PATRICK’S QUICK ANSWER
Zero down is real for the right buyer in the right program. VA offers 100% financing for veterans with no monthly mortgage insurance, USDA does the same in eligible Hill Country areas, and San Antonio down payment assistance can shrink your cash-to-close on FHA or conventional. No money down still means cash for closing costs and prepaids, so plan for that.
Buying with no money down is real, and for the right buyer in the right program it is a legitimate path, especially with VA for veterans, USDA in eligible areas, and San Antonio down payment assistance programs. But 'no money down' does not mean 'no cash at all,' and understanding the difference keeps you out of trouble. Here is the honest version of how zero-down buying works in 2026.
I will walk through VA and USDA 100% financing with the JBSA context, the down payment assistance programs that cover your down payment, what cash you still need for closing costs, and the myths that get buyers into trouble. Every figure is an estimate.
VA Loans: 100% Financing for Veterans and Military
For eligible veterans, active duty, and in many cases reservists and National Guard members, the VA loan offers 100% financing with no down payment and no mortgage insurance, which is a huge monthly advantage. The VA sets no minimum credit score of its own, though most lenders overlay around 580 to 620. San Antonio's military footprint means many of my VA buyers are moving to or from JBSA, and the VA loan is often the single best financing tool they will ever use.
USDA Loans: 100% Financing in Eligible Areas
The USDA Rural Development loan offers 100% financing in eligible areas, many of which sit just outside the city in places like Bulverde, Spring Branch, and the Hill Country. It has income limits, typically wants a score around 640, and carries a modest upfront and annual fee that replaces mortgage insurance. If you are willing to look in eligible areas, the USDA loan is one of the few true zero-down options left for buyers who are not veterans.
Down Payment Assistance Programs
If neither VA nor USDA fits, San Antonio and Texas run down payment assistance programs, including HIP and state programs through TSAHC and TDHCA, that cover part or all of your down payment. These often attach to FHA or conventional loans and come with income limits, credit minimums, and sometimes a second lien or a repayment term. On a conventional loan assisted conventionally, the combined picture can get you to closing with a very small down payment of your own.
What You Still Need Cash For
Even with 100% financing, you still bring money for closing costs, the earnest money deposit, an option fee, and often reserves the lender wants to see left after closing. VA even leaves room for the seller to cover many costs, and USDA has some flexibility, but buyer cash for prepaids and title still appears. The right way to think about it: zero down removes the down payment, and seller concessions plus assistance can shrink closing costs, but plan for several thousand dollars in genuine cash to close.
The Myths About No Money Down
Two myths get buyers in trouble. First, that zero-down means a bad loan: in fact VA and USDA are excellent, government-backed programs with strong terms. Second, that you will walk in with zero dollars: that is not realistic, because closing costs, earnest money, and reserves exist even with a 100% loan. The truth is that these programs remove the largest barrier, the down payment, while a realistic cash plan covers the rest.
Combining Programs for the Lowest Cash to Close
The best outcomes come from stacking the right program with the right assistance. A VA borrower can pair 100% financing with seller concessions, DPA where allowed, and a modest closing cost fund. A conventional buyer can pair a DPA program with seller concessions to cover most of the rest. The rules differ by program and lender overlay, so we map your exact stack before you make an offer, not after.
Nerd Alert
The actual numbers and math behind this topic, the way I run them on the channel.
Let me compare three paths on a $295,000 home. VA at 100% financing means a $0 down payment, and with the seller covering an allowed share of costs, a realistic cash to close might be roughly $3,000 to $6,000 for prepaids, title, and earnest money. USDA at 100% in an eligible area with a modest upfront fee might bring you near $4,000 to $7,000 cash to close depending on concessions. A conventional buyer using a down payment assistance program that covers the down payment and part of costs might land in a similar range before other reserves.
These are estimates for illustration based on commonly published program terms, not quotes. The real number depends on your program, the seller concessions you negotiate, your closing date, and your lender's overlays, and your VA funding fee or USDA fees, where applicable, add to the picture.
- VA's 100% financing removes a down payment of roughly $10,325 (3.5%) or $20,650 (7%) that an FHA or conventional buyer would need on $295,000.
- USDA's modest annual fee is generally far cheaper than conventional PMI for the same zero-down profile.
- A down payment assistance program covering 3% to 5% on $295,000 is $8,850 to $14,750 that you do not bring yourself.
For a San Antonio buyer the honest zero-down reality is that VA, USDA, and down payment assistance can remove the down payment, which is the biggest barrier, while you still plan cash for closing costs, earnest money, and reserves. Pick the right program, stack the right assistance, and the cash to close shrinks to a reasonable, planable number. That is exactly the kind of program map I run on your side.
These are estimates for illustration, not quotes. Figures use publicly available rates and program terms at the time of writing, and your actual rate, fees, and payment depend on your credit file, loan program, and closing date.
