To purchase a house with full payment using a loan, secure a mortgage that covers the entire purchase price. This typically requires a loan-to-value (LTV) ratio of 100%, meaning no down payment. Options include VA loans for military veterans, USDA loans for rural areas, or private lenders offering 100% financing with higher interest rates. Steps include checking creditworthiness, pre-approving for a loan, negotiating terms with the seller, and finalizing the mortgage through closing.

Most mortgages require a down payment, but exceptions exist for specific programs. For example, VA loans cover the full purchase price for qualified buyers, eliminating the need for a down payment. However, these loans often impose income and military service restrictions. USDA loans similarly offer 100% financing for rural properties, though property eligibility is strict. Private lenders may provide 100% financing but at elevated interest rates, typically exceeding 5-7%, and may require perfect credit or collateral.

Data from the Consumer Financial Protection Bureau (2023) shows 65% of homebuyers used a mortgage with a down payment, averaging 13% of the purchase price. Only 5% of loans had a 0% down payment, mostly through specialized programs. VA loans accounted for 6% of all mortgages in 2022, with an average interest rate of 5.5%, slightly below conforming loans. However, 100% financing increases loan costs due to private mortgage insurance (PMI) or higher rates. For instance, a $300,000 home with a 6% rate would cost $17,000 annually in interest versus $12,000 with a 20% down payment. Thus, while full-payment loans are possible, they carry significant financial trade-offs.