Buying A House With No Savings -

Buying with zero equity means you are "underwater" the moment you sign, as selling costs (agent commissions) would exceed your home's value. FHA Down Payment Grants for 2026

Conventional "first-time buyer" loans only require 3% down. buying a house with no savings

The biggest trap for buyers with no savings isn't the down payment; it's the , which typically run 2% to 5% of the purchase price. Even with a 0% down loan, you could still owe $10,000+ on a $300,000 home at the signing table. Buying with zero equity means you are "underwater"

If you don't qualify for VA or USDA, you can often reach "zero out of pocket" by stacking low-down-payment loans with grants: Even with a 0% down loan, you could

Exclusive to veterans, active-duty service members, and eligible surviving spouses. These loans require no down payment and typically lack private mortgage insurance (PMI), though they do carry a one-time "funding fee" (usually 2.15% for first use) that can often be rolled into the loan.

Some lenders will pay your closing costs in exchange for a slightly higher interest rate. 4. The Psychological & Financial Cost

You can negotiate for the seller to pay your closing costs. For instance, you might offer $310,000 for a $300,000 house on the condition the seller pays $10,000 toward your fees.