Today's housing market has changed from recent years, and this affects home buyers in many ways. The requirement for a down payment is just one of those areas.
Historically, there have been programs that allow buyers to finance their down payment-- which essentially means you buy a house with no money down. While the programs today are different than these historical programs, there are other ways to reduce the down payment on your home. If you are looking for a no-money-down option, a rural housing loan may be your best choice. With this loan, you are limited to where you buy a home, but but you can avoid a large down payment (i.e. if you are willing to commute, this may be a good option).
If you qualify, another low down payment option is an FHA loan. With an FHA loan, you will only need to save 3.5% of your home's cost for a down payment.
While you will have to talk to a lender to find out if you qualify for either option, the lower down payment can make the initial purchase a much cheaper alternative to traditional loans. This way, you can buy your home much sooner than you would otherwise. It is important to note, however, that although these loans are less expensive to get into, the interest on the amount financed and the required mortgage insurance premiums will end up costing you more in the long run.
Information courtesy of Intermountain Multiple Listing Service. Information provided by IMLS is deemed reliable but not guaranteed. IDX information is provided exclusively for consumers' personal, non‐commercial use, it may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. IMLS does not assume any liability for missing or inaccurate data.