This a good question for a lender, so Dave Clark with HomeStreet Bank offered these financing solutions for your situation:
“Great question, and one I hear often. First that comes to mind is USDA-RD! This program is designed for zero down payment. It has income limits, but helps people in more rural areas like ours.
The second option is VA! This is a way our national government supports those who have or are currently serving in the U.S. Armed Forces. You or your spouse must be a veteran to participate.
The third option is FHA! They require a down payment of 3.5%, and is designed for lower income families. This program has lower credit score requirements!
The last option is a government assistance program like Idaho Housing and Finance Association. They offer down payment and closing cost assistance coupled with the loan product; whether it’s FHA/VA/Conventional.
Putting less than 20% down there will be mortgage insurance or a guarantee. With USDA and FHA these are included in your monthly payment amount for the life of the loan.”