So there is no second opinion about it that owning a house is a most coveted desire of a human being. And when you are on your way to own your first house, the occasion becomes all the more special. But that also entails making huge commitment since it will be the first time in your life that you will be availing a long term loan. This loan term financial commitment, therefore, needs to be carefully planned. Fortunately, because of many tax incentives offered to house owners, buying a house is considered to be a good financial bet.

Many potential homeowners resist the idea of actually owning a home fearing that mortgage lenders ask the buyers to cough up 20 percent of the purchase price as down payment. No doubt, lenders do feel comfortable with borrowers who can bring something substantial to the table. But 20 percent norm is certainly not a gospel in the financial market. Today lenders have plenty of flexible small down payment loan programs for home buyers. In fact, the housing boom of past two decades is attributed to these programs. Here, one must not forget that low interest rates have also made a very big contribution.

Following is the list of some low cash down payment schemes which can help in realising your dream of actually owning a house:

Federal Housing Administration (FHA): FHA mortgages allow homebuyers to purchase a home with a cash down payment of a paltry 5 percent. These mortgages also facilitate financing of all non-recurring closing costs. Under this scheme, the maximum amount which can be given as loan in urban areas is $151,725. And this is not all. Borrowers also have the facility to use up to 41 percent of their gross income toward paying mortgage debt. This is a very high ratio compared with other programs of the same league.

Department of Veterans Affairs (VA): This program is specifically meant for veterans or active social figures. In this program, the down payment is nil and the maximum loan limit which could be issued is $184.000. VA borrowers also have this facility of pumping in their gross income up to 41 percent towards their mortgage debt.

Community Homebuyer Program: Two of the biggest lending agency in the financial market, the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), run this program through their networks of mortgage lenders positioned in different places. Under this program, the loan is generally provided to a group to buy a set of houses. The initial down payment limit for all buyers is pegged at 5 percent, 3 percent of which may be counted as a gift. Applicants are also entitled to make use of 38 percent of their gross income towards debt repayment. The maximum loan which could be granted under this program stands at $203,150.

Private Mortgage Insurance: This is an instrument by majority of big lenders. As the name implies, mortgage is privately insured and under this program, a 10 percent down payment is mandatory. You can, however, find some lenders in the market who may agree on a lower down payment level.

Mortgage Revenue Bonds and Mortgage Credit Certificates: Mortgages funded with these bonds and credit certificates entail an initial cash down payment of 5 percent of property price and offer interest rates that are 1.5 to 2 percentage points lower than conventional 30-year fixed rates. This type of loan is offered only to first-time homebuyers.

The brief summary of the above-mentioned programs make it clear that there is no dearth of options for first-time homebuyers. If you are a first time buyer, try to locate a real estate agent who have proven track record in assisting first time buyers. He can provide you lot of customised information like different programs to avail loans and area where the first timer should buy that is if you have not chosen on your own.

Finally, the process of owning a house is less complicated than ever before with options available on all fronts. So if you are still bogged down by that 20 percent down payment idea, our advice is: dump them as soon as possible. The realisation of your dream is just round the corner. Show some agility --- go, grab it.