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).
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
Buying with zero equity means you are "underwater" the moment you sign, as selling costs (agent commissions) would exceed your home's value. FHA Down Payment Grants for 2026 Many state and local Down Payment Assistance (DPA)
While most buyers aim for the standard 20% down, two primary federal programs allow for 0% down as of April 2026: The "True" Zero-Down Pathways Buying with zero equity
Conventional "first-time buyer" loans only require 3% down.
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:
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.