Having the down payment to purchase a home is the biggest hurdle to overcome for most first time home buyers.  While a 20% down payment has become fairly common for many conventional mortgages, there are programs out there that will finance homes for much less, up to loans that will finance a home for its full value.

Here are many of the programs:

HomePath Fannie Mae foreclosures  On Fannie Mae owned properties, HomePath Financing offers these benefits to qualified individuals: low down payment, no mortgage insurance and expanded seller contributions  on move-in ready properties.  HomePath Rennovation mortgages provide both the funds to purchase and to renovate in one loan.

Freddie Mac Home Steps  On Freddie Mac owned homes, the Home Steps program currently offers up to 3% assistance on closing costs.  Their SmartBuy program offers a limited two year warranty and up to 30% off on appliances.

HUD homes are available for sale in Washington.

USDA loans are currently available that will finance the entire purchase price of a home.  Income eligibility (low and moderate income) requirements apply.  The USDA Rural Development Guaranteed Housing Loans have no required down payment and applicants may earn up to 115% of the median income for the area on a loan amortized over 30 years.

USDA Direct Housing Loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities. To qualify you must have low or very low income.  Low income is 50% to 80% of the Average Median Income in the area.  Loans are for up to 33 years (38 for those with incomes below 60 percent of AMI and who cannot afford 33-year terms). The term is 30 years for manufactured homes.

Veterans Administration Home Loan Program is a loan guaranty program that provides for lower interest rates and down payments for qualifying service members and veterans.

The Good Neighbor Next Door Program  is a program available through HUD to law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians.  HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. In return you must commit to live in the property for 36 months as your sole residence.  Homes are listed exclusively through the program for 5 days.

The FHA currently offers seventeen Single Family FHA Insured Mortgage Programs.  The standard HUD 203(b) qualifying loans allow up to approximately 96.5% financing.  Other FHA mortgages include FHA adjustable rate programs, 203k rehabilitation mortgages, energy-efficient mortgages and manufactured home loans among other programs.

The Washington State Housing Finance Commission has several programs available for home buyers.  The include the following:

Beginning Farmer & Rancher financing for land, improvements, equipment
Energy Efficiency financing for efficiency & renewable energy projects
Multifamily & Nonprofit Housing financing for developers of affordable rental housing
Nonprofit Facilities financing for nonprofit 501(c)(3) organizations’ capital facilities
Senior Housing access to bond & tax credit financing for senior housing developers
Washington Works Housing Program a multifamily program for nonprofits
HomeChoice Down Payment Assistance is a down payment assistance, second mortgage loan program for qualified borrowers who have a disability or who have a family member with a disability living with them.  Funds up to $15,000.  HomeChoice combines with House Key State Bond first mortgage loan program.  One-on-one counseling is required.  The income limit in Chelan and Douglas Counties is $71,900.  The HomeChoice program provides a 1.00% interest rate on the Down Payment Assistance loan program for first-time homebuyers (borrowers who haven’t owned and occupied their primary residence in the past three years) or buyers who buy in a a targeted area do not have to be a first-time homebuyers.  This program works in conjunction with the House Key State Bond Loan.
House Key State Bond Loan is a primary mortgage loan targeted at first time home buyers and buyers in targeted areas.  There are income limits as well as maximum acquisition costs for the home.

You can also get a free copy of the Washington State Department of Financial Institutions Guide to Home Loans.

You can attend a Free Home Buyer Education Seminar from the Washington State Housing Finance Commission.