In an odd twist, no-money-down mortgages are now easy to find. Due to the subprime crisis and global credit crunch, money is generally hard to come by. Your credit is increasingly important, and lenders are skittish of low documentation loans.
However, home builders are bringing back the no-money-down beast. They're stuck with inventory in a soft market, and they need to unload the homes. As a result, they've made it much easier for buyers to find downpayment assistance through nonprofit groups. These programs help people get FHA loans and buy a home.
Critics argue that some of these buyers cannot really afford the homes and are setting themselves up for failure - which will be covered by US taxpayers. On the other hand, the promotions (see photos at wsj.com) work to get people through the door and buy homes, even if they use conventional financing.
For more details, see the Wall Street Journal's coverage of Home Builders and FHA Loans.
Further reading:
Its amazing how things could change this much in just two years….