Hi Polittle, If you don't have the down payment for an FHA loan, and can't get the first time homebuyer 2nd mtg Bob mentioned, there is another way to save up the downpayment. I have a couple of friends who did this recently. Your husband can change his paycheck tax withholding to "exempt". Then, save the extra take-home money until you have the down payment. Then, change the withholding back. Basically, you will be borrowing the down payment from the IRS. When taxes are due, you can make arrangements to pay what you owe in installments. It works out to be a really cheap loan, and the IRS is easy to deal with. This won't show on your credit report as any debt owed, as long as you don't default on your payments, which won't become due until after you file taxes next April.