Yes you can, but you will still have to have 5% down payment based on the purchase price most likely. If the owner is giving you that 5% or if you are agreeing on say $100k price, but the loan is for $95k then the lender may go for that. If the owner is keeping some money you pay each month towards a down payment you can use that, but it will most likely require much documentation so save your all your payment info to them. Also you should ask the owner to keep really good records. Most likely you will also have to work with a smaller bank or mortgage broker otherwise there could be some snags with underwriting. Currently a USDA loan will also work in the Monroe area if that's where you are. Hope it all works out and let me know how it ends up.