Buying a house with no money down can be a possibility.

The importance of owning a home is not just giving you a dwelling place but also a great investment and a major source of wealth over the years. Buying a home can be the smartest decision a person or a family can make. Homes may not be appreciating as before but it will bounce back as it always does after a slump.

At present, where the economy is really affected by the housing slump, people find it harder to save money to buy a house. Though it is a natural thing to do for a family to want to invest in owning a home, it is now more difficult for people to have money to set aside for the future and pay for the down payment and amortization of the house of their dreams.

With the median home price now more than $180,000, a 20% down payment amounts to a staggering $36,000. This kind of cash can be easily available for some but not with the majority. Most people don’t have available cash provide for the down payment. So, how do you buy a house with no money down if you are with the majority?

There are several ways of buying a home by putting up only a small amount or even with no down payment at all. There are "interest only loans" that allow the home buyer to pay only the interest on the loan for a period of time.

There are also a number of specialty mortgage vehicles available to the buyer who does not have a down payment to offer. There are variable rate and adjustable rate mortgages that allow the buyer to put only a small amount down, or sometimes nothing at all.

There are also programs that allow the buyer to take out a mortgage, and then turn around and take out a second mortgage to cover the cost of the down payment. Some of these programs are riskier than others, but they do allow the buyer to buy a house with no money down.

Other popular ways in which eligible home buyers can get into the home of their dreams for little or no money down include owner financing, VA loans, lease/purchase agreements, and federal, state and local loan programs.

A real estate agent who is well versed in the different loan programs (state, federal and local) can help the potential home buyer to find the programs for which the buyer is qualified. Many states and cities have programs in place that encourage renters to become homeowners, and these programs often include help with the down payment. Depending on your income and your location, you may be eligible for a grant to cover the down payment on the home. Your real estate agent can help you complete the forms you may need to apply for these great programs.

The bottom line is this: it is possible to buy a house with no money down! Do not let the lack of a down payment keep you from making one of the most important financial investments of your life. A home of your own is a major asset, and one that appreciates year after year. Just manage your finances wisely as this is part of becoming a responsible homeowner.