The Federal Housing Administration (FHA) insures qualified loans to promote homeownership for those with limited savings.  FHA loan limits vary by county, with larger loan amounts allowed in areas with higher housing costs. 

FHA loan features include:

• Low down payment requirements
• Flexible income, debt, and credit requirements to help borrowers qualify
• Down payment and closing costs that may be funded by a gift, grant, or secured loan.
• A variety of fixed-rate and adjustable-rate loan options.

The Department of Veterans Affairs (VA) guarantees loans to help qualified veterans, reservists, and active-duty service members to finance their homes.  VA loans are suited for veterans with limited savings or would prefer not to use their savings for a down payment.

VA loans offer these features:

• A no down payment option
• Flexible income, debt and credit requirements to help borrowers qualify
• Closing costs may be funded by a gift or paid by the seller
• A variety of fixed-rate and adjustable-rate loan options available

 USDA Rural Development allows for 100% of purchase price of home PLUS closing costs to be borrowed, only to be limited by value of the home.

Advantages

• No Down Payment
• No monthly mortgage insurance payment
• No cash reserves required
• No minimum credit score
• No maximum loan amount or purchase price limits
• No limitation on source of closing costs
• Seller is allowed to pay closing costs and repairs
• Affordable fixed interest rate with a 30-year term

Limitations

• Non-Occupant co-borrowers are NOT permitted.
• NO in-ground swimming pool
• NO existing manufactured homes
• NO duplexes
• NO jalousie windows (having narrow plates of glass that crank out)
• Property must have direct access to a publicly maintained road
• If in a flood zone (Zone A), the first floor must be above the 100-year flood elevation AND flood insurance is required.
• Subject to availability of funds

The Home Opportunities program allows borrowers with good credit to finance up to 100% of the purchase price on a single-family home with no money down.  It's designed for buyers whose savings are limited, for those who prefer to invest their money elsewhere, as well as for those who are concerned about their credit.  In addition, the Home Opportunities loan can be used to purchase a variety of housing options.

The Home Opportunities program offers:

• Up to 100% financing.  Finance the entire purchase price of the property.
• No down payment option available.  Allows you to preserve your savings.
• Flexible qualification guidelines.  Makes it easier to qualify by letting you use secondary stated income and non-occupant borrower income sources.
• A range of housing options.  Purchase a single-family home, condo, co-op, or a multi unit property.
• Special guidelines for public employees.  We offer incentives for fire fighters, police officers, teachers and other qualified public employees.

Best for people who:

• Are first-time homebuyers having trouble saving for a down payment
• Have non-traditional or less-than perfect credit histories
• Are move-up buyers looking to purchase a larger home without large cash reserves
• Have higher-return investments they don't want to deplete for a down payment.
• Are qualified public employees, including certified, licensed or accredited teachers, healthcare workers, fire fighters, police officers, and EMTs.