You can get 100% financing assuming full disclosure of your income and assets-10k is more than enough assets. you can have the seller pay for your closing costs with the CALFHA oan too. so you really only need a deposit to get into escrow and plan on getting some of it back if you're working with a good agent and lender(write an offer with a seller credit of 5%) you would have to be a first time homebuyer for this to work or not have owned a home in the last 3-5 years. the loan is currently at 6% for a 35 year fixed mortgage with the first 5 years interest only-a real good loan(my top pick for their product offering). in the event you aren't a first time homebuyer there are plenty of other options for you to obtain 100% financing- the CALFHA is the first route to pursue though. so, your outside lender is right--but make them PROVE IT TO YOU. How? Request a copy of automated loan approval based on the information you provide--this is a fairly detailed document outlining all of the items needed in order for the approval to be valid-at least of few pages. very easy for them to do, also, you should talk to your realtor/agent about the process of how a deposit works--even if financing goes south, you typically have a contingency clause written into any offer to protect your deposit for a given time period, 12-21 days is typical.