More and more of my clients in the Ann Arbor area are buying homes with no down payment loans.  In the 1990's it was very rare for someone to buy a home in Washtenaw County without some sort of down payment (except for VA loans which always offered a no down payment loan).  In 1996 we were able to offer our clients in Michigan a government sponsored loan for rural properties that would allow 100 % financing.  We advertised the program and were able to help a lot of first time home buys buy homes with only a few hundred dollars of there own money.  In 2006 45% of first time home buyers used a no down payment loan when purchasing their first home in the United Sates, up from 25% in 2005. 

There are a lot of mixed feelings on zero down loans within the real estate and lending industries.  Some view it as a way to get more people into homes and there for strengthen the economy (President Clinton really pushed the goal of increased home ownership to improve the economy).  Others are concerned that if home buyers don't make a financial contribution to the purchase of there new home they will be more likely to let it be foreclosed on if there finances go south.  Either way I believe zero down loans are here to stay and in fact will become the norm for first time home buyers in the coming.  For more information on zero down loans on your first home or your fifth go to http://www.annarborfinancing.com/.