When I purchased my home in 2005, there were tons of options for borrowers who couldn’t bring a down payment to the table. In fact, it was possible to take out a mortgage without putting any money down or even submitting documents (a no-doc mortgage is based on a borrower’s credit score alone).

But, these days are over.

Now, lenders want to make sure that a borrower has some stake in the property. Without putting a down payment on the table, it’s easier for a borrower to let the home slip into foreclosure. Basically, the homeowner feels that there’s not much to lose.

It’s practically impossible to find a no down payment mortgage in today’s market, but many homeowners are still able to take out FHA mortgages with only 3% down. That’s much more affordable than the 20% generally required for traditional loans. FHA (the Federal Housing Administration) is a government organization designed to help Americans own their own homes. They’re more flexible about qualifications, although borrowers still have to prove a lot more now than they did a few years ago.

To learn more see: FHA Mortgage Guide.

Tags | down payment, FHA