What Credit Score Is Needed to Buy a House With No Money Down?

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Buying a house with no money down gets you on the path to homeownership much faster than saving up for a large down payment. After all, the median sale price of a home in the U.S. in late 2025 is just over $433,000; a traditional 20% down payment at that price point would top $86,000!

For the smoothest path to the closing table with a no-money-down loan, you may not need a lot of cash, but you do likely need a credit score of at least 600. Here’s everything you need to know about what credit score is needed to buy a house with no money down.

Can You Buy a House With No Money Down?

It’s possible to buy a house with no money down, but you’ll need to meet the eligibility requirements that come with certain types of mortgage loans, or search for alternative programs that help keep your upfront costs to a minimum. You’ll also need to know what credit score is needed to buy a house with no money down, which can vary based on the type of loan and lender — more details on that below.

Note: SoFi does not offer a zero-down conventional mortgage at this time.

What Is a Zero-Down Mortgage?

Typically, lenders require a down payment on a mortgage, whether you’re buying your first home, taking out a jumbo loan for a luxury property, or getting something in between. The down payment gives you automatic equity in the home, and lowers the lender’s risk since you have a financial investment in the property.

With a zero-down mortgage, also known as a no-down-payment mortgage, you take out a loan for the home’s full purchase price, instead of paying for part of it in cash. As the cost of living in the U.S. increases, this can help you buy a home faster than if you waited to save up a down payment.

How to Buy a House With No Money Down

There are two primary types of zero-down home loans for first-time homebuyers, but you’ll need to meet mortgage preapproval requirements for each.

Get a Zero-Down Home Loan

When you’re looking to buy a house with no money down, government-backed loans are your friend.

VA loans are backed by the U.S. Department of Veterans Affairs and designed specifically for veterans, military members, and surviving spouses. You don’t have to make a down payment and won’t have to pay private mortgage insurance, though there is a one-time funding fee (more on that below). And while the VA doesn’t specify a required credit score, you will need to meet a lender’s requirements for credit and income. Most lenders will be looking for a credit score of 620 for a VA loan, although some may allow a score of 600. The higher the loan amount, the more strict a lender’s credit-score threshold may be.

USDA loans, backed by the U.S. Department of Agriculture, provide 100% financing for properties located in an eligible zone. The credit score needed for a USDA loan will vary based on the lender. A score of 640 or better is a baseline for many lenders, but even those with lower scores may qualify if they provide additional supporting documents for their application. (Note: SoFi does not offer USDA loans, although it does provide VA loans.)

USDA loans aren’t solely for qualified first-time buyers, but these loans come with income limits that may be easier to meet if you’re earlier in your career and home-owning journey. Your income can’t exceed 115% of the area’s median household income. The maximum income level varies depending on family size, since the average monthly expense for one person is less than a family with multiple kids. You can search the USDA’s eligibility site to check eligible property addresses in your area. If you’re exploring how to buy a fixer-upper house with no money, look into VA and USDA renovation loans, also called rehab loans.

Use a Down Payment Assistance Program

Some state and local governments, along with other entities like nonprofits, may offer down payment assistance programs. They’re more common in areas with a high cost of living, so not all of these programs will be available if you live in one of the best affordable places in the U.S. If you combine down payment assistance with mortgage financing, you may be able to purchase with no money down.

Consider Alternative Strategies to Pay for a House With No Money

Though less conventional, it is possible to find alternative home financing options, such as seller financing or a lease-purchase agreement. You will need to enlist the help of a lawyer to pull together an agreement that protects you in these scenarios.

Seller financing involves creating a legal agreement directly with the seller, who serves as your lender. The seller typically needs to either fully own the house or just have a small mortgage balance left in order for this to get approved. Together you will negotiate the terms of the loan, including the length of the term and mortgage rate.

A lease-purchase agreement, also called rent-to-own or lease-to-own, will mean that you start off renting the property and will have the option to buy it after a certain period of time. You may need to pay a fee, and often a sales price is agreed on while you’re renting. A portion of your rent payment usually goes toward the purchase price, serving as a down payment.

Negotiating for closing credits might require you to make a down payment, but an agreement with the seller to cover some of your closing costs will reduce your overall spending. This can be challenging when so much of the U.S. real estate market currently favors sellers, but the strategy may work with fixer-upper properties or if the inspection comes back with significant issues.

Recommended: Buying a Home with Cash vs. a Mortgage

What Credit Score Do You Need for a Zero-Down Mortgage?

As you can see from the information about VA and USDA loans above, it will take a credit score of at least 600 to qualify for a VA loan and a score of 640 to qualify for a USDA loan (although lower scores may qualify for a USDA loan if they have other strong supporting financial credentials). If your credit score needs some love, spend a few months focusing carefully on making every required payment on time. Check your credit reports for errors (they do happen) and request a correction for anything you find. Avoid opening new accounts or closing old ones in the months leading to your loan application.

How Credit Scores Impact Loan Terms

Even if you’re applying for a conventional loan, it’s worthwhile to polish your credit score until it shines. Lenders may reward higher credit scores with lower interest rates. And there are times when the score can impact a lender’s down payment requirements. With an FHA loan backed by the Federal Housing Administration, for example, homebuyers with a credit score of 580 or better can put down 3.5%. But if the would-be homeowner’s score is between 500 and 579, a 10% down payment is required.

First-Time Homebuyer Loans With a Low Down Payment

Not all homebuyers will qualify for a home loan with no down payment, so it’s worth your time to explore these low-down-payment mortgage options as well.

Conventional mortgages Some mortgage lenders allow qualified first-time homebuyers of any income level to obtain a conventional home loan with just 3.5% down. Conventional loans typically require a credit score of at least 620.

Fannie Mae HomeReady and Freddie Mac Home Possible: Low-income first-time homebuyers may qualify for one of these home loans. The minimum down payment is just 3% and lenders may use your rent history to help supplement a lower credit score.

FHA loans: These aren’t designed for first-time homebuyers, and you don’t need to worry about meeting income limits. As noted above, with an FHA loan, you can qualify for a low 3.5% down payment if your credit score is 580 or higher. A score between 500 and 579 will require 10% down.

How to Find the Best No-Down-Payment Mortgage Lenders

Compare multiple lenders early on in the home-buying process. Even if you qualify for a no-down-payment loan, lenders will vary in their interest rates and closing costs, all of which impact how much you pay upfront and over time.

If you’re trying to keep your cash spending as low as possible, look for lenders that offer closing cost credits for eligible borrowers. Usually they come with income limits and first-time homebuyer requirements. But if you qualify, that could mean extra cash in your pocket at closing — just be sure to check for hidden costs in the form of other fees or higher rates.

Additional Costs to Prepare for When Buying With No Money Down

It’s one thing to buy a house with no money down. But it’s quite another to skate through a closing with no cash changing hands. Depending on the loan type you have and your borrower qualifications, you’ll need to have money available to cover the following:

Closing Costs and Fees

Closing costs on a conventional loan typically range from 2% to 5% of the purchase price. Some lenders waive closing costs, but they might charge more in other areas, such as via a higher interest rate. If you qualify for a down payment assistance program, some of these programs come paired with an additional grant or loan — even a 0% interest, forgivable loan — to cover closing costs as well.

Mortgage Insurance Requirements

Buyers who put down less than 20% on a home purchase with a conventional loan are usually required to pay for private mortgage insurance (PMI) until they have 20% equity in their home. PMI typically costs 0.5% to 1% of the loan amount annually. Those who use an FHA loan are charged a mortgage insurance premium of between 0.15% and 0.75% of their loan balance for the life of their loan. These costs are usually included in the monthly mortgage bill, but you’ll need to be prepared to pay them. VA loans do not require mortgage insurance, but they do have a one-time funding fee of 1.25% to 3.3% of the loan amount. Some buyers pay this in cash and others roll it into the loan amount.

Property Taxes and Insurance

Two other costs that will crop up around the time of closing are property taxes and home insurance. Many lenders like to see these expenses paid into an escrow account so that the mortgage servicer can guarantee the tax and insurance bills are paid. The seller is typically responsible for paying the property taxes up to the closing date. But you’ll then need to take over, and some lenders request that the buyer deposit a portion of the tax and insurance bills into the escrow account at the closing.

Pros and Cons of First-Time Homebuyer Loans With Zero Down

Is a zero-down home loan worth it? Weigh the pros and cons before you get started.

Of course, if you don’t like some of the terms associated with your home loan, you can always apply for a mortgage refinance later on.

The Takeaway

Buying a house is expensive, and using a no-down-payment mortgage can help you become a homeowner faster. But you’ll need to meet a number of eligibility requirements, including credit score minimums, income thresholds, and more. And while there are alternative options available, it’s always crucial to compare lenders, rates, and fees to make sure you’re not taking on hidden costs. Ready to explore some options?

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

What credit score is needed to qualify for a zero-down mortgage?

What credit score is required for a no-money-down home loan depends on the program and the lender. VA loans technically don’t have a minimum credit score requirement. Many lenders want to see a 620 or higher, though some may accept a score of 600. For USDA loans, the minimum score required by lenders is usually 640, though strong financials in other areas may help a borrower qualify even if they don’t hit this number.

Are there income limits for zero-down home loans?

VA home loans don’t have any income limits, though the buyer will need to demonstrate a reliable source of income. USDA loans do have income limits, which vary by location. In many counties, borrowers may max out of eligibility if they exceed $112,450 for a one- to four-member household. But in some rural areas, limits are as low as $91,900.

Can I get a no-money-down mortgage with bad credit?

It would be difficult to get a zero-down home loan with a credit score below 600. If your score is between 500 and 579, you could potentially qualify for an FHA loan and then seek out down payment assistance to help minimize the need for cash up front.

What are the hidden costs of zero-down mortgages?

There shouldn’t be any truly hidden costs when it comes to a mortgage — all costs will be disclosed in the days leading up to the closing. But many would-be homeowners who take advantage of a zero-down or low-down-payment loan fail to consider that they may need to pay a funding fee (for a VA loan) or cover the cost of private mortgage insurance on a conventional loan or a mortgage insurance premium on an FHA loan.

Is a no-down-payment mortgage a good idea for first-time buyers?

A no-down-payment loan is often a good solution for first-time homebuyers because it can take a long time to save up for a down payment on a home. Taking advantage of a VA loan or USDA loan can help a homebuyer get into their own home more quickly and begin to build equity. First-time buyers may be particularly well suited to USDA loans which have income limits that might be especially suitable for people early in their career.

What credit score is needed to buy a $300K house?

The credit score needed to buy a $300,000 house depends on the type of mortgage. While VA and USDA loans have a minimum of 600 and 640, respectively, FHA loans allow for scores as low as 500 (with a 10% down payment) or 580 (with a 3.5% down payment).

What credit score do I need to buy a $250,000 house?

The credit score needed to buy a $250,000 house depends on the type of mortgage. The lowest credit score you could have and still secure a mortgage would be 500 (for an FHA loan with a 10% down payment). Expect to need a minimum credit score between 580 and 640 for other loans, depending on which kind you choose.

Can I get an FHA loan with no down payment?

You cannot get an FHA loan with no down payment. The least amount you could put down in this situation is 3.5%. You are allowed to obtain this money via a gift from a friend or relative, but you’ll need to follow specific guidelines if you go this route.

How can I get a 700 credit score in 30 days?

Whether you can get to a 700 credit score in a month depends on what is impacting your score — and how high (or low) a score you currently have. Some quick fixes include paying down high credit card balances, identifying and repairing errors in your credit report, and becoming an authorized user on someone else’s credit card — as long as it has a low balance and isn’t delinquent. But even if you already have a fairly good score, it might be hard to achieve a 700 in this brief window of time.

What builds credit the quickest?

In order to quickly build credit, you need to pay all of your bills on time. Late payment entries can quickly derail your score and stay on your credit report for seven years. You can also lower your credit utilization ratio by paying down credit card balances and asking for higher limits (just don’t charge them up).

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Photo credit: iStock/Worawee Meepian

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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

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