Before the housing market fell apart in 2008, predatory lending was being dealt with. However, the nation as a whole did not heed the warnings. Some lenders were letting loans go through, that they knew could not be repaid.
Because of these predatory lending practices, the government eliminated a lot of down payment assistance programs that were contributing to the problem. Not to mention, programs like FHA increased their required down payment. This seemingly made it more difficult for lower income Americans to become home owners. However, the 3.5% down payment that FHA requires can be paid for through gifts & some approved assistance agencies. This makes our current “buyers market” a little more interesting to educated REALTORS® . On top of the 3.5% being paid by a family member or an outside agency, you may also be able to negotiate for the seller to pay some, if not all, of your closing cost.
USDA 100% loans for rural areas, allow you to purchase a home and finance 100% of the cost. If you get the seller to pay closing cost, well, you do the math. This can allow someone to own a home with very little to no upfront investment. And although some would argue whether it is a good idea to sell a home to someone without any personal investment, there are still other qualifications that must be met.