There is a product available at 10%, however, it has to be a Fannie Mae foreclosure. Go to http://www.homepath.com
and check out Fannie's Foreclosure's. Ha...sounds almost like a real company huh? The HomePath loan was extended by Congress for one more year. It requires at least a 680 credit score, I believe (haven't done one yet). Other things about it: 10% down for investor. Fannie will pay up to 2% of closing costs. Appraisal already done. You may finance up to 30,000 in repairs to the house, however, finding a lender to do the repair escrow is a tough one. That's why I'm going to tell you to find a broker that works with Plaza Mortgage. Banks like Regions and Wells Fargo can do HomePath loans but not the repair part of it. Plaza will do the repair part of it. Be patient. Plaza sucks and takes forever to underwrite (typical turn around time is about 60 days to close if doing repairs). They are very picky about the contractor's invoice. Let the broker decide who to use for the repairs (don't do it yourself). You can have anything done that is not structural. You can buy new appliances, upgrade kitchen, bath etc. If anyone reading this is buying a homepath property as a primary residence, the minimum down payment is 3%. Oh...and there is no mortgage insurance on the 10% down investor loan or primary residence 3% down (it's built into the rate). Hope this helps.