The down payment is one of the biggest obstacles to homeownership — and adding closing costs on top can make the goal feel out of reach. But if you’re otherwise ready to own, the right loan or assistance program may be all you need. Here’s how zero-down financing works in Texas, and how to find out if you qualify.
Can you buy a house with no money down?
Yes — you can. While most mortgages require a down payment, several programs let qualified Texas buyers finance the full purchase price. The key is knowing which programs exist and whether you meet their requirements.
Zero-down mortgage options
USDA Loans
The U.S. Department of Agriculture created a housing program to support rural development. The USDA rural development loan is a zero-down mortgage for low-to-moderate income families, and its mortgage insurance premium (MIP) is much lower than most other mortgages available. Check the USDA eligibility page to see whether the area where you want to buy qualifies.
Navy Federal Credit Union
The Navy Federal Credit Union, the nation’s largest, offers 100% financing to qualified members. Eligibility is open to members of the military, some civilian employees of the military and U.S. Department of Defense, and their families.
VA Loans
Military families and veterans may qualify for a VA (Veterans Affairs) loan, which offers 100% financing. In place since World War II, the program guarantees loans up to a set limit, requires no down payment, and lets the mortgage insurance be wrapped into the loan.
Texas Grant Programs
The Texas State Affordable Housing Corporation provides down payment assistance grants for teachers, police officers, corrections officers, firefighters, EMS personnel, and veterans, as well as low- and moderate-income households — often covering most or all of the required down payment. These grants are available to first-time buyers, repeat buyers, and existing homeowners alike.
The bottom line
A zero-down mortgage is a great option if you have limited cash but are otherwise well-qualified to buy. If you plan to stay put for a few years, you’re ready to take on the upkeep of a home, and you have steady income, a zero-down-payment loan could put homeownership within reach years sooner than you thought.
Want to know which option fits your situation? See if you qualify for 100% financing and a Texas Ally expert will walk you through the programs available to you.
Loan programs, rates, and eligibility requirements vary by lender and change over time. This article is general information, not financial or lending advice — please talk with a licensed lender about your specific situation.
