Lending Changing (again)
Zero down programs are tightening up.

A bill was just passed that will eliminate what was called charitable gifts. That is the seller of a home would gift an amount to a non-profit such as The Nehemiah Foundation who would then give the buyers a downpayment equal to the amount gifted by the seller. This process allowed the buyers to purchase a home using FHA financing which requires at least a 2.25% downpayment without having to come to the closing with the downpayment out of their own pocket.

There are still zero or low money down programs available such as private equity financing and special 1st time homebuyer programs. Also, for our military and prior military members, there are VA or DVA loans.

If you are interested in a low or no-down payment program, talk with a mortgage professional about your options. These new laws take effect around October 1, 2008.