Some lenders will pay your closing costs in exchange for a slightly higher interest rate. 4. The Psychological & Financial Cost
Buying a house without savings is a high-wire act of financial engineering—entirely possible, but requiring a shift from the traditional "save then buy" mindset to one focused on leveraging specific programs and understanding long-term trade-offs. 1. The "True" Zero-Down Pathways buying a house with no savings
Exclusive to veterans, active-duty service members, and eligible surviving spouses. These loans require no down payment and typically lack private mortgage insurance (PMI), though they do carry a one-time "funding fee" (usually 2.15% for first use) that can often be rolled into the loan. Some lenders will pay your closing costs in
If you don't qualify for VA or USDA, you can often reach "zero out of pocket" by stacking low-down-payment loans with grants: If you don't qualify for VA or USDA,
Many state and local Down Payment Assistance (DPA) programs offer grants (free money) or deferred-payment second mortgages that are forgiven if you stay in the home for a set period (often 5–10 years).
You can negotiate for the seller to pay your closing costs. For instance, you might offer $310,000 for a $300,000 house on the condition the seller pays $10,000 toward your fees.