### Comment:
You only need 3.5% for a down payment if you’ve got reasonable income/credit. Not ideal, but in some markets (especially the Midwest/Texas/etc.) you come out ahead  with that kind of mortgage as opposed to waiting a few years longer for 20% while renting.

### REPLY:
If you're willing to move out of the established city areas, you can get a USDA for 0 down.  I just bought a house in a suburb just outside of Dallas this way.

### END.