“No money down” real estate sounds like a late-night infomercial. But legitimate low-and-no-down-payment strategies do exist — and they work when applied correctly.
FHA and VA Loans
FHA allows 3.5% down with a 580+ credit score — the lowest conventional down payment for owner-occupied properties. VA loans are genuinely $0 down for eligible calculate your monthly mortgage payment veterans and active-duty servicemembers, with no PMI. These are powerful tools for house hackers estimate your closing costs upfront and primary residence buyers.
Seller Financing
When a motivat analyze your rental property cash flowed seller agrees to carry the financing, you negotiate the down payment as part of the deal. Some sellers accept 5-10% down, or even zero down with higher interest rate or balloon payment. Estate sales, retiring landlords, and motivated sellers are most open to this structure.
Partnerships
If you have knowledge but not capital, partner with someone who has capital but not time or expertise. Structure: you find and manage the deal, they fund the down payment, split cash flow and equity 50/50. This is how many experienced investors scaled their first portfolios.
USDA and HUD Programs
USDA loans offer 0% down for primary residences in designated rural and suburban areas (broader than you’d expect — check USDA’s eligibility map). Income limits apply. HUD homes (foreclosures) can sometimes be purchased with specialized programs at discounts.
Low-down strategies work — but they require careful cash flow analysis since your monthly obligations will be higher without a large down payment.