How can we become first time home buyers with little to no money down?

We are a young couple in our early 30's, who are tired of paying rent. For the last 6 years, we've been paying 1400+/month and watching that money go towards someone else's equity. Because of our modest income, we have not been able to save any money for any sort of down payment. However, we've been very careful in building up and maintaining an excellent credit history over the last 6-7 years. Every year with the cost of housing going up and up, it seems like we will never be able to afford to buy a house and stop throwing our money away towards rent. Looking for a realistic means to own without signing our lives away.How can we become first time home buyers with little to no money down?
I attended a workshop given by the USDA. It seems they have loans available for little or no money down. To me, it seemed like a very good program. Try this website for more info. http://www.rurdev.usda.gov/How can we become first time home buyers with little to no money down?
Is it possible to find rental housing cheaper? Can you cut in 1-2 areas to save additional funds? Have you pre-qualified for what you can purchase now.



Keep that good credit, bury debt, perhaps a good Realtor can find you a home that needs some cosmetic TLC or owner financing.



Best to you. Follow your dreams.
Well I just want to let you know that this senario is the most common. Mortgage companies these days are able to finance you 100% of your purchase. In California you don't have to pay PMI any longer that's why you get two loans. One @ 80% , and the other @ 20%. But keep your Fico Score High so that you may get good interest rates.
I was in you situation 13 years ago, when we married and had little to no money. We rented for 6 years, saving every penny and tring to live debt free as much as possible. Mortages are not hard to get, talk to a reputable realitor for suggestions on a good reputable mortage company. Also look into credit unions as they are more likely to help than normal banks.

With little down, you will probably have to buy PMI insurance on your mortage. PMI is often a nessasary evil but enable people to qualify for a mortage when there is a small downpayment. After you have owned you home for a while have your house reappraised by the mortage company to get rid of the PMI asap. PMI used to cost $20-$40 a month, might be more now? but once you have 20% equity it can be removed.

Lastly avoid anything that sounds too good to be true..often it is.

Best of luck