Based on your overall qualifications and rating, you may want to consider any of the following options:

• FHA loans, those insured by the Federal Housing Administration are ideal for first-time buyers because downpayment requirements are low and the terms are fixed. In some cases, financing is also available for house repairs (www.hud.gov);
• VA loans – if you are active duty or ex-military, this is an excellent benefit you should exercise that potentially will allow you to purchase with no money down;

Grants/Subsidies
Have your agent connect you with an informed mortgage broker who handles REO purchases and first-time buyers. They are apt to be able to point you in the direction of financing programs like these:

• The American Dream Downpayment Act: Downpayment assistance for people whose income does not exceed 80 percent of the median income; (http://www.americandreamdownpaymentassistance.com/)
• Good Neighbor Next Door: Are you a teacher, firefighter, law enforcement officer or paramedic? You may be able to qualify for special financing (http://www.hud.gov/offices/hsg/sfh/reo/goodn/gnndabot.cfm) ;
• CHAFA – designed to provide up to 100 percent financing (need a link for this program)
• USDA Rural Development: Assists homebuyers in rural communities (http://www.rurdev.usda.gov/) ;
• National Homebuyers Fund: Provides downpayment and closing costs assistance to people of certain income levels (http://www.nhfloan.org/)
• CALHFA (California Housing Finance Agency): financing and programs for buyers in specified income ranges (http://www.calhfa.ca.gov/)

Check with your local city and county offices to find out more info about downpayment assistance programs in your area. Your mortgage broker should know about them and be able to guide you.

Conventional Financing
If you have excellent credit and steady employment, you may also qualify for a variety of conventional loans offered through various lenders. These are loans typically underwritten by Fannie Mae and Freddie Mac and require a solid credit history. Values in your local market will determine the required downpayment for your market.