Three loan programs offer true $0 down payment in or near San Antonio: VA loans for eligible Veterans and Military families, USDA loans in qualifying outer Bexar County areas, and FHA combined with down payment assistance that covers the entire 3.5% requirement. The belief that you need $20,000 to $30,000 saved to buy a San Antonio home is outdated. At 620 credit, TSAHC grants cover most of the FHA or conventional down payment, producing an effective $0 out of pocket. This page covers every zero-down and low-down path available in 2026, what each actually costs beyond the down payment, and which programs are accepting applications now.
Zero-down home buying at a glance
Three things buyers ask first about zero-down homes
Can I really buy a home in San Antonio with no money down?
Do I need perfect credit for a zero-down home?
What is the catch with no-money-down programs?
VA zero-down: the strongest no-money-down path in San Antonio
The VA home loan requires exactly $0 down payment at any loan amount up to the conforming limit of $832,750. There is no private mortgage insurance. For JBSA families, BAH at E-5 with dependents of $1,869 per month covers the full VA PITI on a home up to approximately $295,000, which is above the $290,000 SA metro median. The VA loan is available to active-duty Service Members, Veterans with qualifying service, National Guard and Reserve members with qualifying service, and eligible surviving spouses.
The non-obvious issue is the VA funding fee, which is the hidden cost of VA zero-down. First-time VA use at $0 down carries a 2.15% funding fee, which is $6,235 on a $290,000 loan. This fee can be financed into the loan. Even with the fee financed, VA monthly payments are lower than FHA because VA has no monthly mortgage insurance. Disabled Veterans at any rating are exempt from the funding fee entirely, making VA the cheapest mortgage product in America for disabled Veterans. For the full VA breakdown including BAH math and lender overlays, see our VA bad credit guide.
- $0 down, $0 PMI: No down payment and no mortgage insurance at any credit level the lender accepts.
- Funding fee: 2.15% first use, 3.3% subsequent. Financeable. Waived for disabled Veterans.
- JBSA BAH coverage: E-5 w/dep: $1,869 covers ~$295K. E-7 w/dep: $2,082 covers ~$330K.
- Eligibility: Active-duty, Veterans, Guard/Reserve, eligible surviving spouses. COE required.
USDA zero-down: the rural option near San Antonio
USDA Rural Development loans require $0 down payment in designated rural areas. Near San Antonio, eligible areas include parts of outer Bexar County, Atascosa County, Medina County, Wilson County, and Comal County. Central San Antonio, most of the North Side, and established suburban areas do not qualify. The typical credit requirement is 640, though some lenders offer manual underwriting at 620 with compensating factors. USDA also has a household income limit of approximately $103,000 for a 1-4 person household in this area.
The non-obvious issue is the USDA eligibility map and how it interacts with San Antonio’s rapid suburban growth. Areas that were USDA-eligible 5 years ago may have lost eligibility as subdivisions expanded. The USDA updates its eligibility maps periodically, and a property that qualifies today may not qualify in 3 years if the area is reclassified. This does not affect existing USDA loans but does affect buyers shopping in areas on the edge of eligibility. The USDA property eligibility tool on their website lets you check any specific address. Verify before making an offer, not after.
- $0 down: No down payment in eligible rural areas. The upfront guarantee fee (1%) can be financed.
- Eligible areas near SA: Outer Bexar, Atascosa, Medina, Wilson, and parts of Comal counties. Check specific addresses on the USDA property eligibility tool.
- Income limit: ~$103,000 household for 1-4 people near SA. Higher for larger households. USDA is income-capped unlike FHA and VA.
- Insurance: 1% upfront guarantee fee (financeable) + 0.35% annual fee. Lower than FHA’s 0.55% annual MIP.
How FHA plus down payment assistance creates an effective $0 down path
FHA requires 3.5% down, but that 3.5% can come entirely from a DPA grant. At 620, TSAHC Home Sweet Texas provides up to 5% of the loan amount as a grant. On a $290,000 home, TSAHC provides up to $14,500. The FHA down payment is $10,150. The TSAHC grant covers the down and has $4,350 remaining that can apply toward closing costs. The buyer’s effective out-of-pocket down payment is $0. This is not a loophole. It is the explicit design of these programs working together.
The non-obvious issue is the 580-to-620 gap. FHA itself accepts 580, but no active statewide DPA program does. A buyer at 580 who needs zero-down must either find cash for the 3.5% or wait for City HIP to reopen. At 620, the full DPA menu opens and zero-down becomes achievable through TSAHC, SETH, or My First Texas Home. This makes the credit path from 580 to 620 the most valuable 40 points in the entire homebuying process: it is the difference between needing $10,150 cash and needing $0. For the month-by-month credit repair plan, see our credit repair guide.
- TSAHC at 620: Up to 5% grant = $14,500 on $290K. Covers the $10,150 FHA down with money toward closing. Active now.
- SETH at 620: Up to 5% DPA. Alternative to TSAHC with different lender network. Active now.
- City HIP at 580: Up to $30,000 at 0% interest. Covers down + closing entirely. Paused FY 2026. If renewed by City Council, may reopen October 2026.
- The 620 unlock: The 40 points from 580 to 620 are worth approximately $10,000 to $14,000 in tangible DPA grants. That credit work is the highest-value investment a buyer can make.
How to cover closing costs when the down payment is covered
Eliminating the down payment solves the largest upfront cost. Closing costs are the second barrier. On a $290,000 San Antonio home, FHA closing costs run 2% to 4%, or $5,800 to $11,600. The primary tool is seller concessions. FHA allows the seller to contribute up to 6% of the purchase price toward buyer closing costs. In the current SA market, sellers are often willing to contribute 2% to 3%, which covers $5,800 to $8,700 of closing costs. This is negotiated in the purchase contract.
The non-obvious issue is lender credits as a third layer. A lender can offer credits toward closing costs in exchange for a slightly higher interest rate. A buyer who accepts a rate 0.25% higher than the lowest available may receive $2,000 to $3,000 in lender credits. On a $280,000 loan, 0.25% adds roughly $58 per month. Over 5 years, that costs $3,480 but saves $3,000 at closing. For a cash-constrained buyer, the trade-off makes mathematical sense in the short term. Combined with DPA for the down and seller concessions for most closing costs, a buyer at 620 can realistically close with $500 to $1,000 total out of pocket.
- Seller concessions: Up to 6% on FHA, 3% on conventional. Negotiate in the purchase contract. Current SA market often yields 2-3%.
- Lender credits: Trade a slightly higher rate for closing cost credits. Useful for cash-constrained buyers. Model the break-even point.
- City HIP (when active): Up to $30,000 covers down + closing + reserves. The most comprehensive single program.
- Gift funds: FHA allows gift funds from family for down payment and closing costs. Documentation required.
Side-by-side: every zero-down path on a $290,000 San Antonio home
All three zero-down paths produce different total costs. VA is the cheapest on a monthly basis because it has no mortgage insurance. USDA is second with a 0.35% annual fee. FHA + DPA is the most accessible but carries permanent MIP at 0.55%. The table below compares total monthly payments and eligibility requirements on the $290,000 SA metro median.
The non-obvious issue is that FHA + DPA at 620 is available to any buyer regardless of Military service or geographic location, making it the universal zero-down path. VA and USDA each have eligibility restrictions. A non-Veteran buyer in central San Antonio has one zero-down option: FHA + DPA at 620. A Veteran near JBSA has all three. This is why VA is the first program every eligible Veteran should explore, and why reaching 620 is the critical credit threshold for everyone else.
| Factor | VA | USDA | FHA + TSAHC |
|---|---|---|---|
| Down payment | $0 | $0 | $0 (DPA covers 3.5%) |
| Monthly PITI on $290K | ~$1,840 | ~$1,880 | ~$2,650 |
| Mortgage insurance | None | 0.35% annual | 0.55% annual (life) |
| Upfront fee | 2.15% (waived if disabled) | 1% guarantee | 1.75% UFMIP |
| Min credit score | 580-620 (lender) | 640 typical | 620 (for TSAHC DPA) |
| Income cap | None | ~$103K household | TSAHC limits apply |
| Location restriction | None | USDA-eligible areas only | None |
Zero-down is not the same as free
A $0 down payment means you finance 100% of the home price plus any fees rolled into the loan. On a $290,000 home with a financed VA funding fee, the loan balance is $296,235. On FHA with financed UFMIP, the balance is $295,075. The monthly payment reflects the full financed amount. Zero-down also means zero starting equity. A buyer who puts 0% down and the market drops 5% in the first year is underwater, meaning they owe more than the home is worth. In San Antonio’s historically stable market, this risk is lower than in volatile metros, but it exists.
The non-obvious issue is the opportunity cost of NOT using zero-down programs. A buyer who saves $10,150 for a down payment over 12 months pays $20,268 in rent during that period with zero equity. A buyer who uses TSAHC to cover the down payment at month 1 starts building equity immediately while keeping the $10,150 in savings as reserves. Even accounting for the slightly higher loan balance, the zero-down buyer is financially ahead within 18 to 24 months because they started building equity sooner and maintained a financial cushion. Zero-down is not about having nothing. It is about deploying capital efficiently.
- Higher loan balance: 100% financing means higher monthly payments than 5% or 10% down. Budget accordingly.
- Zero starting equity: No equity cushion in year 1. Market fluctuations directly affect your position. SA market is historically stable but not immune.
- The math still works: Rent costs $20K+ per year with $0 equity. Zero-down mortgage costs more monthly but builds equity from month 1.
- Use DPA strategically: Keep your savings as reserves. DPA covers the upfront cost; your savings cover the first-year surprises.
The down payment is no longer the barrier to homeownership in San Antonio
VA at $0 down. USDA at $0 down. FHA + TSAHC DPA at effective $0 down. Seller concessions for closing costs. Lender credits for the remainder. The infrastructure to buy a home in San Antonio without significant upfront cash exists and is currently active for buyers at 620+. For Veterans, the path is available at even lower scores through VA. The down payment, which was historically the largest barrier to homeownership, has been systematically addressed by federal, state, and local programs.
The non-obvious advantage is that these programs are not competitive with each other. They complement each other. A buyer who does not qualify for VA can use USDA. A buyer not in a USDA area uses FHA + TSAHC. A buyer below 620 rebuilds credit for 3 to 6 months to unlock the full menu. The starting point for every zero-down path is the same: a free credit review that tells you which programs you qualify for today and the timeline to those you do not yet qualify for.
