In addition to all the good info below, another "new" option is to buy a home that is associated with the Govt's HomePath program. Basically you can view select homes that they have for sale and purachse them without an appraisal for 3% down and that can be funded by the borrowerâ€™s own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer.
You also will not have MI (Mortgage Insurance) on a monthly basis like you would with an FHA loan. And sellers can contribute to closing costs.
Homes are listes on HomePath.com. Select lenders can accomodate the homes listed on the site, and I am one of them. Please feel free to contact me to get pre-approved- my contact info is at http://www.LendWithScott.com
Annie-Mac Home Mortgage