How to Buy a House with No Down Payment in Maryland and Virginia

The single biggest reason people put off buying a home is the down payment. The assumption — often wrong — is that you need 20% saved before you can even start the conversation. In Maryland and Virginia, where median home prices sit well above $400,000, that assumption keeps thousands of qualified buyers renting longer than they need to. The truth is that several loan programs allow you to buy with zero down, and others require as little as 1% from you personally. Here's what's actually available.

VA Loans: 0% Down for Veterans, Active Military, and Surviving Spouses

If you're an eligible veteran, active-duty service member, or surviving spouse of someone who died in service, the VA loan is the most powerful home financing tool available. No down payment. No private mortgage insurance. Rates that consistently come in below conventional pricing. The DMV has one of the highest concentrations of active military and veterans in the country, and VA loans are severely underused — many eligible buyers simply don't know they qualify.

• Minimum service: 90 consecutive days active duty during wartime, 181 days peacetime, or 6 years National Guard or Reserves
• No official minimum credit score — most lenders set a practical floor around 500 to 580
• No down payment required on loans up to the conforming loan limit ($766,550 in most DC metro counties)
• No monthly mortgage insurance — saves $150–$300/month compared to FHA
• Closing costs can be covered by seller concessions up to 4% of the loan amount

The VA does charge a funding fee — a one-time fee rolled into the loan, not paid at closing. It ranges from 1.25% to 3.3% depending on service history, down payment, and whether it's your first VA loan. Veterans with a service-connected disability rating of 10% or higher are exempt from the funding fee entirely.

FHA Loans with Down Payment Assistance

FHA loans have a 3.5% minimum down payment — which on a $350,000 home is $12,250. That's not zero, but it doesn't have to come out of your own savings. Down payment assistance programs in Maryland, Virginia, and DC can cover that amount entirely, and in some cases cover closing costs on top of it. The result: a 0% out-of-pocket FHA purchase.

The most flexible DPA programs in the DMV include Maryland Mortgage Program (MMP) Smart Keys, Virginia Housing DPA grant and second mortgage, DC Home Purchase Assistance Program (HPAP), and private programs like Chenoa Fund (min 640 score) and TRIO (min 620 score). TRIO is particularly notable — it has some of the most flexible guidelines of any DPA program available, accepts Tax ID (ITIN) borrowers, and achieves approval rates in the 90th percentile. It's often the last-resort path for borrowers who've been turned away elsewhere.

USDA Loans: 0% Down for Rural and Suburban Areas in Maryland and Virginia

USDA loans are a zero-down option for properties in eligible rural and suburban areas. Despite the name, "rural" includes a surprisingly wide swath of Maryland and Virginia — parts of Prince George's County, Frederick, Stafford, Spotsylvania, and much of the Eastern Shore all have USDA-eligible areas. If you're buying outside the core DC/Baltimore/NoVa suburbs, it's worth checking eligibility.

• No down payment required
• Minimum credit score: typically 640
• Income limits apply — household income generally cannot exceed 115% of the area median income
• Property must be in a USDA-designated eligible area (check the USDA eligibility map)
• Mortgage insurance is required but at a lower cost than FHA — 1% upfront, 0.35% annually

1% Down Conventional: The HomeReady and Home Possible Programs

Fannie Mae's HomeReady and Freddie Mac's Home Possible programs allow eligible first-time buyers to put down just 1% of the purchase price. The lender then contributes an additional 2% grant — bringing the total down payment to 3% without any loan or repayment obligation on the extra 2%. To qualify, you typically need a minimum 620–680 credit score, income at or below 80% of the area median income, and completion of a homebuyer education course. In high-cost areas like Montgomery County or Arlington, the income limits are generous enough that many middle-income buyers qualify.

Who Qualifies for Low or No Down Payment Mortgages?

You don't have to be a first-time buyer for most of these programs. VA loans are available regardless of whether you've owned a home before. USDA and HomeReady do have first-time or income restrictions, but FHA has no first-time buyer requirement and can be used by anyone purchasing a primary residence. The main factors lenders evaluate are your credit score, your debt-to-income ratio, and the stability of your income — not the number of homes you've owned before.

• VA loans: eligible veterans, active-duty, and surviving spouses — any credit profile considered
• FHA loans: minimum 580 for 3.5% down; 500–579 requires 10% down
• USDA loans: credit scores typically 640+; household income limits apply
• HomeReady / Home Possible: minimum 620–680; income at or below 80% AMI
• TRIO DPA: minimum 620; accepts ITIN borrowers; no first-time buyer requirement on all tiers

What About Closing Costs?

Down payment and closing costs are separate costs, and many buyers confuse them. Closing costs in Maryland and Virginia typically run 2–4% of the loan amount — on a $400,000 purchase, that's $8,000–$16,000. The good news: there are multiple ways to reduce or eliminate closing costs without saving that amount in cash.

• Seller concessions: ask the seller to cover some or all closing costs as part of your offer negotiation. On FHA and VA loans, sellers can contribute up to 3–6% of the purchase price toward closing costs.
• Lender credits: accept a slightly higher interest rate in exchange for the lender covering closing costs — this makes sense if you plan to refinance in a few years as rates drop.
• DPA programs: many down payment assistance programs can also cover closing costs, not just the down payment.
• First-time buyer grants: some state programs (HPAP in DC, Maryland's MMP SmartKeys) include outright grants that reduce your cash-to-close to near zero.

United Mortgage Plus: Finding the Right Program for Your Situation

We work with buyers across every income level in Maryland, Virginia, and DC — from veterans using VA loans to ITIN borrowers who've been turned away by every bank they've tried. Our job is to match you with the program that works best for your specific situation, not push you toward the most common one. We work with 100+ lenders and every DPA program active in the DMV. Our services are free to borrowers — we're compensated by the lender at closing, not by you. If you want to know whether a no-down-payment path exists for your situation, get pre-approved and we'll tell you within 24 hours.

Bottom Line

Not having 20% saved doesn't mean you can't buy. If you've served in the military, 0% down is likely on the table. If you haven't, a combination of FHA and down payment assistance can get you to zero or near-zero out of pocket. The 1% down conventional is a strong option for moderate-income buyers who want to avoid FHA mortgage insurance. None of these are workarounds — they're legitimate programs that millions of buyers use every year. The first step is knowing which one fits you.