Actualité - Buying a House Without a Down Payment: Is It Possible in 2025?

Article updated on 16/10/2026

Buying property without a down payment is possible in certain cases. Under what conditions? Is it the best option? Capifrance explains everything you need to know on the subject. Your local real estate advisor will guide and support you in buying your house, apartment, plot of land or commercial premises.

In summary

Buying property without a down payment remains possible in specific cases, but banks most often require a down payment of at least 5 to 10%, in a context of high interest rates (3.54% in September 2024 according to the Observatoire Crédit Logement).
First-time buyers, particularly young professionals with good prospects, and buy-to-let investors able to demonstrate the profitability of their project are the best-placed profiles, but these loans carry more risk for the bank and come with higher interest rates.
To borrow without a down payment, you need a solid borrower profile, a well-defined project, additional guarantees (a guarantee from a relative, a mortgage) and possibly the support of a broker; in the event of refusal, you should comply with the maximum debt-to-income ratio of 35% recommended by the HCSF.
Solutions exist to finance a purchase without a down payment: assisted loans (PTZ, Action Logement loan, PAS), a family loan, a gift or real estate crowdfunding, but the article reminds readers that the most reasonable option remains to save in order to build up a down payment.

Update of Friday, October 16:
According to the Observatoire Crédit Logement/CSA, the average mortgage interest rate stood at 3.26% in June 2026, for an average term of 251 months. The HCSF rules remain unchanged (maximum debt-to-income ratio of 35%, term of 25 years) and, until 31 December 2026, a family gift exempt from tax up to €100,000 per donor can be used as a down payment for the purchase of a new-build property or one bought off-plan (VEFA) intended as a main residence. Source: Observatoire Crédit Logement/CSA.

Can you still buy property without a down payment?

A personal down payment of at least 5 to 10% is, more than ever, an undeniable asset in obtaining a mortgage offer. The current context is characterised by high interest rates: across all terms, a mortgage was offered at 3.54% in September 2024 according to the Observatoire Crédit Logement1.
Harder to negotiate, a mortgage without a down payment, with 100% financing, nevertheless remains possible in specific cases. An application that is very strong in other respects can help convince a financial institution. Nevertheless, a bank will most often ask for an initial down payment to finance a property purchase.

Who can buy property without a down payment?

Can you buy your first property in 2025 without an initial down payment? Certain buyer profiles are better placed to benefit from this flexibility on the part of their banker.

First-time buyers, in particular young professionals with good career prospects. Banks may consider the absence of a down payment with a little more leniency, especially if the buyer is eligible for an assisted loan or if solid guarantees can be obtained from family assets.
Buy-to-let investors can also find suitable financing solutions if they demonstrate the profitability of their project and provide convincing guarantees.

In all cases, mortgages without a down payment represent a more significant risk for a lending institution. The interest rates applied are higher.

Good to know: borrowing 100% or 110% for a property purchase?

Don't have savings for a down payment? In theory, banks can finance the entirety of your property project, or even a little more to cover notary fees. This type of loan, known as a "110% loan", is however even harder to obtain. Building up savings for a down payment or finding this amount through a third-party solution is still the most reasonable and credible choice in the face of your banker's requirements.

How can you borrow without a personal down payment?

Do you want to buy your main residence, or invest in new-build property? There are several strategies to strengthen your financing application for the purchase of a house or an apartment.

A solid borrower profile

Banks attach great importance to job stability. Rigorous management of your finances, demonstrated by your bank statements, is also a key factor (which should nevertheless result in building up a down payment beforehand).

A well-defined property project

The more realistic your investment, the more likely you are to convince the lender. Define precisely the type of property you are looking for, its geographic location, and the amount of financing required. Since you have no down payment, your acquisition project must be perfectly clear and coherent.

Additional guarantees

To compensate for the lack of a down payment, you can offer, for example, a guarantee from a close relative or a mortgage on another property. Family guarantees, in particular other accounts and family assets held with your bank, can make all the difference. This will allow your bank to guard against a possible repayment default and will work in your favour when applying for a home loan.

The expertise of a mortgage broker

A mortgage broker is a professional accustomed to negotiating the most complex borrower files. Thanks to their market expertise, they can help you find the best financing terms, as well as optimise your file.

What to do if your home loan application without a down payment is refused?

Each bank has its own assessment criteria for granting a home loan. To improve your chances next time, focus on the following points:

Respect the maximum debt-to-income ratio of 35% recommended by the HCSF2. If your project takes you above this ceiling, it may not be suited to your financial means. To reduce this ratio, consider repaying some of your current loans or reducing the amount of financing requested.
Sound and rigorous management of your finances, shown by your bank statements, obviously reassures lenders. Monitor your accounts carefully over the coming months to avoid any risk of overdraft.
Find out about the support schemes for becoming a homeowner. The zero-interest loan (prêt à taux zéro), the Action Logement loan or other similar mechanisms can supplement, or even replace, your personal contribution.
Finally, the most sensible option will be to save and postpone your property purchase project, for as long as it takes to build up your down payment for buying a house or apartment. Be patient and go back to your banker once this amount has been gathered in your accounts.

Solutions for financing a purchase without a down payment

Buying a house without a down payment is therefore not a choice to favour, but several financing solutions exist to support buyers in this situation, notably through public schemes and innovative financing alternatives.

Subsidised loans and government schemes

Zero-Interest Loan (Prêt à Taux Zéro, PTZ)

The PTZ is a flagship scheme for first-time buyers. This loan, with no interest or application fees, is intended to finance part of the purchase of a primary residence. To qualify, the buyer must meet specific income conditions and invest in a new property, or an older property requiring renovation work, under precise conditions. One of the main advantages of the PTZ lies in its deferred repayment, which reduces the financial burden during the first years. This scheme is particularly attractive for households wishing to start their property journey. Nevertheless, many conditions must be met to obtain a PTZ, notably depending on the geographic zone and the type of property to be purchased. The continuation or extension of this scheme in the future is regularly under discussion at national level.

Action Logement loan

Reserved for private-sector employees, the Action Logement loan (or "1% logement") facilitates access to home ownership at a preferential rate. It can be used to supplement a main financing, up to a defined ceiling. Available subject to conditions, this loan is ideal for reducing the total cost of the transaction.

Social Home Ownership Loan (Prêt d'Accession Sociale, PAS)

The PAS is aimed at modest-income households wishing to become homeowners. It makes it possible to finance the purchase of a primary residence while benefiting from a reduced rate and limited fees. In addition, it opens access to the APL (Aide Personnalisée au Logement, or personalised housing assistance), further reducing monthly costs.

Financing alternatives for a property purchase without an initial down payment

Family loan or loan between relatives

Family financing is a flexible option for buyers without a down payment whose relatives can step in to make up for the lack of an initial contribution. However, it is essential to formalise this type of loan with a written document to avoid any tax-related or family misunderstandings. Another very common case is that of parents or grandparents wishing to help their children become homeowners by making a monetary gift for a property purchase.

Real estate crowdfunding

Crowdfunding offers an innovative alternative. This mechanism makes it possible to raise funds from several contributors, often via online platforms. Less common, it appeals to a certain number of investors and buyers wishing to explore collaborative solutions, but the reliability of the scheme remains to be proven.

The drawbacks of buying property without a down payment

Buying property without a down payment may seem an attractive solution at first glance, but it is essential to understand the financial risks and the additional requirements imposed by banks.

Higher total cost of credit

One of the main drawbacks of buying without a down payment is the increase in the overall cost of the loan. By financing the entire price of the property, the bank takes on a greater risk, which it offsets with a higher interest rate. This translates into heavier monthly payments, directly affecting the borrower's repayment capacity. Moreover, in the absence of a personal contribution, the repayment term may be extended, thereby increasing the weight of the interest accumulated over the life of the loan. It is crucial to assess these additional costs precisely to avoid excessive financial pressure in the long term.

Stricter bank requirements and a high likelihood of refusal

To compensate for the absence of a down payment, banks often require additional guarantees. These include stricter borrower insurance, sometimes with higher premiums to cover the risks.
In addition, financial institutions will most often require a mortgage or a solid bank guarantee, strengthening their security in the event of the borrower's default. These tougher loan conditions make access to financing more difficult for certain profiles, notably those with a fragile financial history.
Finally, these bank guarantees, although necessary to obtain approval, increase ancillary costs, further adding to the total cost of the property project. In short, buying without a down payment requires rigorous preparation to avoid financial pitfalls and meet lenders' requirements.
Ultimately, a buyer without a down payment, without solid guarantees or an alternative financing solution, will very likely be refused a bank loan for their property project.

Understanding the importance of the down payment in a property purchase

In a property purchase project, the down payment therefore plays a crucial role. It affects not only the loan conditions but also how banks perceive the borrower. In other words, the larger this initial contribution, the more favourable the borrowing capacity, interest rate, monthly payments and repayment term will be for the borrower. In terms of the total cost of the property transaction, the difference can be major!

What is a down payment for a property purchase?

The down payment is the sum of money the buyer invests directly in their property project, without taking out a loan. This contribution may come from personal savings, an inheritance or a family loan. By reducing the amount to be borrowed, the down payment improves borrowing capacity by lowering monthly payments and shortening the loan term. It also serves as proof of seriousness and financial stability for banks, strengthening their confidence in the borrower. In short, the down payment eases negotiations and opens the door to more favourable financing conditions, such as lower interest rates.

Why do banks ask for it?

For financial institutions, the down payment is a guarantee of security. By investing a portion of their own resources, the borrower demonstrates their commitment and limits the risks for the lender. Banks regard the down payment as an additional guarantee in the event of payment default, because it reduces the loan-to-value (LTV) ratio of the property. This caution is part of the banking requirements aimed at protecting both the lender and the borrower against possible financial instability. Furthermore, a substantial down payment improves the borrower's creditworthiness, increasing the chances of obtaining a loan and benefiting from more flexible conditions.

What costs can a personal contribution be used to finance?

The personal contribution (down payment) plays a key role in property financing by covering certain additional costs that the bank loan generally does not finance.

These costs include notary fees, which represent approximately 7 to 8% of the price of an older property and approximately 2 to 3% for a new one. These costs include transfer duties, the notary's fees and administrative disbursements.
The contribution can also be used to pay guarantee fees, such as a mortgage (hypothèque) or a bank guarantee (caution bancaire), which secure the loan for the lending institution.
In addition, it is often used to finance the application fees associated with setting up the mortgage loan.
Some banks also require the contribution to cover part of the cost of the property, notably to limit their financial exposure.
In purchase projects that include renovation work, the personal contribution can be used to cover part of these expenses, thereby avoiding the need to take out an additional loan.
Lastly, in the case of a substantial personal contribution, exceeding the costs mentioned above, it can represent part or all of the security deposit payable when the preliminary sales agreement (compromis de vente) is signed, although these two amounts are separate.

Thus, by covering these essential costs, the personal contribution reduces the overall amount of the loan and, consequently, the total cost of the mortgage. It is therefore a strategic tool that makes administrative procedures easier, secures the financing and limits future debt. This contribution is particularly valued by banks, which see it as proof of the borrower's creditworthiness and commitment to their property project. Thus, although not mandatory, the personal contribution remains an essential lever for validating and optimizing one's property financing.

Conclusion: an initial contribution is recommended when buying a property

Buying a house without a down payment is an ambitious project, potentially feasible in some cases with strong guarantees and alternative financing solutions, but the chances of obtaining a mortgage without this initial capital are slim. Moreover, the loan terms will most often be unfavorable without this initial contribution, which is why it is recommended to build one up.
To prepare, negotiate and successfully carry out your property projects, do not hesitate to call on the expertise and support of your local Capifrance real estate advisor.
To find the property you are looking for, regularly check our property listings of homes for sale in France in your region.
Thanks to our network of partners, you benefit from the best advice and offers of services for your financing, your energy renovation work, your move and other aspects of your property project.

To make your project a reality, discover our properties for sale.

To go further, watch our video Short: Real estate trends – February 2025.

Also read on the blog

Author

Frédéric Rémy – Director of Sales Performance

A real estate professional with several years of experience within the Capifrance network, I would like to share essential advice with you to help you successfully complete your property project with our advisors.

Buying a House Without a Down Payment: Is It Possible in 2025?

In summary

Can you still buy property without a down payment?

Who can buy property without a down payment?