No. As of October 2026, neither Fannie Mae nor Freddie Mac offers a conventional mortgage with 0% down. The lowest down payment on a conventional purchase loan is 3%. What does exist is a conventional loan where that 3% can come entirely from other people's money: gifts, grants and down payment assistance. That is why some lenders advertise "zero down" conventional deals.

This question usually comes up when you compare loan types. VA and USDA loans are true 0% down products, and conventional loans are not. The answer settles two things for you. First, whether you need cash of your own at closing. Second, whether you should be pre-approved for a conventional loan or a government-backed one.

Nothing new has changed this. The Federal Housing Finance Agency's news releases for September and October 2026 announce no zero-down or 100% financing program for either company.

Why the floor sits at 3%

A conventional purchase loan on a one-unit primary residence can finance at most 97% of the price. The remaining 3% is the down payment, and no program goes below it. On a $350,000 home, 3% comes to $10,500.

Four products sit at that floor, in two pairs:

  • Conventional 97 (Fannie Mae) and HomeOne (Freddie Mac). There is no income cap. At least one borrower generally must be a first-time buyer. Conventional 97 is fixed-rate only, and most lenders want a 620 credit score.
  • HomeReady (Fannie Mae) and Home Possible (Freddie Mac). Your income must be at or below 80% of the area median income. HomeReady allows a debt-to-income ratio up to 50% and offers discounted mortgage insurance. Industry sources put Home Possible at a 660 minimum score and a 43% maximum debt-to-income ratio.

The 3% is fixed, but the source of the money is flexible. HomeReady accepts gifts, grants, employer assistance and Community Seconds for the down payment. A Community Second is a second loan from a nonprofit, employer or local government, secured against the home. Freddie Mac does not require any of your own cash toward the 3% on a single-unit Home Possible purchase. Fannie Mae's HFA Preferred loan, sold only through state and local housing finance agencies, also has no own-funds minimum for one-unit homes.

One limit is worth knowing. Fannie Mae's HomeReady matrix explicitly allows $0 of your own money when the loan-to-value is 80% or less. Above 80%, a 3% minimum contribution applies in certain scenarios. Ask your lender whether yours is one of them before you count on assistance covering everything.

Where you will run into it

Freddie Mac's BorrowSmart paired with Home Possible. BorrowSmart is available only alongside a Home Possible loan. It pays $1,250 on moderate-income purchases and $2,500 for buyers at or below 50% of area median income. The money can go toward the down payment, closing costs or a permanent rate buydown. Industry sources give this example:

A $200,000 Home Possible purchase

The buyer needs $9,000 to close. Three outside sources are stacked against that amount.

Cash needed to close$9,000
Seller creditminus $1,000
Giftminus $5,000
BorrowSmart assistanceminus $2,500
Left for the buyer to pay$500

The loan still finances 97% of the price. The buyer's own cash drops to $500, not $0. That gap is typical: "zero down" offers often turn out to be "almost zero out of pocket."

State housing agency loans. When a state agency advertises a no-down-payment conventional loan, it is usually HFA Preferred with the agency's own assistance layered on top. Income limits come from the agency, not from Fannie Mae, so they vary from state to state.

Family gifts on a Conventional 97. The whole down payment can be a gift from a relative by blood or by marriage. Because Conventional 97 has no income cap, this is the route for buyers who earn too much for HomeReady or Home Possible. MortgageResearch.com counts more than 1,600 assistance programs nationwide that can be layered onto these loans. Some of them are easy for first-time buyers to miss.

Zero down and zero out of pocket are different things

A true zero-down loan finances 100% of the price. A conventional loan with assistance still finances 97%, and someone else pays the other 3%. If that someone is a Community Second, you leave closing with two loans on the house, not one.

VA or USDA (true 0% down) Conventional plus assistance
Share of price financed 100% 97%, with the 3% paid by gifts, grants or a second loan
Who qualifies VA: veterans, service members, surviving spouses. USDA: eligible areas, income up to 115% of area median HomeReady and Home Possible: income up to 80% of area median. Conventional 97: no income cap
Ongoing cost VA: no monthly mortgage insurance; 2.15% funding fee for first-time zero-down use, usually financed. USDA: 1% upfront plus 0.35% a year Private mortgage insurance, which cancels automatically at 78% loan-to-value

A zero-down conventional loan is also not coming soon. The Urban Institute's May 2026 proposal for zero-down lending targets FHA loans, not Fannie Mae or Freddie Mac. It would need an act of Congress to take effect.

Which programs can cover that last 3%?

The pillar guide lays out every route to buying with little or nothing down, including the grants and employer programs that fill the gap.

See the zero down options

What to ask before you apply

If you qualify for VA or USDA, price those loans first. They are the only real 0% down options. If you don't qualify, plan on a conventional loan at 3% and work out who pays that 3%.

Take these questions to any lender:

  • Do I fit HomeReady or Home Possible on income, or only Conventional 97?
  • At my loan-to-value, can all of the 3% come from gifts or assistance, or must some come from me?
  • Is any of the assistance a second loan, and what do I owe on it?
  • What will I still need for closing costs once the down payment is covered?

The credit score and debt rules for conventional loans decide which of these loans you can get. Check them before you shop.

One caution from financial advisor Thomas Brock, quoted by The Mortgage Reports: buyers who learn that a large down payment isn't required sometimes start looking at more expensive homes. A smaller down payment does not make a bigger monthly payment any easier to afford. The useful number is the loan amount a lender will approve for your income, so get that figure before you set your price range.