The most common programs available for people looking to purchase a home with no money down are the FHA and VA mortgage loan programs that are administered by the Federal Housing Administration and the Department of Veterans Affairs respectively. The FHA program works by insuring home loans that are made by private lenders. This insurance allows banks and mortgage companies to lend to people who may be been considered “high-risk” in the past due to their debt to income ratio. The easiest way to obtain an FHA loan is to contact lenders directly and ask if they participate in the FHA program. Most banks issuing FHA loans only require that you put at least 3 percent down, and you can use gifts from family and friends to cover that amount. VA loan programs are available for military veterans and their surviving spouses and do not require a down payment.

In addition to the programs that are offered by the federal government, there are a wide variety of assistance programs that are available in the private sector. There are a number of banks, real estate agencies and non-profit organizations that can help you buy a home even if you do not have a lot of money to put down. Many states also have their own affordable housing programs designed to assist people in purchasing a home.

Even though you can buy a home with no money down, it is still a good idea to try to put as much money down as possible. This not only lowers your monthly payment, but it also gives you instant equity in your home. Keep in mind that you will also have to pay private mortgage insurance until you have 20 percent equity in your home, so you should try to put down as much as you can comfortably afford.