Can You Buy a Home With No Money Down in Kansas City?

Table of Contents

1. What Does "No Money Down" Actually Mean?
2. Loan Programs That Require Zero Down Payment
3. What If You Don’t Qualify? Low Down Payment Options
4. Down Payment Assistance in Kansas City
5. Pros and Cons of Buying With No Money Down
6. FAQ: Which Loans Offer 0% Down?
7. Closing Costs: What You Still Need to Cover
8. Free Resources + Next Steps

What Does "No Money Down" Actually Mean?

A no money down loan lets you buy a home without putting any money toward a traditional down payment. That means you finance 100% of the home’s purchase price.

But “no down payment” doesn’t mean zero cost—you’ll still need to budget for closing costs, inspections, and other expenses. And not everyone qualifies.

This guide breaks down what zero-down options exist, who qualifies, and how to navigate the Kansas City market smartly—whether you’re in Missouri or Kansas.

Loan Programs That Require Zero Down Payment

These two loan programs are your best bet for buying a home with no money down:

1. VA Loan (for veterans and active-duty military)

• 0% down
• No private mortgage insurance (PMI)
• Competitive interest rates
• Available through VA-approved lenders
• See full VA Loan Guide →

2. USDA Loan (for eligible rural or suburban areas)

• 0% down
• Income and location restrictions apply
• Must be primary residence
• Requires upfront and annual guarantee fees
• Check USDA eligibility map for KC →

What If You Don’t Qualify? Low Down Payment Options

If VA or USDA aren’t an option, here are some low down payment alternatives:

• FHA Loan: 3.5% down (for credit scores ≥580)
• Conventional 97: Just 3% down for first-time buyers
• HomeReady/Home Possible Loans: Low down payment + flexible income sources
• Gift Funds: Down payment covered by family or friends

And don’t forget...

Down Payment Assistance in Kansas City

DPA programs can help cover your down payment or even your closing costs. These may be grants or second loans with deferred or forgivable terms.

KC Metro Resources:

• Missouri Housing Development Commission (MHDC) – mhdc.com
• Kansas Housing Resources Corporation (KHRC) – kshousingcorp.org
• Local nonprofits like CHES Inc. and Community Housing of Wyandotte County (CHWC)

💡 Pro tip: Some lenders bundle DPA options into your loan—ask before you apply.

Pros and Cons of Buying With No Money Down

FAQ: Which Loans Offer 0% Down?

→ VA Loans: Military-connected borrowers only (no PMI, low rates)

→ USDA Loans: Must meet income limits and be in an eligible area

→ Physician/Professional Loans: Some banks offer zero down to doctors, lawyers, and dentists (ask locally!)

Closing Costs: What You Still Need to Cover

Even if you skip the down payment, you’ll likely pay:

• Loan origination fees
• Title insurance
• Home inspection + appraisal
• Taxes + escrow setup
• Possibly Real Estate Commission

Next Steps

📆 Still unsure? Book a free consult with our KC-based team to walk through your options.