You Can Buy a Home With No Money Down, If You Qualify for the Right Program

By Chris Beal, The Stewards · ⏱ 8 min read

TL;DR: VA and USDA are the only true zero-down mortgage programs in 2026. If you're not a veteran and not buying in a USDA-eligible area, you can combine FHA with Ohio down payment assistance, including OHFA's forgivable assistance of up to 5% and Columbus ADDI up to $14,999, to get to $0 out of pocket at closing. What decides it is eligibility, not marketing.

I'll start with something that might sound strange coming from a loan officer. If someone tells you buying a home with no money down is simple, easy, or available to everyone, be careful. That's a red flag, not a sales pitch.

Zero down is real. Two federal programs offer true $0-down financing in 2026, and I've watched them change families' lives. But I've also watched buyers miss an eligibility detail and lose the house they wanted, or worse, end up in the wrong loan entirely. Ryan and I have closed more than 3,700 loans in Central Ohio. Here's how this actually works, without the hype.

Not sure which zero-down program fits your situation? A 10-minute call can save you months of chasing the wrong one. Call or Text — 614-767-5273

The Two Programs That Are Actually Zero Down

There are two true zero-down mortgage programs: VA and USDA. That's the whole list. Every other option either requires a down payment or adds a second loan on top to cover it. Those strategies can work well, but they aren't the same as a zero-down loan, and I want you to understand the difference before you're under contract.

VA loans are for veterans, active-duty service members, National Guard and Reserve members, and eligible surviving spouses. If you have full VA entitlement, there's no VA loan limit. You can borrow as much as the lender approves based on your income, credit, and the property's value, with no down payment. There's also no monthly mortgage insurance, which matters more than people expect. On a $300,000 loan, that can save $150 to $200 a month compared to FHA.

VA loans do carry a one-time funding fee. In 2026, first-use fees run from 1.25% to 2.15% depending on your down payment, and subsequent-use fees with nothing down are 3.30%. Veterans who receive VA disability compensation, and certain surviving spouses, pay no funding fee at all. Ryan has closed VA loans where disabled veterans paid literally $0 at closing once seller concessions covered the remaining costs. That isn't a loophole. It's the program doing what it was built to do, and those closings are some of the most meaningful ones we get to be part of.

USDA loans work differently. Two eligibility tests apply at the same time: the property has to be in an eligible area, and your household income has to be at or below the limit for that area. For 2026, the limit is $110,650 for households of one to four people in standard areas, and up to $146,050 in high-cost areas. The mortgage insurance is lighter than FHA's: a 1% upfront guarantee fee, which you can finance into the loan, and 0.35% per year. FHA charges 0.55% per year.

An honest caveat on USDA: not all of Ohio qualifies. Parts of greater Columbus are eligible, but the city itself generally isn't. Check the address on the USDA property eligibility map before you fall in love with a house. I've sat with buyers who lost weeks, and a lot of emotional energy, because they assumed a suburban home would qualify without checking first. That conversation is never fun, and it's completely avoidable.

USDA vs. VA: Which Is Better?

I get this question constantly, and my answer is simple: if you have VA eligibility, use it. You get $0 down, no monthly insurance, no loan limit, and usually the lowest rate. That combination is hard to beat. USDA is an excellent option for buyers without military service who are purchasing in a qualifying area.

Where people get confused is that both programs get you to $0 down, but the ongoing costs differ. USDA's 0.35% annual fee stays on your loan until you refinance or pay it off. VA has no monthly insurance at all, just the one-time funding fee, which you can roll into the loan. Over a 30-year mortgage, that difference compounds.

When a buyer has both VA eligibility and a USDA-eligible property, I always tell them the same thing: run the numbers both ways before you commit. USDA rates are often competitive, and VA's lack of monthly insurance usually wins over the long run. But there are exceptions, especially for veterans who have used their benefit before and face a higher funding fee.

Credit requirements differ too. The VA doesn't set an official minimum, but most lenders want 580 to 620. For USDA, most lenders want 640 or higher. If your score is between 580 and 639, VA is likely your only true zero-down path.

Free Down Payment Match Skip the search. A Steward finds the programs you actually qualify for and gets back to you within 24 hours. Find My Match →

What If You Don't Qualify for VA or USDA?

Then we look at down payment assistance, and Ohio is one of the better states for it. There are about 40 down payment assistance programs here, offering up to $30,000, including several grants that never have to be repaid. You aren't limited to one or two options. You do need a lender who knows how to combine them correctly with your primary loan.

OHFA Your Choice! Down Payment Assistance is the flagship program. It provides 2.5% or 5% of the purchase price toward your down payment or closing costs, paired with an OHFA 30-year fixed mortgage. The assistance is a forgivable second mortgage that's forgiven after seven years, as long as you don't sell or refinance during that time. On a $286,000 home, roughly the Columbus median right now, the 5% option is about $14,300. That covers a 3.5% FHA down payment with money left over for closing costs.

Ohio Heroes is close to my heart because it rewards the people who show up for our communities every day. It gives teachers, nurses and other healthcare workers, police officers, firefighters, EMTs, active-duty military, and veterans a discounted interest rate plus access to OHFA down payment assistance. It's open to first-time and repeat buyers, and the rate discount keeps paying off over the life of the loan.

Grants for Grads, also through OHFA, pairs a discounted interest rate with down payment assistance for recent graduates. You need to have completed a degree from an accredited institution within 18 months of reserving your loan. OHFA tightened that window in 2025, so confirm your timing carefully.

Columbus ADDI is one that buyers inside Columbus city limits often overlook. It provides up to 6% of the purchase price, capped at $14,999, for households at or below 120% of area median income. It's a five-year deferred, forgivable loan: you have to live in the home for five years, and you can't sell, rent, or transfer it during that time, or the funds must be repaid. The city also requires a minimum $500 contribution from your own funds. That $500 is real, and buyers who show up without it get tripped up at closing.

The Closing Cost Problem Nobody Warns You About

Here's the part I wish more people heard early: even a true zero-down loan doesn't mean zero out of pocket. You can get to no money down through VA, USDA, or FHA combined with assistance that covers the 3.5% minimum. You'll still need money for closing costs unless seller concessions or a DPA program cover those too.

On a $286,000 purchase in Ohio, closing costs typically run $4,000 to $8,000, depending on the loan type, lender fees, title, and prepaid items. You can't ignore that number. Buyers usually handle it one of three ways:

• Asking for seller concessions, so the seller pays some of your closing costs out of their proceeds.

• Adding a DPA program that explicitly covers closing costs.

• Financing the VA funding fee into the loan to keep cash in your pocket.

Last year, Ryan worked with a Columbus veteran who had a service-connected disability rating. That buyer stacked three benefits: a VA loan with zero down and no mortgage insurance, the funding fee waiver, and an SAH grant for accessibility adaptations. After seller concessions, their total out of pocket at closing was under $800. That's not typical, but it shows what's possible when someone takes the time to know the programs.

The most common mistake I see is assuming "zero down" means the lender will take care of everything. It doesn't. You need a loan officer who maps out your full cash-to-close number before you make an offer, not after. A surprise $6,000 bill three days before closing isn't just a paperwork problem. It can end the deal, and it can break a family's heart.

How to Know Which Path Is Right for You

Start with eligibility, not preference. The best zero-down option is the one you actually qualify for. Work through these questions in order:

1. Do you have VA eligibility? If yes, that's almost always your best option. Get your Certificate of Eligibility and confirm your entitlement. If you receive VA disability compensation at any rating, you're exempt from the funding fee, which can save $4,300 to $10,000 on a typical purchase.

2. Is the property in a USDA-eligible area, and are you within the income limit? If yes, that's your zero-down path. Eligible areas can change, so confirm before going under contract.

3. Are you a first-time buyer, or within the income limits for down payment assistance? Ohio's OHFA programs cover a wide range of incomes. OHFA doesn't lend directly. It offers below-market first mortgages bundled with down payment help through a network of approved local lenders, so your lender has to be OHFA-approved.

4. Are you buying inside Columbus city limits? Add ADDI to the conversation. In some setups it stacks with OHFA and can cover most or all of your closing costs.

One thing I see far too often: buyers ruling themselves out of programs they actually qualify for because someone told them they "make too much." The income limits are more flexible than most people think, especially for USDA in suburban areas and OHFA programs in Franklin County. Please don't disqualify yourself before a lender runs your actual numbers.

The CFPB's loan options guide is a solid starting point for understanding the federal government-backed programs. For Ohio-specific income limits and program availability, the Ohio Housing Finance Agency's site at myohiohome.org is the authoritative source.

The Stewards' Recommendation

Every pin on this map is a Central Ohio family we helped close.

I'll be direct: zero-down lending is one of the most misrepresented topics in the mortgage world. You'll find pages promising "no money down, no credit check, everyone qualifies." That isn't a program. At best it's a setup for disappointment, and at worst it's a predatory loan.

Ryan and I work with buyers across the whole zero-down spectrum every week: veterans using their VA benefits, suburban buyers qualifying for USDA, and Columbus first-timers stacking OHFA with ADDI. The ones who get to closing smoothly are the ones who had the eligibility conversation early, not after they were under contract on a house they loved.

So in that first call, we look at your full picture: VA status, property location, income, credit, and which programs you actually qualify for. Then we map out your cash-to-close number so nothing surprises you at the closing table. That's not a sales pitch. It's how I'd want it done for my own family.

If you're in Columbus or anywhere in Central Ohio and want to know exactly which zero-down path fits you, we'd love to help.

Tell us your situation, whether that's VA, first-time buyer, Ohio Heroes, or none of the above, and we'll map out which programs you actually qualify for. Call or Text — 614-767-5273

Frequently Asked Questions

Can I really buy a house with no money down in 2026? Yes, but only through VA or USDA loans, which are the only true zero-down mortgage programs. If you're not a veteran and not buying in a USDA-eligible area, you can combine an FHA loan with Ohio down payment assistance to reach $0 out of pocket, but that's a layered structure, not a single zero-down product. Closing costs are separate, so you'll need seller concessions or a DPA program that covers those too.

What credit score do I need for a zero-down mortgage? For VA loans, most lenders require a minimum of 580 to 620, even though the VA itself sets no floor. USDA loans typically require a 640 score for automated approval. FHA loans paired with Ohio DPA programs generally need at least 620 to 640, depending on the program. If your score is under 620, VA is your most realistic zero-down option.

Is USDA or VA better for a zero-down purchase? VA wins if you're eligible. It has no monthly mortgage insurance, no loan limit, and usually the lowest rates. USDA is excellent for buyers without military service who are purchasing in qualifying rural or suburban areas. If you qualify for both, run the numbers. VA's lack of monthly insurance typically saves more over 30 years than USDA's competitive rate.

What Ohio down payment assistance programs are available in 2026? The main programs run through the Ohio Housing Finance Agency (OHFA). Your Choice! Down Payment Assistance provides 2.5% or 5% of the purchase price, forgivable after seven years. Grants for Grads is for recent degree holders, and Ohio Heroes is for teachers, first responders, veterans, and healthcare workers. Buyers inside Columbus city limits may also qualify for ADDI, which provides up to $14,999 toward down payment and closing costs, forgivable after five years. Visit myohiohome.org for current income limits by county.

Do I have to be a first-time buyer to use zero-down programs? Not for VA or USDA. Both are available to repeat buyers. OHFA's Your Choice! DPA and Ohio Heroes programs are also open to repeat buyers in many cases. Columbus ADDI and Grants for Grads do require first-time buyer status, meaning no home ownership in the prior three years. Always confirm current rules with an OHFA-approved lender.

What's the catch with zero-down mortgages? There are a few honest ones:

• You start with no equity, so if home values dip, you could temporarily owe more than the home is worth.

• USDA has geographic and income limits that rule out many Columbus-area buyers.

• VA has a funding fee (2.15% for first use with no money down, though you can finance it) unless you receive VA disability compensation.

• DPA programs often have five- to seven-year recapture windows, so selling early can trigger repayment.

None of these are dealbreakers. They're tradeoffs to understand upfront. For more answers, visit our FAQ at stewards.loan/faq.

Can a disabled veteran really pay zero at closing? In the right scenario, yes. Veterans who receive VA disability compensation are exempt from the funding fee entirely, which saves $4,300 to $10,000 on a typical purchase. Combine that with $0 down and seller concessions covering closing costs, and total out of pocket can reach $0. It takes structuring the offer correctly, but it's a real outcome, not a marketing claim.

Zero-down programs have real eligibility rules, and they change. Get your situation mapped out now so you know exactly which path is open to you. Call or Text — 614-767-5273