The following is a process to step you through the bascis of buying with absolutely no money out of pocket. This government program is approved by HUD and completely RESPA compliant.

Find an FHA/VA approved Mortgage Planner that specializes in working with a DPA. A DPA is a down payment assistance program. One of the more popular DPA's is the Nehemiah program. Nehemiah has assisted in funding over 275,000 real estate transactions since 1998 and is completely HUD approved and RESPA compliant.

Next you will get pre-qualified for a down payment assistance program with a certified specialist. The most important part of qualifying is income verification. You must provide your last 2 years of income verification. Fortunately, credit is flexible. Typically credit scores must be around 580 to qualify but in some cases you can go as low as 550. This is NOT a first time homebuyer program. Anyone buying an owner occupied property is eligble.

Now it's time to start looking for your home. FHA limits have increased recently so you may be surprised how high you can go. In some areas (Los Angeles) FHA limits go up to $729,000. In most other areas the limit is $423,000. With values down all over the country this is an ideal time to buy.

Now your realtor must begin the negotiations with the seller. The sellers assistance is vital. They must participate in the DPA by funding the closing costs to you and down payment to Nehemiah (or whatever DPA you choose). The seller will be required to contribute 7-10% to you through Nehemiah and closing costs. Expect to offer closer to the list price of the property since you are requesting a large contribution. The seller is generally concerned with how much they are walking away with so the contribution is not important to them.

Meet with your certified DPA specialist to make your mortgage application. It is imperative that you choose an experienced professional who is familiar with the workings of Nehemiah (or whatever DPA you choose) and FHA. Working with an inexperienced "Broker" will cost you. You could lose time, money or even the home that you've chosen.

The requirements for qualifying are fairly simple. You will need your last two years of tax returns or W-2's. You will need to have your most recent paystub and 2-3 months of bank statements. If you are renting right now you will also need the last years worth of cancelled checks or a letter from the property manager.

Go to closing and be AMAZED! The closing is not a time to fret and be worried. The closing is the finsh line - the CELEBRATION! If your Mortgage Consultant has done their job then all questions will have been answered. I've seen individuals walk away from closing with a 5.75% 30 year fixed rate mortgage, a few hundred dollars back to them and a new HOME! You can do it too. Don't let the greatest buying opportunity of our generation go by.