 5% or more down, and 1.25% at 10% or more down, and it is waived for some veterans with service-connected disabilities and for some surviving spouses.
The VA sets no official minimum credit score, but lenders typically want to see around 580 to 620, and your debt-to-income ratio still has to work. With full entitlement there is no maximum loan amount. This is the best zero-down product available, and it is one of the most valuable benefits for anyone who has served.
USDA Loans: Zero Down in Eligible Areas
USDA loans are available for homes in USDA-eligible rural and suburban areas, so they work best outside the big metros, including many outer and suburban areas around San Antonio and the Texas Hill Country. There is no official loan limit, approval is driven by your debt-to-income ratio, and there is no official minimum credit score, though lenders often want to see around 620 to 640.
Area income limits apply, and the property has to sit in a USDA-eligible zone, so this is not a program you can assume works for every neighborhood. The program charges a modest guarantee fee in place of mortgage insurance, and it is for primary residences only.
FHA Plus Down Payment Assistance: The Closest Most Buyers Get
If you do not qualify for VA or USDA, the next best route is an FHA loan at 3.5% down with credit of 580 or higher, paired with a Texas down payment assistance (DPA) program. Statewide programs through TSAHC and TDHCA offer around 5% of the loan amount, and San Antonio and Bexar County run local programs too. In eligible cases, that assistance can cover your entire 3.5% down payment, leaving you to cover only closing costs and reserves.
- Texas State Affordable Housing Corporation (TSAHC): Grants and second liens that can cover your down payment and part of your closing costs.
- My First Texas Home: Below-market interest rates plus down payment assistance through the Texas Department of Housing and Community Affairs.
- San Antonio and Bexar County programs: Local assistance for eligible buyers that can stack with the statewide options.
Some DPA is a forgivable grant, forgiven after a set period if you stay in the home, and some is a repayable second lien. Which structure fits you comes down to your income, your credit, and the program rules. If you want the full rundown, my guide to the best down payment assistance programs in Texas goes through them one by one.
Conventional Loans: 3% Down for Qualifying Buyers
Programs like HomeReady and HomePossible let qualifying first-time and income-limited buyers put down just 3%, with a credit score around 620 or higher and a clean credit history. Conventional loans carry private mortgage insurance at low down payments, but unlike FHA it can drop off once you build enough equity, which makes it the cheaper long-term option for many buyers.
What Zero Down Really Costs
Even with zero down, you still need cash for closing costs, prepaids, reserves, and usually your earnest money deposit. Closing costs in Texas commonly run about 2% to 5% of the purchase price, and that is on top of the down payment, not instead of it. Do not confuse zero down payment with zero cash needed.
You also need to understand the total loan cost. A VA funding fee or USDA guarantee fee gets added to your loan balance, which nudges your monthly payment up slightly. That is still far cheaper than saving a 20% down payment for years, but it is real money. For the full breakdown of what lands on your closing statement, see what buyers really pay in closing costs in Texas.
The Real Math on a $300,000 Home
Let's put the numbers side by side on a $300,000 purchase: a VA loan at 0% down versus an FHA loan with the 3.5% down payment covered by a Texas DPA program. These are illustrative numbers to show how the cash works, not a quote, and your actual figures depend on your loan and your program.
A Worked Example
Illustrative numbers to show the idea. Your program amounts are confirmed at application.
In both paths the down payment itself is covered. What neither one covers is closing costs, prepaids, and reserves. That is the real lesson: the question is never only "what is the down payment?" It is "what is my total cash-to-close?" Zero down gets you in the door, but you still want money left over after closing for real life, and that is the part that decides whether the loan makes sense.
When Zero Down Makes Sense
- You are eligible for a VA loan and have limited savings
- You want to buy now rather than wait years to save 20%
- The monthly payment with zero down is affordable on your budget
- The area you are buying in qualifies for a USDA loan
- A down payment assistance program covers your down payment
For a broader look at all the routes to zero-down homeownership, see options for buying a home with no money down.
When to Put Money Down Instead
- You have the cash and want a lower monthly payment
- Putting 20% down eliminates mortgage insurance entirely on a conventional loan
- You want maximum equity from day one
- The property is an investment (not your primary residence)
Patriot Pro Tip
The fastest way to know your real options is to get pre-approved before you tour a single home. Pre-approval tells you which zero-down or low-down program you actually qualify for, what your true cash-to-close will be, and whether a funding fee, income limit, or DPA cap applies to you. It turns "can I buy with no money down?" from a wish into a number on a page, and it makes your offer stronger in a multiple-offer situation.
Reality Bites
"No money down" usually still means you need money. Closing costs, prepaids, reserves, and sometimes part of the down payment beyond what the program covers are still on you. Zero down does not mean zero cash, and a buyer who shows up at closing without enough for title work and the first year of insurance does not close. Plan around the real number, not the headline.
A Word of Caution
Eligibility rules, income limits, funding fees, and DPA amounts vary and change. The figures on this page are current general rules, not a quote for your situation. Confirm your specific eligibility with a lender before you plan around any of them, and do not assume everyone qualifies for zero down. VA requires eligibility through the VA, USDA requires the right property and the right income, and DPA has its own caps. The fastest way to know where you stand is to have a lender run the numbers for your credit profile and the property you have in mind.
The Bottom Line
Yes, you can really buy a house with no money down, but only if you fit a specific program and the property fits its rules. VA and USDA give true 0% down to the buyers they cover, and FHA plus Texas DPA comes close for everyone else. The real question is not the down payment alone, it is your total cash-to-close and whether you keep enough reserves to be comfortable after the keys are in your hand. That is the number worth running before you fall in love with a house.