There is several options-I am going to eco some of the other comments-https://www.njhmfa.org-http://www.state.nj.us/dca/hmfa/-not only will you get up to 5,000 for the closing, this website can get the interest rate you deserve. Do you have a 401k? Seller Financing? Seller gift back of up to 6%? line of credit? a second buyer?
sit down and write down were all the funds can possibly come from.---wish you the best
Nicaury Milller
nicaury@nicaury.com
9083372824

Thank you everyone. You've all been a great help. I will take all your suggestions and research my options. Again thank you so much.

You have gotten some really great answers here, but the best one is to speak with a mortgage rep. Even though you do not have the 20% down payment, there are still programs out there (FHA) that will lend with 3% down. But it really depends on your credit and income. SMART START is also a good program, as it will give you up to $15,000 for closing costs or down payment assistance if you qualify in the terms of a 0% interest loan that does not need to be repaid if you stay in the home for 5 years, but it is only available in "Smart Growth" areas. For specifics, see the link that Heather previously sent you. The big question is IF you qualify (as free money has a lot of caveats), and in addition, the interest rate is higher on this loan than if you go FHA for instance.

The good thing for you is that rates are still historically low, and inventory is higher than it's been over the last few years. But you really should make sure you know exactly what you are getting yourself into. Real estate is a good investment as long as you can afford the monthly payments AND you plan on staying in the home for more than a few years, as it may take that long for us to get out of this economic slump. Do not, under any circumstances bite off more than you can chew. That is what started this mess in the first place, and you do not want to become another statistic!

If you need referrals to mortgage brokers that can help you choose the right loan for you, let me know and I can refer you to some good people. Good luck in your search!

Lisa Tempesta, Broker-Salesperson
Realtor® -Associate
Coldwell Banker Residential Brokerage / 2200 Rt. 10 West, Parsippany, NJ 07054
(973) 267-3030 x 129 / (973) 267-4161 fax / (973) 668-6322 cell
skype id lisa.tempesta / text 9736686322
connect with me on linkedin.com / plaxo.com / facebook.com

Hi,
You may want to check out the NJ Smart Start Program, one of my buyers used it late last year and closed with no money down. You must use certain mortgage companies in order to qualify for this program and Weichert Financial is on the approved list. If you would like a referral for an agent in your area feel free to contact me.

http://www.state.nj.us/dca/hmfa/consu/buyers/ownprg/smart.html

Thanks,
Heather Daccurso
Weichert Realtors-Howell
626 Route 9 South
Freehold, NJ 07728
Phone: 732-577-0440
Cell: 732-580-5309
Email: heather@heatherdaccurso.com

I would recommend that you speak to a mortgage lender. They would have all the up to date programs available. You need to discuss your individual situation with them. Each case is different. There is also a First Time Homebuyers tax Credit with a credit amount to $8000 on principal residences purchases until Dec. 1, 2009 There are some income limits. If you would like a recommendation for a mortgage lender I would be happy to give you a few to call. I can to reached by email at carol.eisenstein@prudentialnewjersey.com

Have you considered going with FHA? We've recently talked to a local FHA mortgage banker who can take 5% down with a FICO score as low as 580. With interest rates around 5.25, It might be worth considering.

I'm not a mortgage person, but I do believe that there are products with a 5% deposit. Check with a mortgage broker

M Gibbs,
With all do respect, they have stopped offering the products that got buyers (and lenders) in trouble! In a declining market, having a 20% buffer is a good idea. There is no big hurry to purchase when the market is declining. Wait. Save. Do without the PMI(Private mortgage insurance).
If you are hell bent on buying now, ask the homeowner for a second mortgage for the balance of your downpayment so you can go forward as a 20% loan.
Good luck!!