Purchase a home with a small down payment

Lenders have always offered government backed FHA programs which allow lower credit scores, higher income to debt ratios with 3.5% down aimed at first time buyers. More lenders are also offering a 5% down conventional product with mortgage insurance premiums. Other ways to buy a home with little down include using local or federal government programs, using a tax refund, and asking a relative or friend for a financial gift. Before you do any of the above, consult a professional REALTOR® about your options. A REALTOR® also will provide you with direction and connections to a lender and help you avoid costly traps and pitfalls in the home-buying process.