Little-Known Loans for Buyers

While low and no-down-payment conventional loans are difficult to find, home buyers with little cash can still get a deal.

Two federally-sponsored mortgage programs are still available for home buyers with steady jobs, but no savings.

The U.S. Department of Agriculture's Rural Development program will lend up to 102 percent — maybe more — on a property in a community with a population that is less than 10,000 and non-metro communities with populations between 10,000 and 25,000. Selected banks nationwide handle the loans.

Streamline K, a faster version of the Federal Home Administration’s home-rehabilitation loan, the 203(k). The Streamline K allows borrowers to get an extra $35,000 to improve the property they are buying, including replacing or repairing the roof, gutters and downspouts, HVAC, plumbing and electrical systems, flooring, siding, well and septic. Buyers or sellers also can use the money to paint inside and out, buy new appliances, and add or redo windows, doors, waterproofing and weatherproofing.

Source: United Features Syndicate, Lew Sichelman (07/17/2008)