Wells Fargo has a special loan program called CDMP that only requires 2% down for those whose income is less than $56k. It is a 30 year fixed conventional loan. The best part is that there is no Mortgage Insurance Premium (MIP) so your payment will be lower than if you went with an FHA loan with 3.5 % down. Your Debt-To-Income Ratios will then be better and you will qualify for a higher purchase price. I had a couple last year that were only approved to $100k with an FHA loan and through this CDMP program they qualified for $125k, which was what they needed to find a home at that time.
Academy Mortgage has a Down Payment Assistance Program that will give you 3% or 5% that you could use towards the down payment, or to closing costs and prepaids. If your agent is able to negotiate that the Seller pays some of your closing costs then a buyer would have fairly little out of their pocket to close the transaction.... more