Buying A House With No Savings May 2026

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.

Some lenders will pay your closing costs in exchange for a slightly higher interest rate. 4. The Psychological & Financial Cost 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.

Designed for "rural" areas—which actually includes 97% of U.S. land mass , encompassing many suburban fringes. These are income-restricted (usually capped at 115% of the area median income) and offer 100% financing for "modest" dwellings. 2. Bridging the Gap: Assistance & Grants Many state and local Down Payment Assistance (DPA)

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

Conventional "first-time buyer" loans only require 3% down. Some lenders will pay your closing costs in

Some banks, such as Bank of America , provide grants up to $17,500 that do not require repayment to cover both down payments and closing costs. 3. The "Hidden" Zero: Closing Costs