As of October 1, 2008 FHA will prohibit the use of seller funded down payment assistance programs. This means that a buyer getting an FHA loan would need a 3.5% down payment. FHA will still allow CNE 2nd mortgages and Georgia Dream 2nd mortgages to help buyers get into the home with -0- down. Also if a borrower is a 1st time homebuyer they may qualify for a THDA loan that will contribute 4% towards the buyer's down payment, closing cost and/or prepaid items. Also Rural Development loans still offers buyer's 100% financing. To check eligibility you can go to http://eligibility.sc.egov.usda.gov and go to single family homes, then key in the property address. There is no monthly PMI with this program.