How to buy a duplex with no money down?

How to buy a duplex with no money down?


Buying a duplex with no money down may seem like an impossible task, but with the right strategies and resources, it can be achievable. This article will explore various methods and options for purchasing a duplex without having to make a significant upfront payment.

1. Explore Government Programs

Federal Housing Administration (FHA) Loans: FHA loans are backed by the government and offer low down payment options for homebuyers. These loans typically require a down payment of 3.5% of the purchase price, which can be a viable option for buying a duplex with no money down.

USDA Rural Development Loans: If the duplex is located in a designated rural area, you may qualify for a USDA loan. These loans offer 100% financing, meaning no down payment is required, making it an excellent option for those looking to purchase a duplex with no money down.

2. Seller Financing

Lease with Option to Buy: In this arrangement, you lease the duplex from the seller with an option to buy it at a later date. A portion of your monthly lease payment can be credited towards the purchase price, allowing you to accumulate equity over time. This method can be an effective way to buy a duplex with no money down.

Owner Financing: Some sellers may be willing to finance the purchase themselves, eliminating the need for a traditional mortgage. In this scenario, the seller acts as the lender and sets the terms of the loan. Negotiating owner financing can be a way to secure a duplex without a down payment.

3. Partner with an Investor

Joint Venture: Partnering with an investor who is willing to provide the down payment can be a mutually beneficial arrangement. The investor contributes the upfront funds, and you bring your expertise and management skills to the table. This partnership allows you to acquire a duplex without having to put any money down.

4. Use Home Equity

Home Equity Line of Credit (HELOC): If you already own a property with equity, you can consider taking out a HELOC to finance the purchase of a duplex. A HELOC allows you to borrow against the value of your home, providing you with the funds needed for the down payment.


While buying a duplex with no money down may require some creativity and exploration of various options, it is indeed possible. Government programs, seller financing, partnering with investors, and utilizing home equity are all viable strategies to consider. It is crucial to thoroughly research and evaluate each option to determine the best approach for your specific situation.


– FHA Loans:
– USDA Rural Development Loans: