Can I really buy a house with no money down?

Buyer: Okay, I'll be honest. I keep seeing ads that say "buy a home with zero down." Is that real or is it a gimmick?

Ryan: It's real, but it isn't for everybody. If someone tells you zero down is easy and anyone can get it, that's a red flag. There are exactly two programs that are truly zero down: VA and USDA. That's the whole list.

Buyer: Just two?

Ryan: Just two. Everything else either needs a down payment or puts a second loan on top to cover it. That can work great, but it's not the same thing. You want to know which one you're getting before you're under contract.

VA loans

Buyer: Start with VA. Who gets that?

Ryan: Veterans, active-duty service members, National Guard and Reserve members, and eligible surviving spouses. If you have full entitlement, there's no VA loan limit anymore. You can borrow whatever the lender approves based on your income, credit, and the home's value, with nothing down.

Buyer: What's the catch?

Ryan: There's a one-time funding fee. In 2026 it's 2.15% for first-time use with no money down, and 3.30% if you've used the benefit before. You can roll it into the loan. The big perk is that there's no monthly mortgage insurance. On a $300,000 loan, that can save you $150 to $200 a month compared to FHA.

Buyer: That's real money.

Ryan: It is. And veterans who receive VA disability compensation don't pay the funding fee at all. I've closed VA loans where a disabled veteran paid literally $0 at closing once seller concessions covered the rest. That's not a trick. The program is working the way it's supposed to.

USDA loans

Buyer: And USDA? Isn't that for farms?

Ryan: That's the most common misconception. It's not about farms, it's about location and income. The house has to be in an eligible area, and your household has to be at or under the income limit. In 2026 that's $110,650 for a household of one to four people in standard areas, and up to $146,050 in higher-cost areas.

Buyer: How does the cost compare?

Ryan: It's lighter than FHA. There's a 1% upfront guarantee fee, which you can finance, and 0.35% a year after that. FHA charges 0.55% a year.

Buyer: Does Columbus qualify?

Ryan: Parts of greater Columbus do. The city itself mostly doesn't. Run the address through the USDA eligibility map before you fall in love with a house. We've watched buyers lose weeks because they assumed a suburban house would qualify.

VA vs. USDA

Buyer: What if someone qualifies for both?

Chris: Then use VA, almost every time. It has $0 down, no monthly insurance, no loan limit, and usually the lowest rate. That combination is hard to beat.

Buyer: But USDA has that low monthly fee.

Chris: It does, but the 0.35% stays on the loan until you refinance or pay it off. VA has nothing monthly. Over 30 years, that difference adds up. I always tell people to run the numbers both ways first, though. If a veteran has used the benefit before and the funding fee is higher, USDA can sometimes come out closer than you'd think.

Buyer: What about credit scores?

Chris: VA doesn't set a minimum, but most lenders want 580 to 620. For USDA, most lenders want 640 or higher. So if you're between 580 and 639, VA is probably your only true zero-down option.

When you don't qualify for either

Buyer: I'm not a veteran, and the house I want is in the city. Am I out of luck?

Ryan: Not at all. That's where down payment assistance comes in, and Ohio is one of the better states for it. There are about 40 programs with up to $30,000 available, and some are grants you never pay back. You just need a lender who knows how to stack them correctly.

Buyer: Where do I start?

Ryan: OHFA's Your Choice! program is the big one. It gives you 2.5% or 5% of the purchase price toward your down payment or closing costs, paired with an OHFA 30-year fixed loan. It's a forgivable second mortgage, so if you don't sell or refinance for seven years, it goes away. On a $286,000 house, which is about the Columbus median, 5% is around $14,300. That covers a 3.5% FHA down payment with money left over for closing costs.

Buyer: Are there others?

Ryan: A couple worth knowing about:

• Ohio Heroes is for teachers, nurses and other health workers, police, firefighters, EMTs, active military, and veterans. You get a discounted rate plus access to OHFA's down payment help, and it's open to repeat buyers too.

• Grants for Grads is for people who finished a degree within the last 18 months. You get a lower rate plus down payment help. OHFA tightened that timing in 2025, so double-check your dates.

• Columbus ADDI is for buyers inside city limits. It covers up to 6% of the price, capped at $14,999, for households at or under 120% of area median income. It's forgiven after five years as long as you live in the home and don't sell, rent, or transfer it during that time.

Buyer: Anything about ADDI I should know?

Ryan: The city requires at least $500 of your own money in the deal. People show up without it and get tripped up at closing. Plan for that $500.

The closing cost surprise

Buyer: So if I get zero down, I'm paying nothing, right?

Ryan: This is the part nobody warns you about. Zero down doesn't mean zero out of pocket. You still have closing costs. On a $286,000 house in Ohio, that's usually $4,000 to $8,000, depending on the loan, lender fees, title, and prepaids.

Buyer: Oof. How do people cover that?

Ryan: Usually one of three ways:

1. Ask the seller to pay some of your closing costs out of their proceeds.

2. Use a down payment assistance program that covers closing costs too.

3. If you're on VA, roll the funding fee into the loan to keep cash in your pocket.

Buyer: Does anyone actually get close to zero?

Ryan: Last year I worked with a Columbus veteran with a service-connected disability rating. They stacked a VA loan, the funding fee waiver, and an SAH grant for accessibility changes to the home. After seller concessions, they paid under $800 at closing. That's not typical, but it shows what's possible when you know the programs.

Buyer: So the lender just handles all of that?

Ryan: No, and that's the mistake. You need a loan officer who maps out your full cash-to-close number before you make an offer. Finding out three days before closing that you owe $6,000 isn't a paperwork problem. It can kill the deal.

Figuring out your path

Buyer: How do I know which one is right for me?

Ryan: Start with what you qualify for, not what you'd prefer. Go in this order:

1. Do you have VA eligibility? If yes, that's almost always your best bet. Get your Certificate of Eligibility and check your entitlement.

2. Is the house in a USDA-eligible area, and are you under the income limit? If yes, that's your zero-down path. The maps change, so check before you're under contract.

3. Are you a first-time buyer, or under the DPA income limits? Then look at OHFA. One thing to know: OHFA doesn't lend directly, 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.

Buyer: What if I just assume I make too much?

Ryan: Don't count yourself out before someone runs the numbers. We see it all the time: people skip programs they actually qualify for because somebody told them they make too much. The income limits are more flexible than most people think, especially for USDA in the suburbs and OHFA in Franklin County.

The bottom line

Buyer: Give it to me straight. What's your advice?

Chris: Zero down is one of the most misrepresented topics in mortgage. If you see "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: We work with buyers across all of these every week: veterans on VA, suburban buyers on USDA, Columbus first-timers stacking OHFA with ADDI. The ones who close smoothly had the eligibility conversation early, not after they'd already fallen for a house.

Chris: So on the first call, we look at the whole picture: VA status, where the house is, income, credit, and which programs you qualify for. Then we map out your cash-to-close so there are no surprises at the table. It's how we'd want it done if we were the buyer.

Buyer: And if I want to find out where I stand?

Ryan: Call or text us at 614-767-5273. Tell us your situation, whether that's VA, first-time buyer, Ohio Heroes, or none of the above, and we'll tell you exactly which programs you qualify for.