09/23/2025
$0 Down Doesn’t Mean $0 Out of Pocket..
Yes.. 100% financing programs exist (VA, USDA, certain grants). But even with those, you’ll still need cash ready. Here’s where most buyers get surprised:
1. Down Payment
You don’t need 20%. Many programs require 3%–3.5%, and some are truly zero down. But “zero down” only solves the down payment, not the rest.
2. Upfront Costs
Before closing, expect to pay for:
- Inspection
- Appraisal
- Earnest money deposit
That’s usually $2K–$3K out of pocket, due before you ever get the keys.
3. Closing Costs (the big one)
Plan on 2%–4% of the purchase price.
On a $400K home, that’s $8K–$16K.
Pro Tip: Negotiate for the seller to cover them with a seller credit
**Some programs will cover both down payment and closing costs, but usually at the expense of a higher interest rate.**
Takeaway:
You don’t need 20% down. You don’t need to be wealthy.
But you do need to understand the real costs of buying a home so you can plan, negotiate, and avoid last-minute surprises!!
