What loan program can I use to get a primary residence with 0% down payment, not PMI?
Two programs deliver true 100% LTV financing on a primary residence purchase with no PMI/MI requirement: the VA loan and the USDA Guaranteed Rural Housing loan (SFHGLP). A third option — the JMAC FHA 100% CLTV combo — achieves zero out-of-pocket down payment via a second lien but still carries FHA MIP and does not satisfy the "no MI" requirement.
Option 1: VA Loan
The VA loan is the cleanest zero-down, no-MI option available — 100% LTV on a primary residence purchase with no monthly mortgage insurance.
Lender matrix evidence:
- Nations Direct Mortgage — VA Standard:
Per the VA Standard Matrix for purchase transactions:
| Min FICO | Max Total Loan Amount | Max LTV |
|---|---|---|
| 680 | $2,500,000 | 100% |
| 600 | $1,500,000 | 100% |
| 550 | $832,750 | 100% |
"Maximum LTV/CLTV and base loan amount may be exceeded by the amount of Funding Fee only."
- Mega Capital — VA Fixed Rate: "Full / Primary Residence / 1-4 Units / Min FICO 620 / Max LTV/CLTV: 100/100%"
- JMAC Lending — VA Standard & High Balance: Eligible borrowers are defined as "Eligible veterans (or a surviving spouse) with available and sufficient entitlement for a 25% guaranty." No MI is referenced as a requirement for purchase transactions.
Key conditions:
- Borrower eligibility: Eligible veterans, active duty service members, and qualifying surviving spouses only. Entitlement must be available.
- VA Funding Fee (not PMI): No monthly MI, but a one-time Funding Fee applies unless exempt. Per Nations Direct: zero-down purchase = 2.15% (first use) / 3.30% (subsequent use) — may be financed into the loan.
- Non-occupant co-borrowers: Per JMAC Lending, "Non-Occupant Co-Borrower: Not permitted."
- Occupancy: The veteran must certify they intend to personally occupy the property as their home.
- Property types: SFRs, PUDs, VA-approved condos, 2-4 units, and manufactured homes (lender-specific restrictions apply).
Option 2: USDA Guaranteed Rural Housing Loan (SFHGLP)
100% LTV purchase on a primary residence in an eligible rural area with no PMI required.
Lender matrix evidence — Forward Lending USDA SFHGLP:
| Occupancy | Property Type | Purpose | Min FICO | Max LTV/CLTV |
|---|---|---|---|---|
| Primary Residence | 1-unit SFR/PUD/Condo | Purchase | 600 | 100% |
USDA Select tier also available:
| Occupancy | Property Type | Purpose | Min FICO | Max LTV/CLTV | Min Loan |
|---|---|---|---|---|---|
| Primary Residence | 1-unit SFR/PUD/Condo | Purchase & R/T Refi | 680 | 100% | $250,000 |
Key conditions:
- Property location: Must be in a USDA-eligible rural area — hard eligibility requirement.
- Income limits: Borrower income must fall within USDA limits for the subject area. "USDA income limits may be more restrictive than CalHFA's income limits. The more restrictive limit applies."
- Occupancy / co-borrowers: All borrowers must personally occupy the property. "Loans with co-signers and non-occupant co-borrowers are not permitted."
- USDA Guarantee Fee (not PMI): Upfront guarantee fee plus an annual fee collected monthly in escrow — distinct from private MI but represents a program cost.
- DPA restriction: Per Forward Lending, "Down Payment assistance products may not be combined with USDA products."
- Borrower citizenship: U.S. citizens and permanent residents eligible. "Non-permanent residents are temporarily ineligible."
Option 3: JMAC FHA 100% CLTV Combo — Zero Down, But MI Still Applies
This program achieves zero out-of-pocket down payment through a second lien structure but does not eliminate MI — FHA MIP (upfront 1.75% + annual monthly premium) is still required.
Per JMAC Lending's FHA CLTV Combined/Combo Guidelines: "JMAC FHA 100% CLTV Financing... The FHA first lien at 96.5% and a second lien up to 5% to cover down payment and/or closing costs. There is no income restrictions cap and borrowers do not need to be first-time home buyers to qualify."
| Transaction | DPA Option | LTV | CLTV | Min FICO | Max DTI |
|---|---|---|---|---|---|
| Purchase | 3.5% Fully Amortized | 96.5% | 100% | 600 (AUS) | Per AUS |
| Purchase | 3.5% Forgivable After 3 Years | 96.5% | 100% | 660 (Manual) | 45% |
Note: Include this path only if the borrower is ineligible for VA and USDA and the "no MI" requirement can be waived. Zero down, not zero MI.
Program Comparison
| Program | 0% Down | No PMI/MI | Borrower Restriction | Property Restriction |
|---|---|---|---|---|
| VA Loan | Yes | Yes (funding fee applies) | Veterans / active duty / surviving spouses only | VA-approved property required; no geographic limit |
| USDA SFHGLP | Yes | Yes (guarantee fee applies) | Income limits apply | USDA-eligible rural areas only |
| JMAC FHA 100% CLTV | Yes (via 2nd lien) | No — FHA MIP required | None | Primary residence only |
Decision guidance: VA is the strongest fit for qualifying veterans — 100% LTV, no monthly MI, up to $2.5M (Nations Direct, FICO 680+). For non-VA-eligible borrowers with a rural subject property, USDA is the next best path for true zero-down, no-MI financing.
