If you’ve been dreaming of buying your first home but feel like the down payment is holding you back, you’re not alone. It’s one of the most common concerns we hear from buyers—especially first-time homebuyers. The good news? Not all loan programs require a big chunk of cash up front. In fact, some offer zero down payment options if you qualify. Let’s walk through the options together, so you can figure out the right path forward based on your situation.
At Ramon Espinoza Home Loans, we don’t say “no”; we say “how”—and that starts with showing you the most affordable loan programs out there.
Zero Down Payment Options
Yes, you read that right—zero down is possible. There are two main programs that offer this:
- VA Loans: Designed for eligible military service members, veterans, and some surviving spouses.
- USDA Loans: Available to buyers purchasing in rural and semi-rural areas, with income and property eligibility requirements.
VA Loans are hands-down one of the best loan products available. They offer zero down, no mortgage insurance, and easier credit flexibility compared to other loans. You’ll need a Certificate of Eligibility (COE), which you can get with your DD214 if you’re a veteran. One big myth we hear often is that VA appraisals are tougher or more likely to come in low—not true. VA appraisers use the exact same guidelines as conventional and FHA appraisers.
USDA Loans also offer zero down, but they do come with a couple of important conditions:
- The home must be located in an eligible rural area.
- The entire household’s income must be below a certain limit, based on the county and family size.
For example, in some counties a family of four might need to earn under $105,000 total to qualify—even if not all members are on the loan. So if your cousin lives with you and makes $60K, that gets counted in the household total.
Low Down Payment Options
If you don’t qualify for a VA or USDA loan, don’t worry—there are still great options with low down payments:
- FHA Loans: Minimum 3.5% down, available to a wide range of credit scores.
- Conventional Loans: As low as 3% down for first-time buyers who meet income requirements.
- Down Payment Assistance: Many programs can help cover part—or even all—of your required down payment.
FHA loans are a solid option, especially if your credit needs some work. The 3.5% down is fixed, but Arizona buyers often use down payment assistance programs to cover that amount completely.
Conventional loans can dip to 3% down through programs like HomeReady or Home Possible, but there are strings attached:
- You must be a first-time homebuyer (or haven’t owned a home in the last three years).
- Your income must fall below a certain threshold, usually around 80% of the area median income. In Maricopa County, that’s roughly under $80,000 a year.
If you don’t qualify for those, the next step up is 5% down for standard conventional loans.
So… Which One Is Right for You?
It really comes down to your eligibility and financial picture. If you’re a veteran or active-duty military, VA is the best option—no question. If you’re buying in a smaller town and fall within income limits, USDA could be perfect. For most first-time buyers, FHA or conventional loans with assistance can make homeownership a reality with very little out-of-pocket.
Here’s a quick recap:
- Best for Veterans: VA Loan (0% down)
- Best for Rural Areas: USDA Loan (0% down)
- Best for Lower Credit Scores: FHA Loan (3.5% down)
- Best for Moderate-Income First-Time Buyers: Conventional Loan (3%–5% down)
Let’s Talk About Your Options
No matter your income, background, or credit situation, there’s usually a way forward. Our team is here to help you figure out which program fits your goals—and we’ll walk with you every step of the way. Whether that means tapping into down payment assistance or getting you prepped with free credit repair, we’ve got you covered.
Want to know if you qualify for a low or zero down payment loan? Let’s find out together.
– REHL Team Clemente at: clemente@ramonespinozahomeloans.com or Ramon at ramon@ramonespinozahomeloans.com
Se habla Español
