A zero down payment mortgage is a type of mortgage that doesn’t require you to put any money down at closing. Putting no money down and buying a home sounds appealing to the ears. However, it’s quite an uphill task to get a zero down payment mortgage in reality. Banks no longer offer this to a majority of people due to the present financial climate. Many persons won't qualify for this offer, but there are circumstances in which homebuyers can purchase a house with no money down—wondering how to go about this? Let's take a look at how you can qualify for a zero down payment mortgage. 

Nowadays, you can only get it if you go for a government-backed loan. The federal government insures these loans. This implies that if you don't pay your mortgage, the government will be liable for it. So now, let's take a look at these government-backed loans below.

i) USDA Loan: The United States Department of Agriculture backs a USDA loan. The government offers USDA loans in an attempt to promote development in rural and suburban areas. The good thing is that USDA loans tend to have lower fees than other loans. However, there are certain criteria to be met to qualify for this loan. 

- The home you want to purchase must be in a rural or suburban area. You should consider taking a look at the USDA's map of the eligible areas. 

- There are also some financial requirements to be met. The gross income in your household (combined) should be less than or equal to 115% of the county's median income where your home is located. You shouldn't have a debt to income ratio greater than 45%. Your FICO Score should not be less than 640.

ii) VA Loans

An active duty service member, a veteran, the spouse of a deceased veteran, or a member of the National Guard can qualify for a VA loan. The Department of Veterans Affairs backs VA loans. You get to pay 2.15% of your loan as a one-time VA funding fee. This goes in as mortgage insurance. You must meet one of the following requirements to qualify for a VA loan:

- Must have served 181 consecutive days of active service in times of peace

- Must have served 90 consecutive days of active service in times of war

- Must be the spouse of a service member who died from a service-related disability or in the line of duty. 

- Must have served in the National Guard for more than 6 years. 

In addition to one of the above requirements, you ought to have a credit score not less than 640. 

So if you are thinking of buying your new house with a zero down payment, you should meet the criteria to obtain one of these government-backed loans.