How to Buy a House With No Money Down

Many buyers ask if it’s possible to buy a house with no money down especially in California, where prices feel intimidating.

The short answer is: sometimes, yes. But it depends on your situation, loan options, and expectations.

In this guide, I’ll explain what “no money down” really means, common paths buyers explore, and what to watch out for so you don’t make decisions based on misinformation.

What “No Money Down” Really Means

In most cases, buying with no money down means:

•              No down payment

•              Still responsible for closing costs

•              Still qualifying for a loan

It does not usually mean buying with zero cash required at all.

Common Ways Buyers Reduce or Eliminate a Down Payment

Some buyers qualify through:

•              VA loans (for eligible military members)

•              Certain down payment assistance programs

•              Gifted funds from family

•              Seller credits in specific situations

Each option has rules, limits, and tradeoffs.

The Tradeoffs to Understand

Buying with little or no money down can mean:

•              Higher monthly payments

•              Mortgage insurance

•              Stricter qualification guidelines

This doesn’t make it wrong/topic-of-life decision, it just means it should be intentional.

When Buying With Little Cash Can Make Sense

For buyers with strong income but limited savings, getting into the market sooner can sometimes make sense especially if the goal is long-term ownership rather than short-term appreciation.

Many buyers comparing no-money-down options are also weighing whether buying makes sense at all. I explain how to think about that decision in my guide on whether it’s better to buy or rent in San Luis Obispo County right now.

FAQs

Is it really possible to buy a house with no money down?
In some cases, yes. Depending on loan type and eligibility.

Do I still need money for closing costs?
Usually yes, though credits may help offset them.

Are no-money-down loans risky?
They can be if the monthly payment isn’t comfortable.

Who benefits most from low down payment options?
Buyers with stable income but limited savings.

Amber Johnson, Founder
Pillar Real Estate
805.835.3425
[email protected]
1345 Park St. Paso Robles, CA 93446
DRE# 01925434