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ZERO DOWN

Zero-down mortgage programs in Texas.

Three real paths to closing on a Texas primary residence with no down payment — for veterans, eligible-area buyers, and DPA-qualified first-time buyers.

Three paths to zero down

The three programs that close at 0% down in Texas.

Two of the three are true 0% down (VA, USDA). The third is a DPA-stacked structure that produces an effectively-zero cash-to-close. Eligibility is the gating factor.

VA Loan

For veterans, active-duty service members, and qualifying spouses

True 0% down with no PMI. Funded by VA entitlement — the most generous zero-down structure available. Carries a one-time funding fee (waived for service-connected disabilities).

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USDA Loan

For buyers in USDA-eligible Texas areas (more areas qualify than people think)

0% down with annual fee structure (lower than FHA MIP). Property must sit inside the USDA Eligibility Map and household income must be at or below the county limit.

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DPA-Stacked Conventional / FHA

For non-veteran buyers outside USDA-eligible areas

TSAHC or TDHCA DPA stacked with Conventional 3% Down or FHA 3.5% Down can effectively cover the down payment, producing a near-zero cash-to-close.

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What zero down really means

Zero down at the down-payment line — but not zero out-of-pocket.

Zero down means no down payment is required at closing. It does not mean zero closing costs. Texas closing costs typically run 2–4% of the purchase price (lender fees, title, appraisal, prepaid escrows). Some of this can be offset by seller credits or by financing the funding fee (VA) or guarantee fee (USDA) into the loan, but plan for a few thousand dollars of out-of-pocket on a typical zero-down close — unless additional DPA covers closing costs too.

We always model the full cash-to-close before recommending a zero-down structure. If a "zero down" pitch is not transparent about closing costs and ongoing carry, that is a red flag.

Frequently asked

Zero-down questions, answered.

Is a true zero-down mortgage available in Texas?
Yes — VA loans (for veterans) and USDA loans (in eligible areas) are true 0% down structures. There is no down payment required. For buyers who do not qualify for VA or USDA, DPA-stacked conventional or FHA loans can produce an effectively-zero cash-to-close, though the structure is technically a low-down loan with the down payment funded by a separate DPA grant or second lien.
Are zero-down mortgages risky?
They start with no equity — your loan-to-value ratio is 100% on day one, sometimes higher when fees are financed in. If home values fall, you can be underwater quickly. The structures are not riskier in their own right (VA and USDA both have lower historical default rates than conventional in many studies) but the borrower equity cushion is zero, which limits flexibility. We model the actual monthly payment and the equity-build trajectory before recommending a zero-down structure.
Do I have to pay PMI on a zero-down loan?
It depends on the program. VA does NOT require PMI — instead, VA charges a one-time funding fee (typically 1.4–3.6% of the loan amount, financed into the loan, and waived for service-connected disabilities). USDA does NOT require PMI — instead, USDA charges a 1.0% upfront guarantee fee plus a 0.35% annual fee (built into the monthly payment). FHA loans (when stacked with DPA for an effectively-zero down) DO carry MIP for the life of the loan in most cases. Conventional 3% Down with DPA carries PMI which is removable at 80% LTV.
Can I use a zero-down loan on any home in Texas?
No. VA loans require a VA-eligible property (most single-family Texas homes qualify; some condos require a VA-approved condo project). USDA loans require the property to be inside the USDA Eligibility Map for the county — many DFW outer-suburb addresses qualify, but not central DFW or Austin / Houston metro cores. Conventional and FHA (with or without DPA) work on most standard Texas homes.
How long does it take to close a zero-down loan?
VA and FHA close in roughly the same 30–35 day window as conventional. USDA runs slightly longer (35–45 days) because of the USDA conditional commitment step — the file goes to USDA Rural Development before clear-to-close. DPA-stacked structures take roughly the same time as the underlying first mortgage since the DPA application runs in parallel.

See if you qualify for a zero-down structure.

We screen VA, USDA, and DPA-stacked options against your file and tell you the actual cash-to-close. Soft-pull pre-approval in 24 hours.

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