Today’s housing market has changed from recent years, and this affects home buyers in many ways. The requirement for a down payment is just one of those areas.

Historically, there have been programs to allow buyers to finance their down payment– which essentially meant you bought a house with no money down. While the programs today are different than these historical programs, there are other ways to redue the down payment on your home. If you are looking for a no-money-down option, a rural housing loan may be your best choice. With this loan, you are limited to where you buy a home, but but you can avoid a large down payment (i.e. if you are willing to commute, this may be a good option). However, you can often find a house just outside the city limits that will qualify.

Another low down payment option is an FHA loan. These requirements are typically much lower than what is needed for a loan with a bank or mortgage company. You will only need to save 3 1/2 percent of your home’s cost for a down payment. There are also qualifications for this program, like being a first-time home buyer, as well as buying a modest home.

While you will have to find out if you qualify for either option, the lower down payment can make this a much cheaper alternative to traditional loans. This way, you can buy your home much sooner than you would otherwise.