I don’t have a down payment to buy a house. Is 100% financing still a thing? 🏡

One of the most common things I hear from potential homebuyers especially first-time buyers is:

“I’d love to buy a home, but I don’t have a down payment.”

Totally understandable. Saving up tens of thousands of dollars while also dealing with rising rent, everyday bills, and just… life, isn’t exactly easy.

So, the big question is
Is 100% financing still a thing?

The answer: Yes. It still exists. And it’s more accessible than most people think.

Let me break it down for you.

The 100% Financing Option Most Buyers Don’t Know About

A client came to me recently, feeling a little discouraged.

They had a solid job, great credit, and were preapproved for a mortgage but the one thing holding them back was the down payment.

They asked, “Isn’t there any way to buy a home without putting 5%, 10%, or even 20% down?”

That’s when I introduced them to a 100% financing option that splits the loan into two parts  no down payment required.

Let’s walk through a real example using a $400,000 home:

• First mortgage (97%) = $388,000
• Second mortgage (3%) = $12,000
• That adds up to 100% financing  the entire purchase price covered.

You read that right: no down payment needed.

Monthly Payment Breakdown:

Naturally, the next question was:
“Okay, so what would my monthly payment look like?”

Here’s the breakdown for the first mortgage:

• Principal & Interest: $2,581
• Estimated Taxes: $500
• Home Insurance: $300
• Mortgage Insurance: $325

That brings the total monthly payment to about $3,706.

Now, here’s the best part:

The second loan  the one covering the last 3% of the purchase comes with:

✅ 0% interest
✅ $0 monthly payment

That’s right. You’re not required to make payments on that second portion, and it doesn’t accrue interest.

This setup makes homeownership possible for buyers who are financially stable but just haven’t had the chance to save up for a large down payment.

What You Do Need to Cover

While you don’t need a down payment with this structure, you do still need to account for closing costs.

Closing costs typically range from 2% to 4% of the home’s purchase price. In this example, that would be somewhere between $8,000–$16,000.

But here’s a strategy:
Many buyers negotiate a seller credit to help cover these expenses especially in markets where homes are sitting a little longer and sellers are more flexible.

So yes, it’s entirely possible to walk into a home with little to no money out of pocket.

Is 100% Financing Right for You?

Like any loan product, this isn’t a one-size-fits-all solution.

It’s a great option for buyers who have strong income and credit but don’t have liquid cash for a down payment. That said, your eligibility will depend on a few factors, like:

• Income and debt-to-income ratio
• Credit score
• Property location (some programs are specific to certain areas)

That’s where working with a mortgage expert (👋 hi, that’s me) can make a big difference. I’ll walk you through your options, compare loan types, and make sure you understand the pros and cons of each one.

Final Thoughts

If you’ve been holding off on homeownership because of the down payment it might be time to take a second look.

Yes, 100% financing is real. Yes, it’s available in 2025. And yes, with the right guidance, it could be your ticket to finally buying a home of your own.

Want to explore your options or see if you qualify?
Reach out today and let's chat. A quick conversation could be the start of something big and it won't cost you a dime to start.

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Deep Dive: Down Payment & Assistance Programs

These Q&A posts cover the most common questions we hear about down payments in Wisconsin.

• How much do I actually need for a down payment?
• Can I use gift money for a down payment in Wisconsin?
• What is the WHEDA loan program and how do I qualify?
• What is a USDA loan and do I qualify in Wisconsin?
• Dane County Down Payment Assistance Programs for 2026
• Can my buyer use seller credits to cover closing costs?