Updated November 2026. Loan rules, rates and market figures checked this month.
To buy a house with no money down, use a VA loan (0% down for eligible veterans) or a USDA loan (0% down in eligible rural areas), or pair an FHA loan with down payment help. FHA needs 3.5% down with a 580 score. On NAR’s September 2026 median of $417,500, that’s about $14,600. You’ll still need some cash for closing.
Want money back toward those costs? Beycome’s buyer program has no upfront fee and can credit part of the buyer-agent commission to you at closing, on homes listed by other agents.
Jump to: 🏠 Loan options · 🪜 Fix your credit · 💲 Find the cash · 🤝 Other routes · 🏠 House rich, cash poor · ❓ FAQ
Key takeaways
- FHA: 3.5% down with a credit score of 580 or more. Between 500 and 579, you need 10% down. Below 500, FHA says no.
- VA and USDA loans can need no down payment at all, if you qualify.
- On NAR’s September 2026 median price of $417,500, 3.5% down is about $14,600.
- You can pull your credit reports free every week at AnnualCreditReport.com, says the CFPB.
Can you really buy a house when you have no money and bad credit?
Yes, but “no money” rarely means zero dollars. It usually means no big down payment. Lenders still look at your income, your debts and your credit history. And someone has to pay for the appraisal, the inspection and the closing. Our FAQ covers how much down payment you need.
The good news: government-backed loans were built for buyers like you. First-time buyers made up 31% of home sales in September 2026, according to NAR. Many of them used one of the loans below.
| Loan | Minimum down | Credit rule | Who it’s for |
|---|---|---|---|
| FHA | 3.5% (10% if score is 500–579) | No FHA loan below 500 | Most buyers, 1–4 unit homes you live in |
| VA | None, if the price isn’t above appraised value | Set by the lender | Eligible veterans, service members, some surviving spouses |
| USDA Section 502 | None (100% financing) | Lender reviews your history | Moderate incomes in eligible rural areas |
| Conventional | Varies by program | Usually stricter | Buyers with steadier credit |
FHA loans
FHA loans are the usual path with bruised credit. HUD says the down payment can be as low as 3.5% of the price. The rule turns on your “decision” score. With three scores, it’s the middle one. At 580 or above, you get the full financing. From 500 to 579, the loan can’t top 90% of the value. Lenders can set stricter limits, so shop around. Try our FHA mortgage calculator to see the payment.
VA loans
If you served, start here. The VA says its purchase loans often need no down payment, as long as the price isn’t higher than the appraised value. You’ll need a Certificate of Eligibility. A funding fee may apply.
USDA loans
USDA’s Section 502 home loan offers 100% financing in eligible rural areas. Your household income can’t be more than 115% of the area median, and the home must be your main home. Many towns that don’t feel rural still qualify, so check the address on USDA’s map.
HUD, the U.S. Department of Housing and Urban Development (HUD), also lists local homebuying programs and housing counselors by state. A counselor can review your budget for free or at low cost.
How do you raise your credit before you apply?
A few months of work can move you from one loan tier to the next. Here’s what helps most.
- Pull all three reports free at AnnualCreditReport.com. The CFPB says you can do it once a week.
- Dispute errors in writing. A wrong late payment or a debt that isn’t yours can cost you points.
- Pay every bill on time from now on. Recent history counts the most.
- Pay credit cards down well below their limits.
- Don’t open new cards or loans right before you apply.
The Consumer Financial Protection Bureau has free tools to dispute errors and compare loan offers. For a step-by-step plan, read our guide on fixing your credit to buy a home. If you’re starting from scratch, see buying a house with a bad credit score.
Where can the down payment and closing money come from?
Low down payment doesn’t mean low cash. Here’s what usually fills the gap.
Down payment assistance
States, counties and cities run grants and second loans for down payments. Some are forgiven if you stay a set number of years. Rules and income caps vary. Your state housing finance agency is the place to start. The Federal Housing Finance Agency (FHFA), which oversees Fannie Mae and Freddie Mac, publishes data and guides on these loan programs.
Gifts from family
Most loan programs accept gift money from relatives. The lender will want a signed gift letter and a paper trail of the transfer.
Seller credits
You can ask the seller to pay part of your closing costs. Each loan program caps how much. In a slow market, sellers are more open to it. NAR says the typical home took 33 days to sell in September 2026, and higher inventory gives buyers more room to ask.
A buyer’s agent credit
Some buyer programs give you part of the agent fee back. With Beycome’s buyer program, you pay no upfront fee. When the seller offers buyer-agent compensation, we keep 1% of the price (minimum $1,499) and credit the rest to you at closing. On a $400,000 home with 3% offered, that’s $8,000 toward your costs. If the seller offers less than our minimum, you cover the gap at closing.
That 3% is only an example. Commissions are not set by law or by NAR rules, and they’re fully negotiable. Sellers choose whether to offer buyer-agent compensation, and how much. Since August 17, 2024, those offers can’t be shown on the MLS. Your lender must approve the credit, and some states limit or ban rebates. Here’s how buyer’s agent commission works.
What are other ways to buy a home without a loan?
If no lender will approve you yet, there are other routes. Each costs more or carries more risk than a standard loan, so read every line. The same goes if you buy land with bad credit, where owner financing is common.
- Seller financing. The owner acts as the bank. You pay them monthly. Terms are whatever you both sign, so have a real estate attorney draft them.
- Rent-to-own. You rent with an option to buy later. You can lose the option fee if you don’t buy.
- A co-signer. A parent or partner with strong credit signs the loan with you and is on the hook if you miss payments.
- Hard money or private loans. They look at the property more than your score, but rates and fees are high and terms are short.
Seller financing is most common on homes sold by owner. Our guide to buying a house from an owner shows how those deals work. If the seller wants cash only, see buying a cash-only house without cash.
Sell smarter
List your home on the MLS from $99
A flat fee instead of a percentage, and $0 to Beycome at closing. You stay in control of your sale.
Sell your home →Buy smarter
Get up to 2% back at closing
On homes listed by other agents, Beycome credits you up to 2% of the price at closing (1% kept, $1,499 minimum; not on FSBO homes or homes listed by Beycome sellers).
Buy a home →Our advice: if the only yes you can get is a high-cost loan, wait six to twelve months and rebuild your credit. With the average 30-year rate at 7.24% on October 29, 2026, per Freddie Mac, a better score can save you real money every month.
Can you buy a house with cash and no credit?
Yes. A cash purchase has no lender, so nobody pulls your credit score. You still pay for title, recording and taxes, and the seller will ask for proof of funds. Our guide to buying a house with cash walks through each step.
What’s the best financing option if you’re house rich but cash poor?
If you already own a home with equity, that equity is your down payment. The question is how to reach it before you buy. Here are the usual options, side by side.
| Option | How it works | Watch out for |
|---|---|---|
| Sell first, then buy | Your sale proceeds fund the next down payment | You may need a short rental between homes |
| Home equity line of credit (HELOC) | Borrow against your current home, usually at a variable rate | Two payments until you sell |
| Bridge loan | A short-term loan backed by the home you’re selling | Higher rates and fees |
| Cash-out refinance | Replace your mortgage with a bigger one and take the difference | A new rate on your whole balance |
| Reverse mortgage | For homeowners 62 and older, per the CFPB | Fees, and the loan grows over time |
The CFPB explains how a HELOC works, and its page on reverse mortgages covers the age rule and costs.
How do you buy and sell a house with no money?
Sell the home you own and keep more of the equity, then use it to buy. The listing fee is the biggest cost you control. On the $417,500 median, a 3% listing fee would be $12,525. A flat fee MLS listing starts at $99, with $0 due to Beycome at closing. That 3% is only an example: commissions are not set by law or NAR rules and are negotiable.
To see what you’d walk away with, use our home sale proceeds calculator guide. For timing the two deals, read how to buy a new home while selling yours.
Frequently asked questions
Can you buy a house with cash without credit?
Yes. With no loan, there’s no credit check. You’ll need proof of funds, and you still pay closing costs like title and recording fees.
What’s the best financing option if I’m house rich but cash poor?
It depends on your timing and age. Selling first, a HELOC, a bridge loan and a cash-out refinance are the usual choices. Homeowners 62 and older can also look at a reverse mortgage.
How can I buy a house with no money?
Use a VA or USDA loan if you qualify, since both can need no down payment. Or pair an FHA loan at 3.5% down with down payment help, a family gift or seller credits for closing costs.
What credit score do I need for an FHA loan?
At least 500. From 500 to 579 you need 10% down. At 580 or above, you can put down 3.5%. Lenders may ask for more.
Can you buy a house with no money down and bad credit?
Sometimes. A VA or USDA loan has no down payment, and the lender judges your credit history. With FHA, a low score raises the down payment to 10%.
What are other ways to buy a home without a bank loan?
Seller financing, rent-to-own, a co-signer or a private lender. Each costs more or carries more risk, so get a lawyer to read the terms.
Do I still pay closing costs with a no-down-payment loan?
Yes. You pay for things like the appraisal, title and loan fees. Seller credits, gifts, assistance programs or a buyer’s agent credit can cover some of them.
How do I check my credit for free?
Go to AnnualCreditReport.com. The CFPB says you can get a free report from Equifax, Experian and TransUnion once a week.
Reviewed by Beycome Brokerage Realty LLC, a licensed real estate brokerage. Licenses are listed at beycome.com/faq/how-to/are-you-a-licensed-broker/.
Loan rules read October 22, 2026 on HUD, VA and USDA pages; mortgage rate from Freddie Mac, read November 1, 2026. Market figures are NAR’s September 2026 existing-home sales report. Lenders can set stricter requirements than program minimums.
Buyer program: no upfront fee; Beycome keeps 1% of the price with a $1,499 minimum and credits the rest. The credit depends on the compensation the seller offers, your state’s rules on rebates and your lender’s approval. It applies to homes listed by other agents; it can’t apply where no buyer-agent commission is offered, like most homes sold by owner, or on homes listed by Beycome sellers.
Beycome Basic is $99 in most states. “$0 at closing” means no Beycome fee at closing; other closing costs still apply.
Commissions are not set by law or by NAR rules and are fully negotiable. Sellers choose whether to offer any compensation to a buyer’s agent, and how much; since August 17, 2024, those offers can’t be shown on the MLS.
This is general information, not legal, credit or financial advice.
Sources
- HUD FHA Resource Center, minimum credit score rules.
- HUD, FHA loans: down payment as low as 3.5%.
- VA, VA-backed purchase loan.
- USDA Rural Development, Section 502 single family home loan program.
- CFPB, how to get free credit reports.
- NAR, existing-home sales, September 2026.
- NAR, what the settlement means for home buyers and sellers.
- Freddie Mac, Primary Mortgage Market Survey, October 29, 2026.
- CFPB, what is a HELOC.
- CFPB, what is a reverse mortgage.
- Beycome, buyer program, October 2026.
Disclosure & Disclaimer
Beycome provides real estate services through affiliated licensed brokerages and has a commercial interest in the services and business models discussed on this blog. Content reflects Beycome’s perspective and may promote our services; it should not be treated as independent or neutral reporting.
Articles are provided for general informational and educational purposes only, not as financial, tax, legal, or investment advice or a recommendation for your particular situation. Reading this blog does not create a brokerage, advisory, or other professional relationship.
Information, opinions, pricing, service descriptions, and comparisons reflect the sources and information available when an article was published or last updated and may change. Although we aim for accuracy, we do not guarantee that all content is complete, current, or applicable to your circumstances. Laws, market conditions, and service availability vary by location. Examples and estimated savings are illustrative, depend on stated assumptions, and do not guarantee individual results.
Verify relevant information directly and consult qualified professionals before making decisions. Beycome services are subject to applicable agreements, eligibility requirements, and state-specific terms.
