Mortgage Guy hit it all pretty much on the button.

If you want to shop for a USDA rural loan, use the link I've attached. Remember that there are income limits which restrict borrowers from making too much money to qualify. That said, there is no loan limit.

For all practical purposes, zero down lending is a thing of the past. At least until the next market frenzy comes along. Generally the minimum you can put down is 3% with FHA lending. That changes to 3.5% come 10/1/2008. The next step up is 5% for conventional loans. This becomes a tricky issue when a condo is involved. There are numerous 'behind the scene' restricitions that must be fulfilled when the down is so low - espceially when condos are being purchased. The recently enacted Federal law that allows first time buyers a future tax credit can partially offset the up front expense but even then there are restricitions regarding the length of ownership and any repayment that might be due when you sell down the road. Find a good lender who can help you look at your options and decide what plan might be best for your circumstances. Keep in mind, if you can negotiate your closing costs to be covered by the seller, it will leave you additional funds to direct toward your down. That's going to require a good real estate agent. Overall though it's a great time to be buying.

Guest 100
There may be some other options for first time buyers besides FHA if your bankruptcy does not prevent your qualification for these programs. Here in the Seattle area Boeing Credit Union has a program for first time purchasers with specific income limits in the County in which they are purchasing as low as $500 (yes, five hundred) down. If you are a first time buyer which is usually defined as not having owned a home in the past 3 years there may be special financing programs that would meet your needs. Asking a Realtor and/or lender in your area is a good idea.
Mary

In the current market, your $0 down options are very few. Your main options are the following:

1. VA Loan (either you or your spouse must qualify for a VA loan)
2. FHA Loan with down payment assistance (this is going away as of October 1, 2008 unless congress acts to change this)
3. Rural Housing Program (this has income restriction and the property must be located in certain rural areas).

If your cirumstances fit within one of the above options, then you might be able to obtain 0 down loan. Regarding the bankruptcy, FHA requires that at least 2 years have passed since a chapter 7 has been discharged. I would recommend that you speak to a knowledgable Mortgage Consultant who can help guide you with your options.

P.S. FHA will allow the seller to contribute up to a maximum of 6% of the sales price toward the closing costs, but it cannot be used toward the downpayment.

Hi,

FHA loans are really common right now because they have very low down payment required by the buyer of 3%. With FHA you can negotiate up to 5% seller contribution toward closing costs as well. 0% down is not anything that I think is available or will be available any time in the future. on a 350K home you would need atleast $10,500 of your own money.

Call a good lender and ask about the effect of the bancrupcy. Your specific situation needs to be evaluated. Good luck!