The Spokane mortgage guides
Zero Down
Updated: August 2026
Zero Down Home Loans in Washington.Every Real $0 Option
There are exactly two true zero-down mortgages, one near-zero stack, and a lot of marketing pretending otherwise. Here's the full honest list.
Real numbers in about a minute — no credit pull, no spam.
or call (509) 230-3765
Zero down home loans exist in Washington in exactly two true forms — VA loans for those who served, and USDA loans in eligible areas — plus one near-zero stack that pairs FHA with state assistance. Everything on this page is a real program with real terms; nothing here is a teaser.
The honest inventory
VA loans — zero down, anywhere in the state. For eligible veterans, active duty, and some surviving spouses: no down payment, no monthly mortgage insurance, and often the strongest pricing of any program. With Fairchild AFB west of town, this is the most-used zero-down door in the Spokane market by a wide margin. The requirements guide covers who qualifies, including the 2020 National Guard expansion most Guard members haven't heard about.
USDA loans — zero down, if the map says yes. The only federal zero-down program that doesn't require military service. The address decides: Deer Park, Cheney, Medical Lake, and most unincorporated Spokane County qualify; the city of Spokane, Spokane Valley, and Liberty Lake don't. Income limits apply — $119,850 for a household of up to four in 2026, higher than most people assume — and the annual fee runs cheaper than FHA's insurance.
The near-zero stack — FHA plus assistance. Not technically $0, but the cash-at-closing math lands close: FHA's 3.5% down covered by a WSHFC Home Advantage second at up to 5% of the loan amount, with the remainder pointed at closing costs and a seller credit doing the rest. The second is a deferred loan, not a gift — it repays when you sell or refinance — which is exactly the kind of fine print this page exists to say out loud.
Which door fits which buyer
The decision tree is shorter than it looks:
- Served, or serving? VA first, almost always. Nothing else combines zero down with zero monthly mortgage insurance.
- Buying outside the urban core? Check the USDA map before assuming anything — I verify an address in about a minute.
- Neither applies? The FHA-plus-assistance stack, priced honestly against putting 3-5% down conventionally, because the stack isn't automatically cheaper once the second's repayment and FHA's insurance enter the math.
That third comparison is where I earn the conversation: sometimes the stack wins, sometimes a small down payment with cheaper insurance wins, and the answer comes from your numbers — credit score, household income, target area — not from a preference for the word "zero."
What zero down actually costs
No down payment means the loan is bigger and the equity cushion starts at nothing — appreciation has to build it for you. In a market that's been climbing, that trade has paid Spokane buyers well; the median's run from the low $300s to $425,000 made waiting-to-save the expensive choice. But it's still a trade, and the payment is where it shows: financing the down payment raises the monthly cost, softened most by VA (no mortgage insurance), moderately by USDA (0.35% annual fee), least by the FHA stack (MIP plus the second).
One more zero-down door for builders: VA construction extends the benefit to ground-up builds, and paid-off land can stand in as the down payment on a construction loan — zero additional cash, which for acreage buyers around Deer Park and Elk is the version that matters.
How I run the numbers with you
Tell me three things — service history, target area, rough credit picture — and I'll tell you which zero-down doors are actually open and show you the monthly payment behind each one, next to the small-down-payment alternative. The right answer is the one your budget services comfortably, and getting to it takes about fifteen minutes. Call, text, or start above.
On the record
Frequently asked questions.
What home loans are zero down in Washington?
Two real ones. VA loans: zero down for eligible veterans, active duty, and some surviving spouses, anywhere in the state. USDA loans: zero down for anyone under the income limits buying in an eligible area — which around Spokane includes Deer Park, Cheney, Medical Lake, and most unincorporated county land. Everything else marketed as 'zero down' is either one of these two, an assistance stack that gets close, or fine print worth reading twice.
How do first-time buyers get to zero down without VA or USDA?
The stack: an FHA loan at 3.5% down paired with WSHFC down payment assistance. Home Advantage DPA lends up to 5% of the first mortgage as a deferred second — enough to cover the 3.5% down entirely, with room toward closing costs. Add a negotiated seller credit and plenty of Spokane first-time buyers close with little beyond earnest money out of pocket. It's not literally $0 and it isn't free — the second gets repaid when you sell or refinance — but the cash-at-closing number lands near zero.
Is zero down a bad idea?
It's a tool with real physics. No down payment means borrowing more, a bigger payment, and starting with no equity cushion, so a soft market year one leaves you temporarily underwater on paper. The counterweight: waiting years to save 20% in a market where the median moved from the low $300s to $425,000 cost far more than zero-down buyers gave up. The honest test is the monthly payment against your budget, not the down payment against a rule of thumb.
What credit score do zero-down loans require?
VA has no official minimum, with most lenders comfortable around 580-620. USDA runs smoothest at 640 and up through its automated system. The assistance-stack route follows FHA's floor of 580. So realistically, a 640 score opens every zero-down door in Washington, and a 580 opens most of them — the full program-by-program map is in the credit score guide.
Do zero-down loans cost more per month?
Yes, mechanically: you're financing the down payment you didn't make. VA softens it most — no monthly mortgage insurance at all, which is why a VA zero-down payment often beats a conventional 5%-down payment on the same house. USDA charges a modest 0.35% annual fee, cheaper than FHA's insurance. The stack carries FHA's MIP plus eventual repayment of the assistance second. Which structure wins is a three-way payment comparison I run on your actual numbers, not a slogan.
Can I buy land or build with zero down?
VA construction loans put eligible veterans at zero down on a ground-up build, one closing, builder registered with the VA. USDA has a single-close construction option in eligible areas too, though fewer lenders offer it. Bare land on its own is different — land loans typically want 20-35% down — but paid-off land counts as equity toward a construction loan, which is its own version of zero additional cash down.
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