0% Down Mortgage Without Military Service: HERO 100 vs VA vs FHA

The Maricopa County Context

Home prices in Maricopa County are high enough that the down payment is the primary barrier to entry for many buyers — even buyers who can comfortably afford the monthly payment. The first step to solving the down payment problem is understanding which programs are actually available and what their specific eligibility requirements are.

The 2026 baseline conforming loan limit is $832,750. This number matters for HERO 100 because it defines the boundary of the 0% down structure. If your purchase price requires a loan amount above $832,750, you will typically need a down payment to keep the loan within the conforming limit — even if you are otherwise eligible for HERO 100.

Option 1: Community Hero 100 (HERO 100)

HERO 100 is Liberty Federal Credit Union's portfolio program for eligible community professionals. It is designed to remove the down payment barrier for the people who keep communities running: teachers, nurses, police officers, firefighters, emergency medical technicians, TSA employees, and eligible government agency roles.

The program offers 100% financing with fixed-rate and ARM options. Like most programs that replace a down payment, HERO 100 includes a mortgage insurance structure — you are swapping a down payment you do not have for a monthly cost you can plan around. The mortgage insurance is not a penalty; it is the mechanism that makes the 0% down structure possible.

The practical planning approach: structure the deal so the loan amount lands at or below $832,750. If the purchase price is higher, negotiate seller concessions, builder incentives, or a price reduction to keep the loan amount within the conforming limit. Loan amount strategy matters more than list price strategy when you are trying to preserve the 0% down structure.

Option 2: VA Loan

If you have earned VA eligibility through military service, the VA loan is still the strongest mortgage product in the market. No down payment is required in most cases, and there is no monthly private mortgage insurance. The combination of 0% down and no monthly PMI is genuinely difficult to beat.

The primary cost of a VA loan is the funding fee — a one-time charge that varies based on down payment amount and whether it is a first or subsequent use of the benefit. Some borrowers are exempt from the funding fee. The funding fee can be financed into the loan, which means it does not require cash at closing.

Option 3: FHA Loan

FHA is not a zero-down program. The minimum down payment is 3.5% for borrowers with qualifying credit. FHA stays in the conversation because it offers more credit flexibility than conventional programs — lower minimum credit scores and more lenient treatment of recent credit events.

The cost of FHA's flexibility is mortgage insurance. FHA requires an upfront mortgage insurance premium (typically 1.75% of the loan amount, financed into the loan) plus an annual premium paid monthly. Depending on your down payment and loan term, the annual premium may last 11 years or the full term of the loan. For borrowers who can qualify for HERO 100 or VA, FHA is rarely the better choice — but for borrowers who need the credit flexibility, it can be the path that keeps the deal alive.

The Decision Framework

Start with VA if you qualify — it is the cleanest structure in lending. If VA is not available, evaluate HERO 100 eligibility based on your occupation and the loan amount you need. If neither VA nor HERO 100 applies, FHA is the most common fallback for buyers who need credit flexibility or a low down payment.

The most important step is to have the conversation with a loan officer before you start shopping — not after you have a contract. Knowing which program you qualify for and what the loan amount limits are gives you a clear budget and prevents the frustration of finding a home you cannot finance.