Another option not mentioned so far is One Time Mortgage Insurance.
Great strategy if you know you are going to be in a home for several years. Have 10% equity and the premium is financed into the loan. Most significantly, this program usually provides the lowest payment compared to combination loans and lender paid MI. Recent legislation now requires the MI company to refund a substantial portion of the financed premium if you sell or refinance within the first 15 years! Unlike a combination loan, you retain the ability to pull equity out with a second trust or HELOC for improvements, debt consolidation, remodeling or other expenses. Payment is completely tax deductible and there is no PMI.... more
Agree with Gregorio, the drawback is that Homepath is only available for Fannie Mae owned properties. So if you can find an Fannie Mae REO that works for you, then great, if not, then your looking at putting 20-25% down with conventional financing.