In 2008, the true -0- down payment Mortgage was eliminated, with the exception of the USDA Rural Development loan (see USDA loan).  Otherwise, the minimum down payment is 3.5% of the sales price of a home, but there are many resources you can use to get that money. 

Here are some of the resources you can use to get your down payment money:

*  IRA's, 401k's, Thrift Savings Plans-- cash out or borrow.  If you borrow from a qualified employer retirement plan, the payment is not part of your debt ratios.

*  Gifts from family.  These require very specific documentation procedures to be followed, so contact me before doing anything.

*  Gift funds from a family member can be borrowed by that family member as long as the home buyer is not a part of that loan.

*  Gift funds from sources other than a family member like a Union, employer, governmental agency, non-profit or such sources that have a program to provide homeownership assistance to low-to-moderate income families or first time home buyers.

*  A close friend with a clearly defined and documented interest in the buyer.

*  Rent deposit credit/refund from your landlord.

*  The buyer can also borrow "collateralized" money.  The loan must be secured by a car/boat/other real property, investment account, or something similar.  You can not use household goods.  The payment is included in your debt ratios.

Please contact me before using any of these resources since there are very specific documentation standards that apply.  Failing to follow the requirements in advance of doing any of the above could result in not being approved for a loan.