If you keep hearing you need 20% down to buy a house, that advice is outdated for a lot of buyers in 2026. Between VA loans, USDA financing, state grants, and creative loan structuring, plenty of qualified borrowers across Virginia, Florida, Tennessee, Georgia, DC, North Carolina, South Carolina, and Maryland are closing with little to no cash out of pocket. The trick isn’t finding one magic program, it’s knowing which combination of tools fits your service history, your address, your income, and your family situation. Duane Buziak’s team doesn’t just look at one lender’s menu. We hunt across hundreds of wholesale lenders and program guidelines to find the fit that actually pencils out for you. Here are seven strategies worth understanding before you start shopping for a home.
1. VA Home Loans for Eligible Service Members
VA-guaranteed loans remain the strongest zero-down option available, offering up to 100% financing with no mortgage insurance requirement for eligible veterans, active-duty service members, and surviving spouses. The mechanism is straightforward: the Department of Veterans Affairs guarantees a portion of the loan, which lets lenders extend full financing without requiring a down payment or private mortgage insurance.
Consider a first-time buyer veteran purchasing in Norfolk, Virginia. She uses a VA loan to buy a home with no down payment at all, and rather than paying the VA funding fee in cash, she rolls it into the loan balance, keeping her cash-to-close limited to standard closing costs.
- Pull your Certificate of Eligibility electronically using your Social Security number and date of birth rather than waiting on paperwork.
- Confirm your occupancy timeline, since VA loans require the property to be your primary residence.
- Compare VA-approved lenders on funding fee percentage, rate, and closing cost credits, since pricing varies even though the guarantee terms don’t.
The most common mistake is assuming VA loans mean zero closing costs. They don’t. Buyers still owe standard closing costs and, unless exempt due to a service-connected disability rating, a funding fee based on down payment and prior VA loan usage. For buyers who’ve used entitlement before, second-tier entitlement math matters too: take the county loan limit, multiply by 25% for the maximum guarantee, subtract entitlement already used, then multiply by four to find your zero-down purchase ceiling. What to track: your total cash-to-close after the funding fee is financed, compared side by side against an FHA or conventional scenario for the same property.
2. USDA Rural Development Loans in Eligible Areas
USDA-guaranteed loans offer 100% financing in designated rural and eligible suburban pockets, and the eligibility map is more generous than most buyers expect. Because the government guarantees the loan against default, lenders can waive the down payment entirely for properties and borrowers who qualify.
Picture a buyer looking just outside metro Atlanta. A home on one side of a county road sits inside USDA’s eligible boundary; a home a quarter mile away doesn’t. The buyer who checks the USDA Rural Development eligibility tool before writing an offer avoids a wasted appraisal and a financing scramble.
- Check the exact property address, not just the town or zip code, against USDA’s eligibility map.
- Confirm household income against the county-specific income cap, which is stricter than most conventional loan limits.
- Get pre-approved with a lender who actively closes USDA loans, since not every lender on your list will.
The recurring pitfall is falling for a house before confirming address-level eligibility. USDA boundaries can split a single street, and a listing agent won’t always know the line. What to measure: whether your pre-approval income calculation stays under the published county income limit, confirmed current as of your application date since caps adjust periodically.
3. State and Local Down Payment Assistance Programs
State and local housing finance agencies offer grants or forgivable second loans that cover part of a down payment when paired with FHA or conventional financing. These programs work by layering a soft second lien, often forgiven after a set residency period, on top of a primary mortgage that still needs its minimum down payment satisfied.
For example, a first-time buyer in Maryland might pair an FHA loan requiring 3.5% down with a state forgivable second lien that covers that entire down payment amount, leaving the buyer responsible mainly for standard closing costs.
To put this into practice, contact your state housing finance agency directly or work with a broker who actively tracks current DPA offerings, since programs open, close, and change funding levels throughout the year. Confirm first-time buyer status and income eligibility requirements, and read the forgiveness schedule carefully, some second liens forgive over five years, others require repayment if you sell or refinance early.
The common mistake is assuming you can stack multiple DPA grants on one transaction. Many programs explicitly restrict combining assistance sources, and Duane’s team never recommends layering two grants without confirming the specific program rules allow it, since double-stacked assistance can violate program terms. What to measure: your net out-of-pocket cash required at closing after DPA funds are applied, not just the headline grant amount.
4. Gift Funds to Cover the Entire Down Payment
FHA and conventional guidelines, including Fannie Mae’s published requirements, allow 100% of a down payment to come from a documented family gift. This works because underwriters care less about where the money came from and more about proving it wasn’t a disguised loan that adds hidden debt.
Illustration: parents gift their daughter the full 3.5% down payment for an FHA purchase. They sign a gift letter stating the funds don’t need to be repaid, and the transfer shows up cleanly in bank records on both ends.
- Get a signed gift letter from the donor stating the relationship and confirming no repayment is expected.
- Collect the donor’s bank statements showing the funds were available and sourced, not suddenly deposited from an unclear origin.
- Document the transfer with a clear paper trail, wire confirmation or deposit slip, before closing disclosures go out.
The most frequent mistake is depositing a cash gift without paperwork. Large, undocumented deposits are a red flag that triggers underwriting delays or outright denial, because the lender can’t verify the source under CFPB underwriting standards. What to measure: a clean audit trail confirmed by underwriting with zero unsourced deposits flagged on your final approval.
5. Employer-Assisted Housing Benefits
Some employers, hospital systems, and municipalities offer housing grants as a recruitment or retention tool, and these benefits can cover down payment or closing costs outright. The mechanism is essentially a workplace perk functioning like a private grant, often forgivable if you stay employed for a set number of years.
Consider a hospital employee relocating to take a position in DC. As part of her signing package, the hospital offers a forgivable relocation grant applied directly toward her down payment, reducing what she needs to bring to closing.
Ask your HR department about employer-assisted housing or relocation benefits early, ideally before you go under contract, since some employer programs require pre-enrollment or advance notice before a purchase is finalized. Don’t assume these benefits are only for executives; many hospital systems, universities, and local governments extend them to a wide range of staff roles.
The mistake most buyers make is waiting until after finding a home to ask about employer benefits, missing enrollment windows that some programs require weeks in advance. What to measure: the dollar amount of employer benefit successfully applied toward your down payment or closing costs, confirmed in writing before you count on it in your closing budget.
6. Piggyback Second Mortgage Structuring
A piggyback structure combines a first mortgage with a smaller second lien, reducing the cash needed at closing while often avoiding monthly mortgage insurance altogether. The math works because splitting the financing into two pieces can keep the first loan’s loan-to-value ratio under the threshold that triggers mortgage insurance, even though the buyer isn’t putting down a large chunk of cash.
As an illustration, a buyer structures an 80/10/10: 80% financed on the first mortgage, 10% financed through a second lien, and only 10% paid in cash, or in some zero-down variations, the second lien covers what would have been the entire down payment.
- Model the combined monthly payment across both liens, not just the first mortgage payment.
- Compare that combined payment against the cost of a single loan carrying mortgage insurance.
- Confirm the second lien’s rate, term, and any prepayment terms before agreeing to the structure.
The common mistake is focusing only on how much cash the structure saves at closing while ignoring that the second lien usually carries a higher rate and a shorter term, which can raise your total monthly cost more than mortgage insurance would have. What to measure: the combined monthly payment across both liens compared directly to a single-loan-with-mortgage-insurance scenario for the same purchase price.
7. Shop Multiple Wholesale Lenders for Program Fit and Rate
Not every lender offers the same access to VA, USDA, or state DPA combinations, and pricing on the exact same program can vary meaningfully from one wholesale lender to another. This is the step most zero-down guides skip, and it’s the one Duane Buziak’s brand is built around: we don’t just look at one rate, we hunt across the market.
Suppose two lenders quote an identical VA rate on the same property. One offers a lender credit that offsets more of the closing costs, which lowers the buyer’s actual cash needed even though the rate on paper looks the same. Without comparing quotes side by side, that difference would have gone unnoticed.
Request a soft-pull, no-credit-impact pre-approval comparison across lenders and programs before committing to one path. This lets you see program access, rate, and lender credits without the score hit that comes from multiple hard inquiries. Watch. Compare. Save. is the whole point of shopping this way instead of accepting the first number offered.
The common mistake is accepting the first quoted rate without comparing fees, lender credits, and program pairings across multiple wholesale lenders. What to measure: total cash-to-close and APR, not just the interest rate, across at least two to three lender quotes for the same program on the same property.
Worked example: Suppose a buyer in Chesapeake, Virginia is purchasing a $350,000 home using a VA loan with full entitlement and no prior VA loan usage. At 100% financing, the base loan amount is $350,000. With a first-time-use VA funding fee of 2.15%, that adds $7,525, financed into the loan for a total loan amount of $357,525. At a 6.5% rate on a 30-year term, principal and interest runs approximately $2,260 per month, before taxes and insurance. The buyer’s cash-to-close, assuming a seller-paid or lender-credit-offset closing cost arrangement, could land near $0 to $2,000 out of pocket, compared to $70,000 upfront on a conventional 20%-down purchase of the same home. That gap is the entire reason zero-down programs matter for buyers who have income to support the payment but haven’t stockpiled a six-figure down payment.
Here’s a side-by-side look at how these paths generally compare:
| Program | Minimum Down Payment | Mortgage Insurance | Who It Fits |
|---|---|---|---|
| VA Loan | 0% | None (funding fee applies) | Eligible veterans, active-duty, surviving spouses |
| USDA Loan | 0% | Annual + upfront guarantee fee | Buyers in eligible rural/suburban zones, under income cap |
| FHA + State DPA | 0% (with DPA covering 3.5%) | Upfront + annual MIP | First-time buyers eligible for state assistance |
| Conventional + Gift Funds | 3% (via HomeReady) covered by gift | PMI until 78-80% LTV | Buyers with willing family donors |
| Piggyback 80/10/10 | 0-10% cash, rest financed via second lien | None on first lien | Buyers wanting to avoid PMI without large cash reserves |
Note: this table uses standard HTML markup for accurate rendering, not a markdown table.
Ten common questions buyers ask:
Can I really buy a home with no down payment in 2026? Yes, through VA loans, USDA loans, or conventional/FHA financing paired with gift funds or state down payment assistance, depending on your eligibility and location within a licensed state.
What does LTV mean? LTV, or loan-to-value ratio, is the loan amount divided by the home’s appraised value; a 100% LTV loan means the entire purchase price is financed with no down payment.
What is a forgivable second mortgage? It’s a second lien, often from a state DPA program, that doesn’t require repayment as long as you meet residency requirements, typically living in the home for a set number of years.
Does a VA loan really require no down payment? Yes, eligible borrowers can finance up to 100% of the purchase price, though closing costs and, unless exempt, a funding fee still apply.
Is USDA financing only for farms? No, USDA eligibility covers many suburban and small-town areas outside major metro cores, not just agricultural properties.
Can gift funds cover 100% of a down payment? Yes, under FHA and many conventional guidelines, a documented gift from an eligible donor can cover the entire down payment requirement.
What is a gift letter? A gift letter is a signed statement from the donor confirming the funds are a gift, not a loan, and that no repayment is expected.
Can I combine a state DPA grant with a VA loan? Sometimes, but many state programs restrict combining certain assistance types, so confirm program-specific rules before assuming grants can be stacked.
What’s the catch with piggyback second mortgages? The second lien usually carries a higher rate and shorter term than the first mortgage, which can raise your total monthly payment even though it eliminates mortgage insurance.
Does zero down mean zero closing costs? No, zero down payment only refers to the down payment itself; buyers should ask about no-out-of-pocket closing options rather than assume closing costs disappear.
Choosing Your Starting Point and Locking In the Right Combination
Start by confirming VA or USDA eligibility first, since both offer 100% financing without needing an assistance layer on top. If neither applies to you, move to gift funds or state DPA programs paired with FHA or conventional financing, and check whether your employer offers a housing benefit you haven’t asked about yet. Whichever combination fits, the last step is always the same: rate-shop that exact combination across multiple wholesale lenders before you lock anything in, because the same program can cost meaningfully different amounts depending on who’s pricing it.
Your dream home is waiting, don’t let the mortgage process hold you back. Get your free rate comparison and personalized loan match today, with same-day expert guidance to help you find the right path forward, whether you’re a first-time buyer or ready to refinance.
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