These days in the mortgage world, the phrase “low down payment” is viewed as an anomaly. With investors combating foreclosures and many states caught in a declining market, it hardly seems viable to require little or no cash at the time of closing. Before you lose hope in finding a low down payment option, take a look at these HUD programs you might qualify for:

Are you a United States Veteran? The VA Mortgage offers a true zero out-of-pocket option. That’s right, no down payment! This loan generally provides lower interest rates than comparable mortgages. In order to be eligible for this type of home loan, you must have served on active duty and have been honorably discharged.

Are you a teacher, law enforcement officer, or firefighter/EMT? You may qualify for the Good Neighbor Next Door program, aimed at providing a substantial discount for people with occupations considered to better the community. Those who are eligible can cash in on a 50% discount from the list price of the home. In order to qualify for this program, the home you are buying must be located in a revitalization area and you must commit to reside there for at least 36 months.

Are you currently living in public housing? If you are, you might be able to take advantage of the Homeownership for Public Housing Residents program, which, based on your resources, could require as little as a 1% down payment. This program allows you to convert your monthly rent payments into mortgage payments toward your current unit.

Are you a lower-income home buyer? The American Dream Down Payment Initiative program may be right for you. This is a government-funded program with $200 million available each year to assist lower-income home buyers. Grants for this program may not exceed $10,000 or 6% of the home price, whichever is larger. In order to qualify for this program, you must make less than 80% of the median income in your area.

In addition to these programs, there may be local grants available that can assist you with either part or all of your down payment for a new home. It is important to contact a mortgage lender that knows or can research local grant options in your area, as prerequisites will vary. A local grant coupled with a federally-insured mortgage creates financing that is affordable and safe to the consumer.

Make sure you know your options!