One options is FHA financing. No longer are we seeing the strict guidelines of the FHA of yesteryear, but a newer program that's as almost as easy as subprime...o.k, just kidding,...but with insurance backed by the government and less predatory lending programs.
What is FHA?
FHA financing is financing provided by the Federal Housing Administration (FHA), which has existed as a government corporation since 1934. Established under the National Housing Act, the goal of the FHA is to stabilize the mortgage market by providing an adequate home financing system through mortgage insurances. The FHA does not loan money out to borrowers, rather it provides lenders protection through mortgage insurance which protects lenders from the home-owner defaulting on their loan obligations.
Benefits of FHA financing
***Lower down payment (3.5 percent)
***Down payments and closing costs can be covered through gifts
***These loans are available for all homebuyers
***FHA loans are available to individuals with less than great credit history
***Individuals purchasing a condo do not have to pay an upfront mortgage insurance premium
***There are no cash reserve requirements for a FHA loans on single family residences or duplexes
***FHA for rehab cost added to the loan...not limited to bank owned however!