The difficulties when buying a home with little or no down payment can be cumbersome and frustrating. With the hot real estate market of the past few years and lower interest rates, lenders have been more willing to make concessions, to allow buyers to get into home ownership with less money. In fact, most financial institutions have created 100 percent financing or no down payment options for borrowers to consider. However, the expectations of what is required from the buyers have changed as a result.

Instead of requiring the traditional 5 or 10 percent down payment, lenders are offering financing to borrowers with no down payment. The borrower is only required to have the funds required to cover closing costs. This can be as little as 1.5 percent of the purchase price. With a creative mortgage broker you can even find alternative financing; if your credit will allow it, to provide the funds to cover closing costs.