You might want to look into FHA loan as you can put down as little as 3%. The federal goverment has just voted on.
The new law which provides a refundable tax credit of up to $7500 for the purchase of a first home was signed into law on July 30 by President Bush. It is refundable, like the EIC. But it must be added to the tax of tax returns for the 15 following years at $500 per year. The taxpayer must not have owned a home during the 3 year period prior to the purchase of the home for which the credit applies.
Keller Williams Wilshire
The Reavis Group