Ever see those commercials or ads where you can buy a home with no money down?  Although there are new programs that allow buyers to purchase a home with little or no cash, you will generally need some funds for down payment, closing costs or both. Since a mortgage payment will take a good percentage of your income, lenders will usually want you to have responsibility from the very beginning. There are options for low down payment (5% or less) mortgages such as FHA mortgages and there is always the possibility that the seller could absorb some of your closing costs (which are usually 3-5% of the selling price) but to buy a home with no cash down is a rare occurrence. If you have cash for closing costs, though, and excellent credit, there are new options for the conventional loan.