Numerous programs exist to help first-time buyers purchase a home.
The U.S. Department of Housing and Urban Development offers a variety of programs through the Federal Housing Administration that require approximately 4 to 5 percent cash down. Loan limits vary depending on the county where the property is located. Secondary mortgage firm, Fannie Mae through participating lenders allows people to buy with just 3 percent down payments. For details, borrowers should contact lenders who offer government-insured loans. Fannie Mae's Community Home Buyers Program has an income cap of 120 percent of the area's median income.