How To Buy A House With No Money Down

If saving up for a down payment has been one of the biggest hurdles standing between you and owning a home, you’re not alone. For many Arkansans, coming up with thousands of dollars upfront just isn’t realistic. In fact, the average down payment required for a home purchase is between 5 and 20% of the home price, which can often feel out of reach for many potential buyers. That’s why zero-down mortgagesRealtor fees, closing costs and fees may still apply. All loans are subject to credit and property approval. are making a comeback, giving more buyers a chance to get into a home sooner without having to save up. 

At Arkansas Federal Mortgage, we can help you explore this option and find out if a zero-down mortgage is right for you. Apply today or talk with one of our local home loan experts to get started. 

What Is a Zero-Down Mortgage? 

A zero-down mortgageRealtor fees, closing costs and fees may still apply. All loans are subject to credit and property approval. is exactly what it sounds like—you can buy a home without making a down payment. Instead of putting down the typical 5%, 10%, or even 20%, a zero-down loanRealtor fees, closing costs and fees may still apply. All loans are subject to credit and property approval. covers 100% of the home’s purchase price. 

While you won’t need a traditional down payment, you’ll still be responsible for closing costs, which include things like title insurance, appraisal fees, loan origination fees, recording fees, and taxes. 

Still, not having to come up with a large down payment can make a huge difference, especially if you’re ready to buy but haven’t been able to save much. For many Arkansans, it’s the opportunity they’ve been waiting for. 

How Do You Get a Zero-Down Mortgage Loan? 

Getting a zero-down payment mortgageRealtor fees, closing costs and fees may still apply. All loans are subject to credit and property approval. isn’t as complicated as you might think. While every loan program has different requirements, here’s what lenders typically look for: 

• A strong credit score (700 or higher with Arkansas Federal) 

• Steady income and employment history 

• Low debt-to-income ratio 

• Solid payment history 

Some loans also have limits based on your income or where you’re buying the home. The good news? Our local mortgage experts at Arkansas Federal can walk you through every step. We’ll help you understand what you qualify for and what makes the most sense for your goals. 

Common Types of Zero-Down Mortgages 

You’ve probably heard of popular $0 down mortgage options backed by the government, like VA or USDA loans. But at Arkansas Federal, we also offer conventional zero-down mortgagesRealtor fees, closing costs and fees may still apply. All loans are subject to credit and property approval. for qualified buyers. That means you don’t have to be a first-time buyer or meet special government criteria to take advantage of this opportunity. 

Here are some of the most common types of zero-down mortgageRealtor fees, closing costs and fees may still apply. All loans are subject to credit and property approval. programs you might have already heard of: 

• VA Loans: Available to eligible veterans, active-duty service members, and some surviving spouses. 

• USDA Loans: Designed for buyers purchasing homes in qualifying rural areas of Arkansas. 

• Down Payment Assistance Programs: These can provide added support, especially if you’re a first-time buyer. 

Even if you’ve owned a home before and don’t qualify for a VA, USDA loan, or down payment assistance, you could still be eligible for a zero-down mortgageRealtor fees, closing costs and fees may still apply. All loans are subject to credit and property approval. with Arkansas Federal. As one of the trusted zero-down mortgageRealtor fees, closing costs and fees may still apply. All loans are subject to credit and property approval. lenders in Arkansas, we can help you explore your options and find the right fit. 

Pros and Cons of a Zero-Down Mortgage 

Like any loan, a zero-down mortgageRealtor fees, closing costs and fees may still apply. All loans are subject to credit and property approval. has its pros and cons. 

Pros: 

• You can become a homeowner faster, even if you haven’t saved for a down payment. 

• You’ll keep more cash on hand for moving costs, home repairs, or your emergency fund. 

• You may be able to start building equity instead of renting. 

Cons: 

• Since you’re financing the entire cost of the home, your monthly payments may be a bit Since you’re financing the entire cost of the home, your monthly payments may be a bit higher than with a traditional home loan with a down payment.  

• Mortgage insurance is often required, which adds to your monthly cost. 

• You’ll start with less equity, which can make refinancing or selling tricky if home values drop. 

Still wondering if a zero-down mortgageRealtor fees, closing costs and fees may still apply. All loans are subject to credit and property approval. is a good idea? It depends on your situation, but for many people, the answer is yes. 

What About Closing Costs? 

Even with a zero percent down mortgage,Realtor fees, closing costs and fees may still apply. All loans are subject to credit and property approval. there are still some upfront costs to plan for, mainly closing costs (title insurance, appraisal fees, loan origination fees, recording fees, and taxes). These usually run between 2% and 5% of the home’s purchase price. While they aren’t part of your down payment, they’re still an important part of the process. 

If you’re getting a mortgage with $0 down payment,Realtor fees, closing costs and fees may still apply. All loans are subject to credit and property approval. you might be wondering how to handle those costs. The good news is you have options, such as: 

• Asking your lender if some closing costs can be added to your loan. This depends on the type of loan you choose and your qualifications. 

• Working with your real estate agent about negotiating with the seller to help cover some of the costs. 

Our team at Arkansas Federal can help you explore these options and determine what’s realistic for your budget. 
 

How Much Are Monthly Payments with A Zero-Down Loan? 

With a zero percent down mortgage,Realtor fees, closing costs and fees may still apply. All loans are subject to credit and property approval. your monthly payment is usually a bit higher since you’re financing the full cost of the home.  

If you have a reliable income but haven’t had time to build up a big nest egg, a zero-down mortgageRealtor fees, closing costs and fees may still apply. All loans are subject to credit and property approval. could be a great option. Just be sure to plan for other costs like closing fees and ongoing expenses like maintenance. 

What are Some Other Low Down Payment Alternatives? 

Not everyone will qualify for a zero-down loanRealtor fees, closing costs and fees may still apply. All loans are subject to credit and property approval. —and that’s okay! Arkansas Federal Mortgage offers other low-down payment options, including: 

• Conventional loans with as little as 3% down 

• FHA loans for first-time home buyers with flexible credit requirements 

• First-time buyer programs 

The best way to find your fit? Talk to one of our local mortgage officers. We’ll take the time to get to know your situation and help you make the best decision. 

Your Arkansas Mortgage Partner, Every Step of the Way 

Buying a home is exciting, but it can also feel overwhelming. That’s why we’re proud to offer local support from a team that truly understands Arkansas, the housing market, and what you’re going through. 

From application to closing, our local lenders are here to guide you every step of the way. 

Ready to Apply for a Zero-Down Mortgage? 

Let’s get started! Our mortgage application is quick and easy, and all loan decisions are made right here in Arkansas. 

Whether you’re buying your first home or your next one, we’re here to help you make it happen—without a down payment holding you back. Apply for a zero-down mortgage today.Realtor fees, closing costs and fees may still apply. All loans are subject to credit and property approval.