Many first time home Home buyers do not have a large down payment for a new home. While many people think this may hold them back from home ownership not having a large down payment does not mean you cannot purchase a new home. FHA financing allows down payments as low as 3% and is used by many first time home buyers.

FHA loans can only be used for primary homes, and not investment properties or second homes.

Multi-Family Homes can be purchased using FHA financing as well with as little as 3% down. A 6% seller concession can still be used for FHA Multi-Family financing.

A Chapter 7 Bankruptcy can be discharged for as little as 2 years and still qualify for FHA financing. Re-established, timely credit is required if you have had a Bankruptcy.

If you don't qualify for a FHA home loan, a good First Time Home Buyer alternative program would be MyCommunity.

HomePossible is also a good mortgage program provided by Freddie Mac. HomePossible is also a 1st time home buyer's program

FHA allows for all of your 3% down payment to come from a gift from a relative. Coupled with allowances for up to a 6% seller concession, you may qualify to purchase a home with little or no personal out of pocket expense.

Under certain conditions and with the approval of the bankruptcy trustee, you can purchase a home using an FHA loan once you have paid your Chapter 13 bankruptcy on time for 12 months.