"No Money Down" - Is it really possible???

Many people see our ads, "buy this home with no money down".  Then of course our required disclaimer, "qualified buyers".  I am sure most don't call, they think it's the old bait and switch.

There are actually programs where they still only require 3% down.  There are also non-profit organizations that will help with the down payment up to about 10%.  Some such programs are:  Genesis, Nehemiah and Ameridream.  So, how do these programs work?  The seller must agree to participate in the program.  The contract is then written for the purchase price plus whatever the down payment must be plus the closing costs(It cannot be more than asking price, but what home is selling over asking now anyway).  The closing costs are reimbursed to the buyer at closing.  At the closing, the program wires the down payment money to the closing.  Out of the seller's funds comes that amount plus a few hundred dollars.  The prepaid insurance can also be reimbursed at closing.  Question is, can the $300-$500 inspection money(if the buyer has chosen to have one-not required but certainly recommended) be reimbursed as well?  I have heard yes and no so I don't have a concrete answer on that. 

So, with all this said, why would anyone rent?  When you own, you get the tax write offs.  Rent is basically burning money.  You also have something to sell at the end.  I'm not saying buy more than you can afford, we all know we don't need that.  But if someone can find a home that will cost around what their rental is, why not???