Yes, there are two truly zero down programs left- Rural Development (RD) and Veterans Administration (VA), but let's face it- if you don't buy in a rural area and you're not a Veteran, you won't qualify.

With FHA, you can get into a home for 3.5% down, and with some HUD homes you can buy for only $100 down, BUT that does NOT mean you won't need any money into the transaction!

There are at least two times you will need money into the transaction:

• For earnest deposit (in the industry we call this "I'm serious money"). This is typically $500 to $1,000. On a HUD home it's usually going to be $1,000 unless you buy a home for 50K or less. And it's typically nonrefundable. So please be sure you want this home before you put down an earnest deposit.
• For an appraisal deposit- Conventional appraisals are usually around $300 in our area and FHA appraisals are usually around $350.This may be going up soon with additional addendums appraisers will be required to complete. This may also be more if you buy in a rural area and the appraiser has to drive a ways.

And there are likely two more times you will need money:

• For a credit report. Credit reports are quite costly, and it is common to ask for credit report money upfront.
• Inspections- inspections are optional, but most buyers want them. Expect to pay $300 or more. Because they are optional, they are not always on the Good Faith Estimate.

Grand total- $1,700 approximately for most buyers in our area.

What if you are getting a gift? Then be prepared to prove where the money came from! If you want credit for the above monies into the transaction, it is imperative that the gifter be willing to prove they had the money to give, that the money was deposited into your checking account via a check (not cash, money order, etc.), and that the gifter was an allowable source, etc.

The moral of the story- PLEASE be ready to buy with a couple thousand of your own funds no matter if you are looking for the lowest down program available. It will help your transaction go smoother!