One option is the VA mortgage. With VA, you can finance 100% of the purchase price. However, you must be either military, national guard, or a veteran to qualify.
Another way is USDA. With USDA, you can also finance 100% of the purchase price. However, your income must be within the limits for the family size for the county in which you want to purchase a home. In addition, the home must be in a "rural area." Usually, that means an area with a population of 10,000 or less. For more information about income and property qualifications, see http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do.
With FHA, you must put at least 3.5% down. However, there may be grants or "silent seconds" available in your area. Usually, they are made available by local, county or state governments. "Silent seconds" are second mortgages that do not have to be paid back provided you live in the home for a minimum period of time. Some states will allow you to "borrow" against your expected homebuyer tax credit. For more information about available grants and programs in your state, see http://portal.hud.gov/portal/page/portal/HUD/states.
Even if you could buy with so little down what do you do when something breaks? Lose a furnace and a water pump just how will you pay for it?
Check with you county affordable housing, do a google search.
Some counties are offering the $8k first time homebuyer money upfront to allow you to buy a place. You normally will have to use an "approved" lender on their list so contact one of those lenders.
I understand that you may want to take advantage of the low interest rates and low home prices that are avialable right now but what I do if I have a client in the same position as you is have a consultation with my reputalbe mortgage broker my client and myself. After learning more about you and your financial and income history, and if you have served in the military or work for the goverment we would determine a plan of action for you. There might be some funds available for you to tap into, or the information may show that it might be best that you wait until more reserves are built up. But with just $1000 you would want to take advantage of seller assist. This is when you put an offer in on a home and ask for a certain percentage back from the seller that would go twords your closing costs. Again you would need to refer back to your mortgage broker to know how much you would need. First step get in touch with a good Realtor who in turn can not only find you appropriate home to look at but refer a good mortgage broker. I hope it works out for you .
Keller Williams Real Estate